Rentokil Initial Plc

Latest Results (20.08.2024):

Revenue Growth

Rentokil Initial Plc reported a significant increase in revenue for Q4 2023, with Group Revenue up 45.8% and Statutory Revenue up 44.7%. This growth was driven by strong performances across various regions including Europe, Asia, Pacific, UK, and LATAM. North America also contributed with a 3.1% Organic Revenue growth, particularly in Pest Control services.

Operating Profit

The company saw a substantial rise in its Adjusted Operating Profit, which increased by 57.0%, and Statutory Operating Profit, which surged by 96.9% for Q4 2023. The Group Adjusted Operating Margin also improved by 120 basis points to 16.6%. This margin expansion was observed across all business categories, with notable improvements in Pest Control and France Workwear.

Earnings Per Share

Rentokil Initial Plc's Diluted Adjusted Earnings Per Share (EPS) increased by 8.8% to 23.08p in Q4 2023. The EPS also saw a significant rise of 30.8% to 15.14p. At constant exchange rates, the Diluted Adjusted EPS was up by 12.9%, reflecting the company's strong financial performance.

Free Cash Flow

The company generated a Free Cash Flow of £500 million in Q4 2023, representing an 89.4% Adjusted Free Cash Flow conversion. This strong cash flow performance has enabled Rentokil Initial Plc to reduce its net debt to EBITDA ratio to 2.8x by the end of December 2023, achieving this target a year ahead of schedule.

Dividend Increase

Rentokil Initial Plc has recommended a final dividend of 5.93p per share for Q4 2023, bringing the total dividend for the fiscal year to 8.68p per share. This represents a 15.0% increase, in line with the company's progressive dividend policy, reflecting its robust financial health and commitment to returning value to shareholders.