Rentokil Initial (LON:RTO) saw its revenue rise in the third quarter of the year, the pest control company has said. The group, which also supplies washroom services to commercial, industrial and public buildings, meanwhile could be forced to sell the UK arm of its recently acquired Cannon Hygiene business.
Rentokil’s share price has been little changed in London in today’s session, having added 0.03 percent to 314.80p of 12:53 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent lower at 7,042.84 points.
Rentokil posts Q3 results
Rentokil announced in a statement today that its ongoing revenue had climbed 11.8 percent on a constant exchange rate basis in the third quarter of the year, of which 4.1 percent was organic revenue, while 7.7 percent came from acquisitions. The company’s Pest Control division delivered 11.4-percent revenue rise while its Hygiene revenues increased by 22 percent.
“I am pleased with the performance of the group in the third quarter,” Rentokil’s chief executive Andy Ransom commented in the statement, adding that the company remained on track to meet full-year expectations.
In a separate development, the Competition and Markets Authority (CMA) said today that it had provisionally found that Rentokil Initial’s purchase of Cannon Hygiene could lead to higher prices or lower quality for some customers. The watchdog explained that it had found that “there could be reduced competition in the supply of washroom waste disposal services for customers that require a single provider across the whole or a large part of the UK”.
The CMA is now inviting comments on its provisional findings and will further seek comments on its remedies notice which “outlines measures the CMA could take if it finally decides that there has been a substantial lessening of competition,” including “the potential sale of the Cannon UK business”.