Rentokil share price rallies as group delivers higher revenue and profit

Written by: Tsveta van Son
March 11, 2020

Shares in Rentokil (LON:RTO) have surged in London in today’s session as the company reported full-year revenue, profit and cash in excess of its medium-term financial targets. The pest control group further announced that it had appointed Richard Solomons as its new chairman.

As of 14:29 GMT, Rentokil’s share price had added 7.02 percent to 352.10p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.39 percent down at 7,079.82 points. The group’s shares have added more than 21 percent to their value over the past year, as compared with about a two-percent drop in the Footsie.

Rentokil posts full-year results

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Rentokil announced in a statement today that its ongoing revenue had climbed 11.5 percent to £2.46 billion last year, while its ongoing operating profit had advanced 11.8 percent to £329.3 million. Adjusted profit before tax meanwhile came in 7.4 percent higher at £308 million.

“We continue to execute our Right Way plan to deliver revenue and profit growth and the business has performed very well in 2018,” Rentokil’s chief executive Andy Ransom commented in the statement, adding that the company was “confident of delivering further progress in 2019 and anticipate a slight increase in market expectations for 2019”.

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Group appoints new chairman

The pest control group announced in a separate statement that Richard Solomons will succeed John McAdam as chairman of the company. He will join the board as non-executive director from March 1, and, subject to shareholder approval, will become chairman at the conclusion of the group’s annual general meeting on May 8.

Solomons is a senior independent director and chair of the audit committee of Aston Martin Lagonda Global Holdings and until June 2017, was chief executive officer of InterContinental Hotels Group (LON:IHG).

As of 15:05 GMT, Thursday, 28 February, Rentokil Initial plc share price is 352.10p.