Rentokil share price up as group says trading started well

on Apr 18, 2019
Updated: Mar 11, 2020
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Shares in Rentokil Initial (LON:RTO) have climbed higher in London this Thursday, as the company reported that trading had started well this year. The news marks a boost for the blue-chip group after earlier this week, the Competition and Markets Authority flagged issues over the company’s acquisition of pest control rival Mitie, saying that the FTSE 100 company had to offer proposals to address its concerns.

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As of 09:35 BST, the Rentokil share price had added 0.98 percent to 371.70p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.32 percent lower at 7,447.33 points.

Rentokil posts Q1 results

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Rentokil announced in a statement this morning that trading had started well across its businesses in the first quarter of the year, with ongoing revenue having increased by 8.9 percent. Ongoing at the company’s Pest Control unit grew by 12 percent, while Hygiene saw a 7.2-percent rise. Ongoing Revenue in the group’s Protect & Enhance markets was in line with the prior-year period.

“We have had a good start to 2019 and I’m pleased with our performance in the first three months of this year,” Rentokil’s chief executive Andy Ransom commented in the statement, adding that he was “confident of another year of successful growth for the company, in line with market expectations”.

The blue-chip group further said that it had signed eight acquisitions in the first quarter, and was encouraged about its prospects for further M&S this year. The group’s guidance for  M&A spend in the current year remains between £200 million and £250 million.   

Analysts on blue-chip group

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Peel Hunt reaffirmed the FTSE 100 company as a ‘hold’ today, while lifting its target for the Rentokil share price from 345p to 381p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 374.18p.

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