Rentokil revels in spiralling profit powered by pest control business
Rentokil has rebounded from the pandemic with an 17.9 per cent boost in operating profits, which have soared to £346.5m for the full year.
The company’s stellar performance has been powered by a 18.6 per cent growth in its pest control business and an 8.2 per cent rise in its core hygiene operations.
It has also contributed to a 5.5 per cent rise in overall revenues, which are now losing in on £3bn (£2.96bn).
The group has also reported free cash flow totalling £326.5m, alongside 52 acquisitions for the year – enough for one every week.
This includes 17 in North America, such as Terminix, which it acquired last December in a pricey £5bn deal, as it looks to expand into the US market.
Andy Ransom, chief executive of Rentokil, said: “The last two years have been challenging, but we have proved that we can both adapt and grow the business. With the worst of the pandemic hopefully behind us, and by building further on the momentum of 2021 in our core businesses, we are confident of delivering further good progress in the year ahead.”
Alongside the headline figures, Rentokil has recommend a final dividend of 4.3p, bringing its total 2021 dividend to 6.39p, which is an 18 per cent boost on last year.
Steve Clayton , fund manager at HL Select, said: “Overall, Rentokil look well set for the year ahead. Completion of Terminix will give the key US Pest division a material scale boost and the potential for eliminating overlaps in the networks and raising efficiencies looks strong. Few companies in the UK market can offer the visibility of growth that Rentokil possesses and with the Pest division’s reliable revenues set to form an ever greater proportion of the group, we expect this visibility to further improve over time.”