Rentokil: Stock falls as company fails to impress while takeover rumours swirl
Rentokil shares fell over five per cent this morning after the company issued what could be described as a bland set of results.
While the company, which has been the subject of bid rumours recently, announced a 14 per cent dividend hike, the stock dropped 5.81 per cent in early trading.
On a statutory basis, revenue rose 1.3 per cent in the first six months of 2024 to £2.7bn. Pre-tax profit increased 5.6 per cent to £253m.
Investors can expect a payout of 3.16p per share, up from 2.75p the year before.
Chief executive Andy Ransom said: “We remain focused on our plans to create the world’s leading pest control company.
“The North America integration has made strong progress, with the first branch integrations and synergies delivered firmly on track. We are focused on re-accelerating organic growth in the region.”
The stock soared on Monday after the Sunday Times revealed former BT chief Philip Jansen had held talks with private equity firms over a plan that would see him installed as executive chairman of the company.
Rentokil has struggled since it was acquired by American rival Terminix in 2022, in a $6.7bn deal. It issued a profit warning in October as demand in North America faltered.
Rentokil today flagged “stronger” sales in its North American pest business, where it has pumped in around $50m (£38.8m) in investment to drive growth.
Looking ahead, the London-listed firm said: “We are encouraged by the positive quarterly momentum in our US pest control business in H1 and anticipate further improvement through H2.”