Rentokil share price: what to expect from its Q1 results
Since October last year, the FTSE 100 company has seen its share price steadily rise and with its first quarter results coming around the corner, investors are hoping growth will continue.
When is Rentokil’s results date?
Rentokil will release its Q1 trading update on April 18
Rentokil’s results preview: what does the City expect?
At the end of 2018, Rentokil ended the year on a high with ongoing revenue climbing 13.2% and ongoing operating profit up 13.3% compared with the previous year.
A decent portion of that growth was driven organically with the pest control company posting organic revenue growth of 3.7%, which is in line with its medium-term target of between 3% to 4%.
However, the primary driver of Rentokil’s growth and steady share price rise has been its strong acquisition pipeline in 2018, with the company buying 47 businesses in growth and emerging markets with combined annualised revenue of £170 million, for a cash spend of £298.4 million.
Over the course of 2018, Rentokil acquired 42 pest control businesses, four hygiene units and one small ambius asset, with acquisitions continuing to build density across its key markets and deepening its expertise in new and high-growth areas including vector control and fumigation.
‘We have delivered a very strong year of M&A, with a record 47 high-quality acquisitions building scale and density and also enabling us to broaden our expertise in newer growth areas, such as vector control and 2 fumigation,’ Rentokil CEO Andy Ransom said.
‘We have a very active pipeline of high-quality prospects in place, so I am confident of another good year in 2019.’
With less than a week until the company provides update on its performance, investors will be interested to see how the company’s ‘Right Way’ plan is going and if it has been successful in delivering the same sort of revenue and profit growth that it was able to achieve in 2018.
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