REG - Rentokil Initial PLC - Trading Update (unaudited)

Rentokil InitialAnnouncement

28/01/2025 07:00

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RNS Number : 8660U  Rentokil Initial PLC  28 January 2025

This announcement contains inside information

 

 

28 January 2025

 

Trading Update (unaudited)

 

FY 2024 results in line with expectations; North America change of management

 

Rentokil Initial plc (LON: RTO, NYSE: RTO) ("the Company" or "the Group"), is
pleased to report that it traded in line with market expectations for the full
year ending 31 December 2024. The Company also announces that Brad Paulsen
will be leaving the Group in April 2025 to pursue a new opportunity.

 

Trading

 

In Q4 2024, North America Organic Revenue growth was 2.3% (Q3 2024: 1.4%),
with Organic Revenue growth in North America Pest Control Services of 1.5%,
supported by improved momentum in inbound lead flow from our marketing
initiatives. Group Organic Revenue growth in Q4 2024 was 3.0%.

 

FY 2024 North America Adjusted Operating Margin, Group Adjusted Operating
Margin and Group Adjusted PBTA were also in line with prior guidance.

In North America, our integration is continuing to plan. Q4 pilots of new
satellite branches, new technician and sales pay plans, and first re-routing
and re-branding activities were delivered to plan.

Further information on the Group performance and outlook will be provided at
the scheduled Preliminary Results announcement on 6 March 2025.

 

North America change of management

 

The Company also announces that Brad Paulsen has decided to step down from his
position as CEO of North America. Brad will be leaving the Company to pursue a
new opportunity at a US publicly listed company in the building materials
sector. To ensure a smooth transition, Brad will remain with the Company until
April. The Company wishes Brad well for the future and thanks him for his
contributions to the business.

 

The Company is delighted to confirm that Alain Moffroid, Chief Commercial
Officer, is being appointed Interim North America CEO. Alain joined Rentokil
Initial in 2013 from Unilever where he was VP Customer Development, covering
Asia, Pacific, Africa & Russia. After initially serving at Rentokil
Initial as Managing Director, Pacific he subsequently became Managing
Director, Europe in September 2019. He was appointed Chief Commercial Officer
in April 2024.  He is a highly experienced leader in the Company with
extensive experience of both residential and commercial pest control and is
currently working closely with the North American business on its customer
experience and retention, digital and innovation programmes. He will join the
North American business in the coming weeks.

 

For further information, please contact:

Investors / Analysts: Peter Russell, Rentokil Initial plc, +44 7795 166 506

Media: Malcolm Padley, Rentokil Initial plc, +44 7788 978 199

 

 

Cautionary statement

 

In order, among other things, to utilise the 'safe harbour' provisions of the
U.S. Private Securities Litigation Reform Act of 1995 (the "PSLRA") and the
general doctrine of cautionary statements, Rentokil Initial plc ("the
Company") is providing the following cautionary statement: This communication
contains forward-looking statements within the meaning of the PSLRA. Forward
looking statements can sometimes, but not always, be identified by the use of
forward-looking terms such as "believes," "expects," "may," "will," "shall,"
"should," "would," "could," "potential," "seeks," "aims," "projects,"
"predicts," "is optimistic," "intends," "plans," "estimates," "targets,"
"anticipates," "continues" or other comparable terms or negatives of these
terms and include statements regarding Rentokil Initial's intentions, beliefs
or current expectations concerning, amongst other things, the results of
operations of the Company and its consolidated entities ("Rentokil Initial" or
"the Group), financial condition, liquidity, prospects, growth, strategies and
the economic and business circumstances occurring from time to time in the
countries and markets in which Rentokil Initial operates. Forward-looking
statements are based upon current plans, estimates and expectations that are
subject to risks, uncertainties and assumptions. Should one or more of these
risks or uncertainties materialise, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated or
anticipated by such forward-looking statements. The Company can give no
assurance that such plans, estimates or expectations will be achieved and
therefore, actual results may differ materially from any plans, estimates or
expectations in such forward-looking statements. Important factors that could
cause actual results to differ materially from such plans, estimates or
expectations include: the Group's ability to integrate acquisitions
successfully, or any unexpected costs or liabilities from the Group's
disposals; difficulties in integrating, streamlining and optimising the
Group's IT systems, processes and technologies, including artificial
intelligence technologies; the Group's ability to attract, retain and develop
key personnel to lead the Group's business; the availability of a suitably
skilled and qualified labour force to maintain the Group's business; cyber
security breaches, attacks and other similar incidents, as well as disruptions
or failures in the Group's IT systems or data security procedures and those of
its third-party service providers; inflationary pressures, such as increases
in wages, fuel prices and other operating costs; weakening general economic
conditions, including changes in the global job market, or decreased consumer
confidence or spending levels especially as they may affect demand from the
Group's customers; the Group's ability to implement its business strategies
successfully, including achieving its growth objectives; the Group's ability
to retain existing customers and attract new customers; the highly competitive
nature of the Group's industries; extraordinary events that impact the Group's
ability to service customers without interruption, including a loss of its
third-party distributors; the impact of environmental, social and governance
("ESG") matters, including those related to climate change and sustainability,
on the Group's business, reputation, results of operations, financial
condition and/or prospects; supply chain issues, which may result in product
shortages or other disruptions to the Group's business; the Group's ability to
protect its intellectual property and other proprietary rights that are
material to the Group's business; the Group's reliance on third parties,
including third-party vendors for business process outsourcing initiatives,
investment counterparties, and franchisees, and the risk of any termination or
disruption of such relationships or counterparty default or litigation; any
future impairment charges, asset revaluations or downgrades; failure to comply
with the many laws and governmental regulations to which the Group is subject
or the implementation of any new or revised laws or regulations that alter the
environment in which the Group does business, as well as the costs to the
Group of complying with any such changes; termite damage claims and lawsuits
related thereto and associated impacts on the termite provision; the Group's
ability to comply with safety, health and environmental policies, laws and
regulations, including laws pertaining to the use of pesticides; any actual or
perceived failure to comply with stringent, complex and evolving laws, rules,
regulations and standards in many jurisdictions, as well as contractual
obligations, including data privacy and security; the identification of a
material weakness in the Group's internal control over financial reporting
within the meaning of Section 404 of the Sarbanes-Oxley Act; changes in tax
laws and any unanticipated tax liabilities; adverse credit and financial
market events and conditions, which could, among other things, impede access
to or increase the cost of financing; the restrictions and limitations within
the agreements and instruments governing our indebtedness; a lowering or
withdrawal of the ratings, outlook or watch assigned to the Group's debt
securities by rating agencies; an increase in interest rates and the resulting
increase in the cost of servicing the Group's debt; and exchange rate
fluctuations and the impact on the Group's results or the foreign currency
value of the Company's ADSs and any dividends. The list of factors presented
here is representative and should not be considered to be a complete statement
of all potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realisation of forward-looking
statements. The Company cautions you not to place undue reliance on any of
these forward-looking statements as they are not guarantees of future
performance or outcomes and that actual performance and outcomes, including,
without limitation, the Group's actual results of operations, financial
condition and liquidity, and the development of new markets or market segments
in which the Group operates, may differ materially from those made in or
suggested by the forward-looking statements contained in this communication.
Except as required by law, Rentokil Initial assumes no obligation to update or
revise the information contained herein, which speaks only as of the date
hereof. Additional information concerning these and other factors can be found
in Rentokil Initial's filings with the U.S. Securities and Exchange Commission
("SEC"), which may be obtained free of charge at the SEC's website, http://
www.sec.gov, and Rentokil Initial's Annual Reports, which may be obtained free
of charge from the Rentokil Initial website, https://www.rentokil-initial.com.
No statement in this announcement is intended to be a profit forecast and no
statement in this announcement should be interpreted to mean that earnings per
share of Rentokil Initial for the current or future financial years would
necessarily match or exceed the historical published earnings per share of
Rentokil Initial. This communication presents certain non-IFRS measures, which
should not be viewed in isolation as alternatives to the equivalent IFRS
measure, rather they should be viewed as complements to, and read in
conjunction with, the equivalent IFRS measure. Non-IFRS measures presented
include Organic Revenue Growth, Adjusted Operating Profit and Adjusted PBTA.
The Group's internal strategic planning process is also based on these
measures, and they are used for incentive purposes. These measures may not be
calculated in the same way as similarly named measures reported by other
companies.

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