Zest for pests: Rentokil Initial’s profits creep up after 41 acquisitions worth £107m
Rat-catcher and business services group Rentokil Initial's pre-tax profit crept up last year on the back of 41 acquisitions worth £107m.
For the year to the end of December, the FTSE 250 firm's pre-tax profit stood at £208.5m from £159m the year before. Revenue hit £2.17bn, up from £1.8bn in the previous year.
Rentokil Initial acquired 41 companies in 2016 for £107m, this included 35 pest control firms five hygiene businesses. The combined annualised revenues of all businesses it acquired was £124m.
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The group boosted its final dividend 16 per cent year-on-year to 2.38p per share, giving a total dividend of 3.37p, up 15 per cent.
Chief executive officer Andy Ransom said: "In 2016 we have continued to execute our strategy at pace. Our organic revenue growth of three per cent is at its highest level for 10 years with accelerated growth in pest control and hygiene showing continued performance momentum. In addition, we have exceeded our financial targets, growing ongoing revenues by 12.6 per cent,ongoing operating profit by 11.5 per cent and delivering £156m in free cash flow.
"Prospects in the majority of our markets are good and, while conditions in France remain difficult, we are confident of making further progress in the coming year."