Rentokil increases 2012 final dividend by 7.5%

DividendMax Ltd.

Rentokil increases 2012 final dividend by 7.5%

Revenue and profit improvement in all divisions despite market challenges: 

- Group revenue +2.8%, +0.8%* organic

- Asia revenue +6.2%, City Link +4.8%, Pest Control +2.8%**, Textiles & Hygiene +2.5%, Initial Facilities +3.8%*

- Acquisitions performing well, contributing 2.4%, net £61m, of revenue growth

- A strong finish to 2012, Q4 adjusted profit before tax up 15.9%, FY +10.1% 

Expansion of Rentokil Pest Control footprint through acquisition of Western Exterminator and bolt-ons in North, Central, South America and Middle East

Solid performance from Textiles & Hygiene in tough conditions

Strong performance from Asia (notably Malaysia, China and India)

Good progress from City Link: volumes +17% year on year; losses reduced by £5m of which £4m in Q4

Initial Facilities transition from cleaning to Total Facilities Management moving rapidly

Cost savings of £59m (vs. target £50m); target for 2013 £50m

Final dividend up 7.5% to 1.43p (2011: 1.33p) for full year total of 2.10p

 

Alan Brown, Chief Executive Officer of Rentokil Initial plc, said:

"Rentokil Initial finished the year strongly, with adjusted profit before tax up 15.9% in Q4 and 10.1% for 2012 as a whole at constant exchange rates. These results were broad based, with every division improving both revenue and profit.  Furthermore, we increased organic revenue growth by 1.3% from negative 0.5% to positive 0.8% (excluding Initial Facilities Spain) despite difficult market conditions for our largest businesses.

"Our organisation has matured considerably in the past 24 months with global leadership established for major business functions including Marketing & Innovation. This has enabled us to evolve to an integrated country-based operating model with central and regional support. 

"While we remain mindful of continuing tough conditions across many of our markets, the operational changes we made during the year, together with the acquisition of Western Exterminator in December, give us confidence that 2013 will see us sustain the momentum we achieved in the final quarter of 2012." 

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