Rentokil increases its 2014 full year dividend by 12.1%

DividendMax Ltd.

Rentokil increases its 2014 full year dividend by 12.1%

Strong revenue, profit and cash performance in Q4

·      £93m improvement in free cash flow at £129m at AER

·      Accelerated M&A execution: 30 bolt-ons (23 in pest), combined annualised revenues of £66m at AER

·      Proposed 12.1% increase in dividend year on year

·      £260m reduction in net debt - lowest net debt in 15 years; net debt to EBITDA 1.9x

·      Strong pension fund position - in actuarial surplus by over £50m   

·      Solid first year performance towards medium-term targets despite ongoing market challenges in parts of Europe

 

Commenting on the results for 2014 Andy Ransom, CEO of Rentokil Initial plc, said:

"This time last year we set out our new differentiated strategy and introduced medium-term targets for mid-single digit revenue growth, high-single digit profit growth and a significant improvement in cash generation.  We have implemented our strategy with pace and one year on we have delivered ongoing revenue growth of 3.6%, ongoing profit growth of 6.5% and a £93m improvement in free cash flow.  I am encouraged by our performance in 2014 and by the progress we are making towards these targets.   

"While prospects in the majority of our key markets are good, conditions in parts of Europe remain challenging.  Notwithstanding this, we are confident of making further progress in the coming year."

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