Rentokil Initial (RTO) Q1 2018 TU earnings summary

Executive summary

• Q1 trading started well; ongoing revenue grew 15.7% at CER, and 2018 performance was expected to be in line with market expectations.

• Organic revenue growth was 3.2%; excluding Puerto Rico, growth was in line with Q1 2017.

Financial highlights

• Ongoing revenue was £545.9m, up 10.8% AER and 15.7% CER; revenue was £550.7m, down 5.1% AER and 1.5% CER.

• Acquisitions contributed 12.5% to ongoing revenue in Q1.

Outlook and guidance

• 2018 performance expected to be in line with market expectations.

• Adverse FX impact on 2018 profit remained guided at £10m–£15m.

• M&A spend guidance remained £200m–£250m, with further value-enhancing opportunities in the pipeline.