Business
Interim Management Statement
Interim Management Statement.
About this update from Rentokil Initial Plc
[{"type":"text","content":"\n \nRNS Number : 5148S Rentokil Initial PLC 08 November 2013 \n \n\n \n \n \nRENTOKIL INITIAL PLC (RTO)\nINTERIM MANAGEMENT STATEMENT\n8 November 2013\n \n\n\n\n\n (£m) \n\n\nQ3 2013\n\n\nGrowth\n\n\nYTD 2013\n\n\nGrowth\n\n\n\n\n\n\n\nAER\n\n\nAER\n\n\nCER\n\n\nAER\n\n\nAER\n\n\nCER\n\n\n\n\nRevenue\n\n\n585.1\n\n\n6.2%\n\n\n3.8%\n\n\n1,751.4\n\n\n5.6%\n\n\n3.7%\n\n\n\n\nAdjusted operating profit1\n\n\n70.8\n\n\n6.1%\n\n\n3.0%\n\n\n183.4\n\n\n6.9%\n\n\n4.3%\n\n\n\n\nAdjusted profit before tax2\n\n\n56.0\n\n\n1.1%\n\n\n(1.8%)\n\n\n143.6\n\n\n2.3%\n\n\n0.4%\n\n\n\n\nProfit before tax\n\n\n43.6\n\n\n6.1%\n\n\n3.1%\n\n\n95.5\n\n\n(9.0%)\n\n\n(10.4%)\n\n\n\n\nOperating cash flow3\n\n\n50.4\n\n\n\n\n\n\n\n\n36.6\n\n\n\n\n\n\n\n\n\n\n \nCommenting on the group's Q3 trading update, Andy Ransom, new Chief Executive Officer of Rentokil Initial plc, said: \n \n\"I am encouraged by our core businesses' improvement in organic revenue growth in Q3, despite the difficult trading conditions in Europe and the Netherlands in particular. We expect trading conditions and business performance to remain largely unchanged over the remainder of the year.\n \n\"As we approach the end of a major restructuring and investment programme, my focus is now on converting this into improved profitability and cash generation. Our overheads are coming down, our businesses are becoming more efficient and during next year our restructuring costs and capex will also reduce. I will provide further detail on my plans to deliver sustainable revenue and profit growth and increased free cash flow at the year-end results.\"\n \nRevenue (at CER) \n \nRevenue grew by 3.8%, largely reflecting the contribution from the Western acquisition with North America up 45.7% (£29.0m). Organic revenue in the core business rose by 1.0%, despite ongoing challenging trading conditions in Europe, reflecting solid performances from all geographies in the West region, as well as in France and Asia. \n \nRevenue in IF declined by 5.9% due to the planned withdrawal from single-site contracts in the UK, lower job revenues in technical services and delays in the award of anticipated new contracts over the summer. £2...