Business
Q3 2009 Trading Update
Q3 2009 Trading Update.
About this update from Rentokil Initial Plc
[{"type":"text","content":"\n RNS Number : 0833C Rentokil Initial PLC 06 November 2009 \n \n\n\n\nRENTOKIL INITIAL PLC (RTO)\nTRADING UPDATE FOR THIRD QUARTER ENDED 30 SEPTEMBER 2009\n\n \n\n\n\n\n\n \n \nResults \n\n\n \n \nQ3 2009 AER\n\n\n \n \nGrowth\n\n\n \n \nYTD 2009 AER\n\n\n \n \nGrowth\n\n\n\n\n \n\n\n \n\n\nAER\n\n\nCER\n\n\n \n\n\nAER\n\n\nCER\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nRevenue\n\n\n£622.6m\n\n\n3.6%\n\n\n(3.2%)\n\n\n£1,883.2m\n\n\n5.9%\n\n\n(2.5%)\n\n\n\n\nOperating profit1\n\n\n£59.8m\n\n\n53.7%\n\n\n34.9%\n\n\n£129.0m\n\n\n20.4%\n\n\n2.0%\n\n\n\n\nAdjusted profit before tax2 *\n\n\n£49.6m\n\n\n114.7%\n\n\n81.5%\n\n\n£104.7m\n\n\n47.1%\n\n\n15.7%\n\n\n\n\nOperating cash flow3\n\n\n£104.2m\n\n\n207.4%\n\n\n165.8%\n\n\n£220.9m\n\n\n206.0%\n\n\n166.6%\n\n\n\n\n \nAER - actual exchange rates; CER - constant 2008 exchange rates \n1 before amortisation and impairment of intangibles \n2 before amortisation and impairment of intangibles and one-off items \n3 cash flow before interest, tax, acquisitions, disposals and foreign exchange adjustments\n\n\n\n\n\n\nHighlights - Q3 2009 \n\nTrading conditions continue to be challenging - revenue down 3.2% at constant exchange rates \n\nAdjusted profit before tax (at actual exchange rates) more than doubled:\n\n\nFurther improvement in operations\n\n\nPrior year adversely affected by £6m bad debt provision in UK Washrooms\n\n\nBenefit from 70% Euro earnings stream as Sterling weakens\n\n\n\nContinued excellent progress on cash: \n\n\nOperating cash flow of £104.2m represents 159% cash conversion \n\n\n£125m Revolving Credit Facility retired ahead of schedule on 3 September 2009 \n\n\nCompany on track to beat Days Sales Outstanding (DSO) target for full year \n\n\n\nCity Link full year guidance - operating loss forecast reduced from £12m to £7m, though benefit from postal strike expected to be marginal\n\nEuropean Textiles and Washrooms restructuring under way: \n\n\nBelgium textiles plant consolidation commenced\n\n\nFurther initiatives under way in Spain, Switzerland, Italy and at Divisional Head Office \n\n\nCreation of new divisional Executive Suppl...