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Rentokil's full-year profit falls 24 percent on acquisition, restructuring costs

Rentokil's full-year profit falls 24 percent on acquisition, restructuring costs

Rentokil Initial PLC, the world's largest pest control company, said Thursday that full-year profit dropped 24 percent after the company spent money restructuring some parts of the business and made acquisitions.
Net income in the 12 months through Dec. 31 fell to 247.1 million pounds (US$482.9 million; euro367.5 million), from 324.4 million pounds in the previous year, the company said in a statement. Revenue rose 13 percent to 2.1 billion pounds (US$4.1 billion; euro3.1 billion).
Fourth-quarter pretax profit fell 16 percent to 45.8 million pounds (US$89 million) from 54.7 million pounds in the year-ago period, the company said. Revenue climbed 18 percent to 599 million pounds (US$1.2 billion; euro890.9 million).
British companies are not obliged to report quarterly net income figures.
During the year, the company made over 70 acquisitions at a cost of 418 million pounds (USS$816.8 million; euro621.7 million). At the same time, Rentokil has been disposing of its manned guarding and other smaller businesses for a total 144 million (US$281.4 million; euro214.2 million).
"Textiles and washroom services continued to face challenges in both continental Europe and the U.K., the company said
In Europe, weak demand and overcapacity has impeded the division's ability to raise prices despite higher costs. The U.K. suffered from a high level of contract terminations.
"Our profitability is starting to improve in many businesses and the full year results were in line with expectations," the company said in a statement. "We are seeking to rebalance the portfolio towards future growth."
Rentokil shares dropped 7.7 percent to 150.25 pence (US$29.36; euro22.35) on the London Stock Exchange.


Updated : 2021-10-16 12:51 GMT+08:00