Last year’s £2.2bn takeover of business services company BET helpedboost half-year earnings of pest control to property services group RentokilInitial by 44%, figures out today revealed.
While the results benefited from a full six-month contribution from BET, compared with only two months in the corresponding period last year, the strong pound lopped £14.3m off profits.
That left earnings in the six months to the end of June at £193.9m.
Rentokil revealed that last year’s BET takeover, which was fiercely resisted, boosted turnover by 67% to £1.4m in the half year.
In the UK, turnover jumped by 86% with profits up 78% to £100.2m withexcellent results from hygiene and cleaning, personnel services and security,good profits from plant and distribution as well as property services, while itspest control operation showed some growth.
Continental Europe saw profits jump 24% to £44.3m. There was goodgrowth in a number of countries, helped by the group’s hygiene and cleaningbusiness.
But Rentokil Initial, headed by Sir Clive Thompson, who has successfullyachieved a 20% annual earnings target, emphasised that reorganisation in Germany produced a depressed result.
North America was another major success story with profits up 115% to £35.7m, while in Asia, Pacific and Africa, earnings were 4.5% to £30m.
Shareholders will see their interim dividend payout rise from 0.74p to 0.89pon earnings per share of 4.74p against 3.94p.
The group expressed its confidence in the future. “The board expectscontinued good growth for the full year 1997.”
PA News 21/08/97
