Pest control and cleaning company Rentokil Initial Plc (RTO.L) reported third-quarter pre-tax profit that more than doubled, boosted by the turnaround programme in the UK Pest Control business. Additionally, the company said its fourth-quarter outlook remains positive.
Third-quarter pre-tax profit from continuing operations surged 177.8%, at actual exchange rates or AER, to GBP 30.0 million from GBP 10.8 million in the prior-year period. Adjusted pre-tax profit from continuing operations, at AER, jumped 114.7% to GBP 49.6 million from GBP 23.1 million in the year-ago period.
Pre-tax profit from pro forma continuing operations, at 2008 constant exchange rates or CER, for the quarter more than doubled to GBP 24.0 million from GBP 11.1 million in the previous year. Adjusted pre-tax profit from pro forma continuing operations for the quarter was GBP 42.3 million, higher than GBP 23.3 million last year, at 2008 CER.
At AER, revenue from continuing operations for the quarter was GBP 622.6 million, up 3.6% from GBP 600.8 million in the comparable period. Revenue from pro forma continuing operations at 2008 CER decreased 3.2% to GBP 583.0 million from GBP 602.2 million a year ago.
Alan Brown, chief executive officer of Rentokil Initial plc, said, "Our operational agenda has been in full flow during Q3 and continues to deliver to expectation on service, capability, cost and especially cash."
Looking into the company's divisional performance, Textiles and Washroom Services' third-quarter revenue at 2008 CER increased 2.9% to GBP 192.9 million, primarily due to strong performance from France and the benefit of the Raywerk acquisition in Austria, made at the end of last year.
At 2008 CER, Facilities Services division posted revenues of GBP 146.1 million, down 9.3% from GBP 161.1 million in the 2008 period, due to a number of contract terminations, primarily in the retail sector.
City Link's revenues for the quarter dropped 9% to GBP 85.1 million, while revenue for the Pest Control division grew 4.4% to GBP 105.7 million, at 2008 CER.
Meanwhile, third-quarter revenue in Asia Pacific at 2008 CER slipped 12.1% year-on-year, partly as a result of the disposal of the water business in Malaysia and the exit of a low-margin Hong Kong government contract.
Year-to-date, pre-tax profit from continuing operations, at AER, was up 31.3% to GBP 38.2 million from GBP 29.1 million, while pre-tax profit from pro forma continuing operations, at 2008 CER, slid 21.3% to GBP 24.7 million from GBP 31.4 million a year earlier.
Adjusted pre-tax profit from continuing operations at AER was GBP 104.7 million, higher than GBP 71.2 million prior year. Also, adjusted pre-tax profit from pro forma continuing operations at 2008 CER stood at GBP 85.7 million compared with GBP 74.1 million in 2008.
At AER, adjusted profit, excluding amortisation, interest and income tax, for the year-to-date period amounted to GBP 148.8 million compared with GBP 110.3 million in the previous year.
Year-to-date revenue from continuing operations increased 5.9% to GBP 1.88 billion from GBP 1.78 billion, at AER. However, at 2008 CER, revenue from pro forma continuing operations declined 2.5% to GBP 1.75 billion from GBP 1.80 billion in the comparable period.
Additionally, the company said it expects a further quarter of good delivery in the fourth quarter, despite few signs of economic recovery in its major markets. City Link division's full-year operating loss forecast was reduced to GBP 7 million from GBP 12 million, though benefit from postal strike expected to be marginal, the company added.
The West Sussex, UK-based company noted that it would focus on its growth agenda and 'Programme Olympic', a series of initiatives targeting industry-leading service quality and the reduction of administration and overhead costs across the group, amid the challenging trading conditions.
Further, the company stated that its turnaround programme in the UK Pest Control business is gaining momentum with state of service at 99.9%. Also, customer retention continues to strengthen and the business is seeing improvements in retention of its sales and service colleagues, the company said.
Rentokil Initial is currently trading at 105.60 pence, down 6.40p or 5.71%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.