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Rentokil Initial Lifts FY20 Forecast For Adj. PBTA; Buys Environmental Pest Service

Pest control firm Rentokil Initial Plc. (RTOKY.PK,RTO.L) Friday said it now expects the final outcome for the year 2020 to be slightly above the top end of the range of current market expectations for adjusted PBTA.

The Company-compiled current range of analyst forecasts for adjusted PBTA for 2020 is 292 million pounds to 337 million pounds.

The company previously indicated that full-year result would be at least in line with expectations.

In its trading statement, the company said trading across both Hygiene and Pest Control categories has continued to be strong in the fourth quarter, primarily reflecting continued strong sales from one-off disinfection services.

Andy Ransom, Chief Executive, said, "Despite the impact of COVID-19 on our business in 2020, we have exited the year in a strong position, with the trading momentum of Q3 continuing throughout Q4 and with an excellent overall delivery of M&A, which significantly accelerated as the year drew to a close."

Further, Rentokil Initial announced the acquisition of Environmental Pest Service or EPS, a full-service, commercial and residential pest control company based in Tampa, Florida. The consideration for EPS was paid at the beginning of January 2021.

EPS, which employs about 640 people, generated annualised revenues of about $82 million in 2020. It has two brand names, Arrow Environmental and Bug Out.

The company has also acquired a further eight high quality pest control companies in North America in the fourth quarter, with combined annualised revenues of about $62 million.

For the full year 2020, the company acquired 23 new businesses, with annualised revenues of over 150 million pounds, for a cash spend of about 180 million pounds.

Rentokil Initial will announce its 2020 Preliminary results on March 4.

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