Encouraging overall performance in 2015 - ongoing revenue growth of 6.5%, with profit (+8.5%) ahead of expectations and free cash flow of £148m, well in excess of the £100m+ target for the year
Organic growth in Pest Control (+4.6%) and Hygiene (+2.3%); Workwear business (-3.2%) impacted by continued challenging conditions in France and Benelux
Increase in North America and Asia margins driving growth in group operating margin to 13.9% (2014: 13.7%)
Significant increase in M&A execution - 23 acquisitions (21 in pest) in year with combined annualised revenues of £158m
Acquisition of Steritech building scale in key North American market - annualised exit profit run-rate of $20m represents good progress towards 2016 target - integration on track
Capital allocation model working well - combined revenues in Emerging and Growth quadrants now account for 60% of group revenue
Proposed 13.1% increase in dividend
Commenting on the results for 2015 Andy Ransom, CEO of Rentokil Initial plc, said:
"2015 has been a year of further improvement at Rentokil Initial. We have continued to execute our differentiated strategy to drive profitable growth with both focus and pace. This year we have delivered ongoing revenue growth of 6.5%, profit growth from ongoing operations of 8.5% and free cash flow of £148m.
"We have also achieved a step change in the scale of our presence in Growth markets through the acquisitions of Steritech, Anderson Pest Solutions and Oliver Exterminating, cementing our position as the number three player in North America, the world's largest pest control market. We will continue to pursue high-quality pest control businesses to infill locally and build further density and margins, particularly in Emerging and Growth markets.
"Prospects in the majority of our markets are good and, while conditions in France and Benelux remain difficult, we are confident of making further progress in the coming year."
