Rentokil Initial Plc has declared an interim dividend payment of 3.16p per share amounting to £80m payable on 16 September 2024 to shareholders on the register at close of business on 9 August 2024. The last day for DRIP elections is 23 August 2024. They have a progressive dividend policy and will consider the level of growth for 2024 based on the year-end results.
Other financial highlights include:
- Revenue up 4.0% and up 1.3% on a statutory basis. Organic Revenue growth of 2.8%
- Early progress in North America growth plan with 50bps quarter-on-quarter improvement in Pest Control services organic growth (1.0% in Q1, 1.5% in Q2).
- Within Group business categories, Organic Pest Control up 2.2% (5.7% excluding North America), Hygiene and Wellbeing up 4.4%, France Workwear up 7.5%
- Adjusted Operating Profit up 4.7% and Statutory Operating Profit up 5.6%. Group Adjusted Operating Margin up 10bps to 16.5%
- North America Adjusted Operating Margin up 10bps to 18.6%, slightly ahead of guidance
- Terminix integration on plan with first branch integrations advancing. $162m gross and $105m net cost synergies delivered to date: $58m gross and $23m net in H1 24
- Free Cash Flow of £172m impacted by working capital balances at period end, expected to unwind in H2
- Net Debt to EBITDA leverage flat at 2.8x, on track towards target range of 2-2.5x
- 23 acquisitions completed in H1 2024 with annualised revenues of c.£81m
