Rentokil posted its FY15 results, which were broadly in line with our estimates, clocking the ongoing revenue growth of 6.5% (under constant currency; +7.7% in H2). Growth was once again driven by Pest Control (+13.1% yoy; 4.6% organic) and the Hygiene business (+2.6% yoy; +2.3% organic) as Workwear (-3.2% yoy) remained insipid. Consequently, unfavourable FX dragged down the revenue growth to 2.1% at AER (£1,759m; organic: 1.8%). The underlying operating margin slipped 90bp to 11.6%, wh
23 Mar 2016
Workwear holds back inorganic momentum
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Workwear holds back inorganic momentum
Rentokil Initial plc (RTO:LON) | 428 -83 (-4.3%) | Mkt Cap: 10,795m
- Published:
23 Mar 2016 -
Author:
Nishant Choudhary -
Pages:
3
Rentokil posted its FY15 results, which were broadly in line with our estimates, clocking the ongoing revenue growth of 6.5% (under constant currency; +7.7% in H2). Growth was once again driven by Pest Control (+13.1% yoy; 4.6% organic) and the Hygiene business (+2.6% yoy; +2.3% organic) as Workwear (-3.2% yoy) remained insipid. Consequently, unfavourable FX dragged down the revenue growth to 2.1% at AER (£1,759m; organic: 1.8%). The underlying operating margin slipped 90bp to 11.6%, wh