The share price of Rentokil Initial (RTO) was on the fly after the pest control business reported an 11 per cent surge in first-quarter revenue at constant currencies. The majority of the group's regions enjoyed a strong start to 2016, although the North American pest control segment was the standout performer. Conditions remain tight in European markets, particularly in France - overall, the region delivered modest revenue growth in the quarter.
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Mergers and acquisitions in emerging markets formed a strong component of the growth story; Rentokil acquired 12 businesses in the quarter (nine in pest control and three in hygiene), representing combined annual revenue of £13m in the 12 months immediately prior to acquisition.
