Rentokil’s (RTO) ongoing revenue rose 7.2 per cent at constant currencies to £631m in the first three months of the year. But a “marked impact” from the Covid-19 pandemic saw year-on-year revenue growth slow to 4.4 per cent in March. The group is guiding to greater pressure in the second quarter.
In pest control, the main sectors affected are ‘hotels, restaurants and catering’ (according to Horeca) and offices. Hygiene has been similarly hit but is seeing higher demand for products such as hand sanitisers and specialist biohazard disinfection and deep cleaning services. Rentokil sees key hygiene opportunities in the pandemic’s ‘recovery phase’ and beyond, anticipating tighter regulations and standards.
The group now has £1.2bn of gross cash having drawn down £550m from its revolving credit facility and used the Bank of England’s covid corporate financing facility.
