Rentokil (RTO) now expects a “much more significant” impact on its operations from the Covid-19 outbreak than previously expected. At the time of full-year results in February, the pest control specialist had projected just a small hit in the first quarter. But global lockdown measures are dampening activity in sectors such as the leisure industry.
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It is now withdrawing the final 3.64p dividend declared for 2019 and suspending acquisitions activity to preserve around £300m of cash. Capital expenditure this year will be reduced by at least £75m, bringing the total to below £200m, while cost-cutting aims to produce £100m of savings.
