Rentokil Initial PLC 6-K, filed Apr 20, 2023
Rentokil Initial PLC (RTO)
6-K
2023-04-20
For: 2023-04-20
View Original
Added on
April 11, 2026
About this 6-K
Rentokil Initial PLC filed this 6-K on April 20, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For
the month of April 2023
Commission File Number: 001-41524
Rentokil Initial plc
(Registrant’s name)
Compass House
Manor Royal
Crawley
West Sussex RH10 9PY
United Kingdom
(Address of principal executive office)
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1): ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7): ☐
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Q1
Trading Update dated 20 April 2023
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20 April 2023
RENTOKIL INITIAL PLC
FIRST QUARTER TRADING UPDATE
STRONG MOMENTUM CONTINUED WITH ORGANIC GROWTH OF 6.7%
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AER1
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CER
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||||
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Q1 2023
£m
|
Q1 2022
£m
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Change
%
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Q1 2023
£m
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Q1 2022
£m
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Change
%
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Revenue
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1,259
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722
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74.4%
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1,240
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754
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64.5%
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Trading in the year has started well, with reported Revenue up
64.5%, reflecting the benefit of M&A, including Terminix, and
strong Organic Revenue2 growth
of 6.7%. Including revenue from COVID disinfection business, Group
organic growth was 5.9%. The performance has been underpinned by
resilient demand and effective pricing, which has continued to
offset inflationary pressures.
Regional Overview
North America delivered a good performance, with Organic Revenue
growth of 4.9%. Strong momentum was sustained in Europe inc. LATAM,
the Group's second largest region (+12.0% Organic Revenue), Asia
& MENAT (+10.8% Organic Revenue) and Pacific (+7.5% Organic
Revenue). Even with the anticipated reduction in COVID related
medical waste services, the UK & Sub Saharan Africa region
recorded 4.4% Organic Revenue growth.
Category Overview
Our Pest Control business delivered Organic Revenue growth of 6.4%.
North America Pest Control recorded 4.9% Organic Revenue growth,
driven by a strong start to the year of c.6.0% in pest control
services for our commercial, residential, and termite customers.
This growth was partially offset by the products distribution
business, which has seen a slower start to the season contributed
to by de-stocking across a number of major accounts and adverse
weather conditions across some of our regional
markets.
Our Hygiene & Wellbeing business, supported by continued good
demand for washroom services, also performed well during the first
quarter, with Organic Revenue up 5.5% (Revenue +6.2%). France
Workwear continued its strong growth rates with Organic Revenue up
by 17.3% (Revenue +17.3%) over the period.
M&A
Delivery of the Terminix integration plan has progressed well in
the first quarter of the year and the cost synergy programme is on
track to meet full year guidance.
The Group completed 15 additional bolt-on acquisitions in the first
quarter - 12 in Pest Control and 3 in Hygiene & Wellbeing, with
combined annualised revenues in the year prior to acquisition of
c.£63m. This included the acquisition of RK
Environmental/Comprehensive Food Safety, a specialist in pest
management services and food safety audit consulting to the
commercial food industry operating in 31 US states. RK had
annualised revenues of c.$22m in the year prior to purchase,
ranking #44 on the Pest Control Technology 2022 Top 100 list. We
have built a substantial pipeline of high-quality opportunities and
remain confident in our targeted spend of c.£250m in
2023.
In March 2023, Rentokil Initial was named as one of Britain's Most
Admired Companies3 for
the quality of its products and services.
Commenting on today's trading update, Andy Ransom, Chief Executive,
said:
"I am delighted with the performance our colleagues delivered in
Q1, which demonstrates the resilience of our compounding growth
model and continued strategy execution. This performance, combined
with further progress in our value-creating M&A programme led
by the integration of Terminix, means we are well positioned for
the remainder of the year. We reiterate our 2023 full year
expectations."
Summary of financial performance (at CER)
Regional Performance
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Revenue
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Organic Revenue growth excluding disinfection
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Organic Revenue growth including disinfection
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Q1
2023
£m
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Q1
2022
£m
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Change
%
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Q1
2023
%
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Q1
2023
%
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|
|
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North America
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745
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320
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132.9%
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4.9%
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4.8%
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Pest Control
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723
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298
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142.6%
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4.9%
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4.9%
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Hygiene & Wellbeing
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22
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22
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1.0%
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4.2%
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1.0%
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Europe (inc LATAM)
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254
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211
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20.4%
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12.0%
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10.5%
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Pest Control
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120
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90
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34.2%
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11.2%
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11.2%
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Hygiene & Wellbeing
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82
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77
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6.2%
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9.9%
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5.9%
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France Workwear
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52
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44
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17.3%
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17.3%
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17.3%
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UK & Sub Saharan Africa
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94
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90
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4.5%
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4.4%
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4.3%
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Pest Control
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50
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45
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11.0%
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10.5%
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10.5%
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Hygiene & Wellbeing
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44
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45
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(1.8%)
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(1.7%)
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(1.8%)
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Asia & MENAT
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84
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77
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9.5%
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10.8%
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4.2%
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Pest Control
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62
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53
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16.8%
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11.1%
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11.1%
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Hygiene & Wellbeing
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22
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24
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(7.0%)
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9.5%
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(11.6%)
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Pacific
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61
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54
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11.9%
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7.5%
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7.5%
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Pest Control
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29
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24
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21.7%
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12.5%
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12.5%
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Hygiene & Wellbeing
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32
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30
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4.1%
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3.6%
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3.5%
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Central
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2
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2
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4.7%
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-
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-
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Total at CER
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1,240
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754
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64.5%
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6.7%
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5.9%
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Total at AER
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1,259
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722
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74.4%
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Category Performance
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Revenue
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Organic Revenue growth excluding disinfection
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Organic Revenue growth including disinfection
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|
Q1
2023
£m
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Q1
2022
£m
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Change
%
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Q1
2023
%
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Q1
2023
%
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Pest Control
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984
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510
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93.2%
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6.4%
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6.4%
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Hygiene & Wellbeing
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202
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198
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1.9%
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5.5%
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1.1%
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France Workwear
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52
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44
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17.3%
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17.3%
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17.3%
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Central
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2
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2
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4.7%
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-
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-
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Total at CER
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1,240
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754
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64.5%
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6.7%
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5.9%
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Total at AER
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1,259
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722
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74.4%
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Enquiries:
Investors / Analysts: Peter Russell, Rentokil Initial plc, + 44
7795 166506
Media: Malcolm Padley, Rentokil Initial plc, +44 7788
978199
Notes
1AER -
actual exchange rates; CER - constant 2022 exchange
rates
2Organic
Revenue growth represents the growth in Revenue excluding the
effect of businesses acquired during the year and, unless stated
otherwise, exclude COVID disinfection. Acquired businesses are
included in organic measures in the year following acquisition, and
the comparative period is adjusted to include an estimated full
year performance for growth calculations (pro forma revenue). The
Terminix acquisition is treated differently to other acquisitions
for Organic Revenue growth purposes. The full pre-acquisition
results of the Terminix business are included for the comparative
period and Organic Revenue growth is calculated as the growth in
Revenue compared to the comparative period.
3Britain's
Most Admired Companies measures
the reputation of more than 250 of Britain's largest companies
across 28 industry sectors and it has been running since 1990. The
survey is run by Echo Research with the support from academic
partners, Coventry University.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Date:
20 April 2023
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RENTOKIL INITIAL PLC
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/s/
Stuart
Ingall-Tombs
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Name:
Stuart
Ingall-Tombs
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Title:
Chief Financial Officer
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