Rentokil shares open down despite rise in revenue and profit

 
Joe Hall
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Rentokil gobbled up bugs and new businesses this year (Source: Getty)
Rentokil shares opened four per cent lower this morning, even after the company reported a rise in revenue in the third quarter.
The pest control company’s revenue jumped 3.3 per cent to £439m for the quarter, compared to the same period last year, while profit before tax rose 16.7 per cent to £48.8m.
Chief executive Andy Ransom said he was “pleased” with the revenue growth, but his smile may have settled as markets opened.
Just like the roasted locusts and worm burgers at a City event hosted by the pest control company this year, Rentokil has gobbled up a number of new business in 2014.
The FTSE 250 listed company said its new businesses recorded combined annual revenues of around £40m in the 12 months prior to acquisition.
Rentokil’s chief executive, Andy Ransom, said:
I am pleased to report that the business maintained the recent level of revenue growth in the quarter with the pest control category continuing to perform well in our emerging and growth quadrants.
Profit growth in the quarter continues to reflect the benefit of more efficient businesses and reduced overheads and has been achieved despite the challenging European trading conditions. We continue to execute our strategy at pace, to drive improved revenue, profit and cash, and we expect fourth quarter operating performance to be in line with the third quarter.

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