Rentokil’s growth impresses despite disposal charge

RENTOKIL boss Alan Brown impressed investors with his final set of results yesterday, which sent shares in the pest-killer up more than six per cent. 

 

The FTSE 250 firm said half-year revenues rose 3.7 per cent at constant currency to £1.17bn, while adjusted pre-tax profit was up 1.8 per cent at £87.66m. 

 

A £39m hit from the disposal of loss-making courier City Link, sold for £1 to Better Capital in April, meant overall profit fell 19.5 per cent to £51.9m.

 

Brown, who steps down as chief executive on 1 October, said the firm “has done a lot of work [on consolidation] over the last four to five years that’s starting to come through”.

 

He expects the firm to continue expanding in new markets and simplifying its structure. He has given successor Andy Ransom “a list of things that I would do, but it’s up to him what to do next”.

 

Brown will remain on the board of Intertek as a non-executive and hopes to find an exec role at a different company. “I always said that after five or six years, it would be time for me to look for a fresh challenge,” he told City A.M. yesterday.