Rentokil increases guidance as weak pound, disposals boost H1

Disposals and the weak pound helped pest control group Rentokil report a 637% increase in first half pre-tax profits to £592.9m.

The figure includes a net profit on disposals of £462.5m. Adjusted profit before tax excluding the divestments at actual exchange rates was £126.3m.

The collapse of the pound after the Brexit referendum last June added £9m, Rentokil said.

Ongoing revenues rose 28.4% to £1.05bn. The interim dividend was lifted 15.2% to 1.14p a share.

Chief exec Andy Ransom said the improved performance had led the company to increase guidance for revenue, profit and cash delivery over the medium term.

“We are a stronger and more focused business going forward, operating in higher growth markets, with improving levels of organic growth, reduced capital intensity and high levels of cash generation,” he said.

"Prospects in the majority of our markets are good and, while conditions in France remain difficult, we are confident of meeting our expectations for 2017."