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Rentokil Initial PLC (LON:RTO) said it completed six acquisitions in the third quarter and has built “a substantial pipeline” of deals for the months ahead.
The FTSE 100 group said it is planning to spend at least £100mln in the second half to expand its portfolio with bolt-on targets in areas where it can build density and which have demonstrated resilience through the coronavirus (COVID-19) pandemic.
READ: Rentokil Initial shares are anticipating too much growth and UBS says ‘sell’
After a strong performance driven by COVID-19, disinfection services, the firm said demand is expected to dwindle as businesses return to normal trading conditions.
In a trading update, Rentokil chief executive Andy Ransom said he remains “hopeful” that the momentum in its core customer base will be maintained through the fourth quarter.
The cleaning products manufacturer said full-year results should be at least in line with expectations.
In the three months to September 30, 2020, Rentokil’s revenue advanced by 5% to £754mln reflecting exceptional growth in hygiene from continued high demand for disinfection services and a return to growth in pest control.
Shares rose 3% to 533.8p on Wednesday morning.
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