Rentokil Initial PLC (LON:RTO) said it expects to top profit forecasts thanks to strong sales in its hygiene and pest control categories, driven by high demand for one-off disinfection services.
Full-year adjusted profit before tax is estimated to come in slightly above the current market expectations of £292mln-£337mln, the group said.
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However, the FTSE 100 firm said the financial outlook for 2021 inevitably remains uncertain, with limited visibility on the sustainability of one-off disinfection services, the recent strengthening of sterling, and the undetermined impacts arising from recently rising cases of coronavirus (COVID-19) globally and new and prolonged country lockdowns.
The cleaning products manufacturer also announced the acquisition of Environmental Pest Service, a full-service, commercial and residential pest control company based in Florida.
The company employs 640 people in 30 branches across four separate regions and generated annualised revenues of US$82mln last year.
In the fourth quarter to December 2020, Rentokil acquired another eight pest control companies in North America, with combined annualised revenues of US$62mln.
For the full year ended December 31, 2020, the group noted that it acquired 23 new businesses, with annualised revenues of over £150mln, for a cash spend of £180mln – which excludes the consideration for Environmental Pest Service which was paid at the beginning of January.