An influx of bedbugs is sweeping across France and the UK, causing problems for hoteliers who have been forced to throw out piles of pest-ridden mattresses. Still, there are a few companies benefitting from the infestation.
Rentokil Initial PLC (LSE:RTO) is one of them.
Due to provide a third-quarter update on Thursday which will highlight the true extent of its response to the outbreak, the pest control company said it saw a 65% jump in bedbug cases through the second quarter of its 2023 financial year.
Montlhery Paris Sud Hotel in Paris reported the presence of the insects earlier this month, and while one case every year is not abnormal, Max Malka, the owner of the venue, said he is frightened about more occurring.
He said the cost to eradicate bedbugs can be around £1,300 when hiring pest control services.
Various methods are being introduced to fight the pests, including one by a Cambridge-based tech company which created a device which fits under beds and attracts the bedbugs towards it. Upon entering the trap, AI alerts the company of the bugs and pest prevention methods can then be taken to prevent any spreading.
Bedbugs can spread within weeks Source:Planet Natural
However, Rentokil is doing things slightly differently.
Sniffer dogs are used by the London-listed firm, with professionals collecting samples from places such as a hotel bedroom before sending them back to a facility where varying breeds of man’s best friends pick out the infested samples.
Paul Blackhurst, head of Rentokil pest control's technical academy, believes that while a spike in inquiries about the bugs has been above “expected seasonal patterns”, the concern has been “slightly overblown”.
Sniffer dogs Source:News-Medical.net
"The risk of encountering bedbugs for those visiting UK venues remains low, and by taking some simple precautions when staying overnight then travellers can help to protect themselves, such as carefully examining the bed, mattress and surrounding areas for any signs of bedbugs, such as dark stains, faecal pellets, shed exoskeletons, or even live bugs,” the pest expert added.
Although the concern is likely to cause some slowdown in the hotel industry - whether it is a material reduction remains to be seen – investors of Rentokil will be hopeful the impact can provide an additional boost to earnings.
Shares in Rentokil, which opened at around 606p, are flat on Tuesday and are up around 15% in 2023.