Rentokil Initial PLC (LSE:RTO) was a big faller after its interim results showed progress in North America, a key area of investor concern after it caused last year's profit warning, but management trimmed profit guidance due to extra investment.
Revenue for the pest controller rose 1.3% to £2.7 billion or 4% if currency swings are excluded, of which 2.8% was organic.
Pest Control grew 2.2% organically, with North America, which represented 60% of revenue last year, up 1.0%, easing from the 1.5% in the first quarter.
Profit before tax for the first six months of 2024 increased by 1.8% to £383 million, or 6.1% if currency swings are ignored.
The dividend was increased 15% to 3.16p.
"We are encouraged by the positive quarterly momentum in our US pest control business in H1 and anticipate further improvement through H2," CEO Andy Ransom said.
He said organic revenue in North America would be within the lower end of the guided 2-4% range for the full year.
A net $15 million (£12 million) revision is expected to be made to group adjusted operating profit for the full year to reflect the additional growth investment in the second half.
Analysts at Peel Hunt said: "Questions remain about Rentokil’s continued underperformance against leading competitor Rollins (which delivered 7.7% organic growth in 2Q)."