Rentokil Initial PLC (LSE:RTO) shares jumped 10% on Thursday morning as the pest controller backed its outlook for the full year and said it was encouraged by improved momentum in its North American business.
Revenues in the first half of 2025 were up 3.1% at $3.36 billion, though adjusted profit before tax declined 8.7% to $418 million, with margins down 120 basis points to 15.2%.
Organic growth reached 1.6%, with North America at 1.1% and International at 2.7%. North America organic growth improved to 1.4% in the second quarter, up from 0.7% in the first.
“We delivered a solid first half performance, in line with expectations,” said chief executive Andy Ransom, also highlighting a strong free cash flow performance, with conversion of 93% versus guidance of 80%
He added: “While it is still early, we are encouraged with our progress, with residential and termite lead flow growing in June for the first time this year, up 6.6%.”
The interim dividend was maintained at 4.15 cents per share. The group confirmed its outlook for 2025, expecting results in line with market expectations.