Shares in Rentokil Initial PLC jumped 9.2% to 464.6p on Thursday as the pest control giant reported full-year results that met or beat market expectations, helped by improving momentum in North America.
Revenue from continuing operations rose 4.4% to $6.9 billion and adjusted operating profit climbed 5.4% to $1.1 billion, both in line with the $6.9 billion City analyst consensus.
Free cash flow surged 24.5% to $615 million with cash conversion of 98% beating the company's own guidance, with net debt falling to $3.65 billion from $4 billion.
The key figure for investors was the acceleration in North American pest control, where organic revenue growth improved from just 0.1% in the first half to 2.6% in the fourth quarter, suggesting the strategic overhaul launched at the start of 2025 is gaining traction.
Chief executive Andy Ransom, who steps down this month after 12 years in the role, said there was "still more to do" but that the group's leading positions in North America and other key global markets left it "well-placed to capitalise on strong industry growth forecasts for the coming years".
A final dividend of 8.24 cents per share was declared, taking the full-year total to 12.39 cents, up 3%.
The group said it expects 2026 results in line with market expectations despite some weather disruption in North America in January and uncertainty from recent geopolitical events.
Rentokil said it remains on track to deliver a North America operating margin above 20% by 2027.