Rentokil Initial plc (LON:RTO) shares gained as the pest control company reported a surge in pre-tax profit in the first half.
Pre-tax profit in the six months to 30 June rose to £592mln from £80mln the same period a year ago, boosted by the disposal of businesses, including those transferred into the Haniel joint venture.
Last year the company said it was combining parts of its workwear and hygiene units 10 European countries with those of German firm Haniel to focus on its core pest control and cleaning business in growth markets.
“We’re migrating the business out of those lower growth business lines and that has enabled us to be more focused on those core markets,” said chief executive Andy Ransom.
As the changed is strategy, revenue in the first half jumped to £1.23bn from £987.1mln.
Rentokil has made 25 acquisitions at a combined £206.8mln so far this year, mostly in pest control, and Ransom said the company plans to seek further opportunities in the second half.
The group raised its interim dividend by 15% to 1.14p a share and left its full year guidance unchanged.
Shares rose 4.08% to 285.70p in afternoon trading.