Rentokil Initial PLC (LON:RTO) was in demand as the ratcatcher beat profit expectations and predicted further upgrades for 2019.
"2018 was a very good year for Rentokil Initial and I am delighted that we have again exceeded our medium-term financial targets for revenue, profit and cash,” said chief executive Andy Ransom.
“We are confident of delivering further progress in 2019 and anticipate a slight increase in market expectations," he added.
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Rentokil spent £298.4mln cash acquiring 47 businesses in 2018.
These added combined annualised revenues of £170mln to the total of £2.46bn, a 12% rise.
Underlying profits rose by 7.4% to £308mln but the pre-tax was figure was knocked by a £342mln adjustment following the outsourcing of the company pension scheme in December.
That meant a loss before tax for the year of £114mln.
The group recommended a final dividend of 3.16p to bring the total 2018 to 4.47p, an increase of 15%.
Ransom said: “Hygiene has performed strongly, not only aided by the very good acquisitions of CWS Italy and Cannon Hygiene but organically, with a delivery of 2.8% towards the top of our range of growth expectations.
“We have a very active pipeline of high-quality prospects in place, so I am confident of another good year in 2019.”
In a note to clients, Peel Hunt analysts said: “2018 finals were 2% ahead of expectations with PBT +7%. However, Rentokil trades at a premium to other quality end-market consolidating UK Support Service companies such as Bunzl, DCC and Diploma (18-21-x 2019E P/E range).”
The broker reiterated its ‘hold’ rating with a target price of 345p.
Shares in the FTSE 100 company rose 5% to 346.5p in morning trading.