Rentokil aquires ten targets in buying spree

Pest control and hygiene specialist Rentokil Initial said its pre-tax profit grew 6 per cent in the first quarter as it continued a brisk pace of acquisitions in emerging markets.

Rentokil have continued their expansion buying companies in Turkey, East Africa and Latin America. Picture:PA

Organic growth and cost measures also helped as profits hit £19.3 million in the three months to March.

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The group bought ten pest control businesses during the period, concentrating on markets such as Turkey, East Africa and Latin America and expects them to add £22.4m to sales by the end of the full year. The group also acquired small pest control businesses in Ireland, Italy and Spain.

Chief executive Andy Ransom said: “Profit growth in the quarter reflects the benefit of more effective businesses and reducing overheads, as well as lower restructuring and one-off costs, and we are on track to deliver a significant increase in free cash flow in 2014.

“We remain confident in making further progress in the remainder of the year.”