Rentokil prelims for Full Year 2003
A Global Business Services Company
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Rentokil Initial PLC – Final Results
The information on this page is updated via a feed from the London Stock Exchange’s Regulatory News Service (RNS).
RNS Number:8374V
Rentokil Initial PLC
26 February 2004
26th February 2004
Rentokil Initial plc
Preliminary Results for the Year
to 31st December 2003
Turnover from continuing operations increased 6.9% to £2,471.1m.
Profit before Tax increased 4.7% to £408.5m, before charging £11.7m exceptional
loss on disposal of businesses.
Excellent operating cash flow up 10.8% to £269.3m.
Earnings per share, adjusted for the exceptional loss on disposal of businesses,
up 9.8% to 16.47p with basic earnings per share up 5.5% to 15.83p.
Full year dividend per share up 10.3% to 6.10p.
Strong performances in Security and Parcels Delivery.
The results for 2003 were:-
Turnover from continuing operations increased by 6.9% to £2,471.1m and by 4.8%
at constant 2003 average exchange rates. Total turnover increased by 6.3% to
£2,486.2m and by 4.1% at constant 2003 average exchange rates.
Profit before tax and exceptional loss on disposal of businesses increased by
4.7% to £408.5m and by 0.9% at constant 2003 average exchange rates. Profit
before tax after the exceptional loss on disposal of businesses increased by
1.7% to £396.8m and reduced by 2.0% at constant 2003 average exchange rates.
Earnings per share adjusted for the exceptional loss on disposal of businesses
increased 9.8% to 16.47p with basic earnings per share up 5.5% to 15.83p.
Dividend The Board has proposed a final dividend of 4.35p per share, giving a
full year dividend of 6.10p per share, an increase of 10.3% over 2002.
Segmental Commentary – Continuing Operations (at constant 2003 average exchange
rates)
Hygiene
Total Hygiene turnover grew by 2.0% to £982.5m with operating
profit down by 1.9% to £287.4m.
Hygiene Services was up by 2.0% in turnover at £758.1m and down 3.6% in
operating profit at £202.6m. Continental Europe was up 4.5% in turnover
at £486.8m, with strong performances in France and Portugal, and good
performances in Austria and Denmark but with disappointing trading in
Germany, especially within the hospital linen services division. UK
turnover was down by 3.6% at £181.9m with, as expected, a larger
reduction in operating profit from the lower turnover and increased cost
of management, operational and sales resource during the restructuring
period. Although the turnaround has been slower than expected, the new
management team, which is now in place, is implementing the major
initiatives which are expected to lead to an increase in the annualised
value of contracts towards the end of 2004. North America turnover was
down 4.6% at £6.0m whilst Asia Pacific and Africa increased turnover by
1.8% to £83.4m with excellent performances in Hong Kong and Indonesia
and good performances in Malaysia and South Korea.
Pest Control turnover was up by 1.8% at £224.4m and operating profit up
by 2.5% at £84.8m. UK turnover was up 1.7% at £70.0m and Continental
Europe was up by 2.5% at £106.0m with encouraging performances in most
countries. Asia Pacific and Africa turnover reduced by 0.6% to £32.8m
whilst North America turnover was up by 1.8% at £15.6m.
Security
Security turnover was up 7.2% at £584.0m with operating profit up by
9.4% to £58.1m, the margins improving in both electronic and guarding.
Continental Europe turnover was up 3.9% at £135.3m, with strong
performances in Belgium and France. North America h
