Cleaning and pest control group Rentokil Initial has pledged to expand its hygiene division into new countries and services after seeing demand soar in the wake of the Covid-19 pandemic.
The company said the division had gone from low profile to “arguably one of the world's most important business categories” as customers seek hand sanitisers, disinfection and deep cleaning services in order to be able to continue their operations.
Rentokil's hygiene division revenues jumped 16.3% to £157.4 million in the second quarter of the year, even though it was unable to perform regular washroom services for a substantial number of customers in the hospitality and leisure sector. It has trained an additional 7,000 staff to provide disinfection services alongside their existing roles.
Having repaid the Bank of England's Covid Corporate Financing Facility, the group now expects to spend at least £100 million on acquisitions over the rest of this year.
Chief executive Andy Ransom said: “While the Covid-19 pandemic is far from over and our thoughts remain with everyone affected, at Rentokil Initial we have moved from the crisis phase into the recovery phase.”
Shares opened 5% higher today as Rentokil said it also hoped to pay a dividend for 2020, as long as trading continues in line with expectations over the rest of this year.
Half-year adjusted profits were 11.3% lower at £125.6 million, partly reflecting the impact of temporary business shutdowns on the pest control division.
Ransom said the company had started the second half of the year with positive momentum, adding that full-year expectations were moderately better than currently anticipated.
