Company: RKLIF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001654954-25-008672
Chunk: 12

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 12
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18 businesses, comprising 16 in Pest Control and two in Hygiene & Wellbeing for a total consideration of $68m, with revenues of c.$36m in the year prior to purchase. We added eight new businesses in North America during the period with c.$18m revenues acquired, and 10 businesses in our International region (annualised revenues of c.$17m).

M&A remains relevant for our strategy for growth. We continue to seek attractive bolt-on deals, both in Pest Control and Hygiene & Wellbeing, to build density in existing and new markets. Our pipeline of prospects remains strong and our current guidance on spend on M&A for FY25 is now c.$200m.

#### Employer of Choice
Rentokil Initial is committed to being a world-class Employer of Choice, with colleague safety and the attraction, recruitment and retention of the best people from the widest possible pool of talent, being key business objectives globally.

Group colleague retention continued to rise at 87.0% (H1 24: 85.9%).

#### Financial review

#### Central and regional overheads
Central and regional overheads of $85m were up 8.5% on a constant currency basis predominantly as a result of inflationary increases.

#### Restructuring costs
With the exception of integration costs for significant acquisitions, the Group reports restructuring costs within Adjusted Operating Profit. Costs associated with significant acquisitions are reported as one-off and adjusting items and excluded from Adjusted Operating Profit. Restructuring costs of $2m were in line with the prior year.

#### Interest
Adjusted interest of $98m includes $15m of lease interest charges and a $24m offsetting reduction from the impacts of hyperinflation and net interest received. In the year, hyperinflation of $1m was $6m lower than the prior year (HY 24: $7m) due to a drop in hyperinflation in Argentina and devaluation of the Argentinian peso. Cash interest in HY 25 was $106m (HY 24: $131m), with the year on year reduction principally reflecting changes in timing of bond interest payments.

#### Tax
The income tax charge for the period on continuing operations at actual exchange rates was $52m on the reported profit before tax of $216m, giving an effective tax rate (ETR) of 24.2% (HY 24: 22%). The Group's ETR before amortisation of intangible assets (excluding computer software), one-off