Company: RKLIF
Filing Date: 2025-03-06
Form Type: 6-K
Source: 0001654954-25-002335
Chunk: 10

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-03-06
Form: 6-K
Chunk 10
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istic cost savings over multiple years is now overly subjective.

We remain confident that, from the end of 2026, when we expect integration to be complete, significant operational cost savings will be achieved, in line with initial expectations of gross synergies. Branch integration and improved route density will significantly improve technician efficiency. The post 2026 cost reduction is estimated as a $100m reduction from the 2024 spend level.

From 2027, we expect that delivery of these cost savings, together with an improved organic growth rate post integration, will allow the North American business to achieve operating profit margins above 20%. We are retiring the previous Group Adjusted Operating Margin target of greater than 19% by 2026.

Total one-time integration costs to achieve (cash and non-cash) from the start of the integration to the end of 2024 were $248m. The total remaining one-time costs to achieve in 2025 to 2026 are expected to be c.$100m.

The North America leadership team has been significantly strengthened with recent appointments:

Alain Moffroid, Interim North America CEO, appointed Feb 2025.Alain was appointed to the role in Q1 2025 after the announced departure of Brad Paulsen. Alain is a highly experienced leader in the Company with twelve years’ experience leading residential and commercial pest control businesses, together with 23 years with Unilever in senior leadership roles. As Group Chief Commercial Officer Alain has been working closely with the North American business on delivering their strategy focused on customer experience and retention, digital and innovation programmes.

Aaron Coley, Chief Financial Officer, joined Dec 2024.Aaron brings over 25 years of financial experience to the role, including 14 years as CFO for companies at various stages of transition. Most recently, he served as CFO for a transportation and logistics company listed on Nasdaq.

International

|                    |  2024 
   AER 
    £m | AER    
 Growth |  2024 
   CER 
    £m | CER    
 Growth | Organic 
 Growth  |
| Revenue            | 2,165 | 5.1%   | 2,229 | 8.2%   | 4.7%    |
| Operating          
 Profit             |   339 | -1.9%  |   346 | +0.2%  |         |
| Adjusted Operating 
 Profit             |   420 | 2.9%   |