Company: RKLIF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001654954-25-008672
Chunk: 16

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 16
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 from sterling to US dollar. Within the Group's current portfolio of businesses, sterling denominated earnings, while sizeable, are a relatively small proportion of overall earnings. To reduce the potential for foreign exchange volatility in our future reported earnings, the Board determined that, with effect from 1 January 2025, the Group will present its results in US dollar.

Accordingly, to satisfy the requirements of IAS 21 The Effects of Changes in Foreign Exchange Rates, the reported results for the periods ended 30 June 2024, 31 December 2024 and 30 June 2025 have been translated from sterling to US dollar using the following procedures:

| ● | assets and liabilities denominated in non-US dollar currencies were 
 translated into US dollar at the relevant closing rates of          
 exchange;                                                           |
| ● | the trading results of subsidiaries whose functional currency was   
 other than US dollar were translated into US dollar at the average  
 rates of exchange for the relevant period, with material items      
 translated at the rate on the dates of transaction;                 |
| ● | share capital, share premium, capital reduction reserve, and merger 
 relief reserve were translated at the historic rates prevailing on  
 the date of each transaction; and                                   |
| ● | the cumulative translation reserve balance was set to nil on 1      
 January 2004, the date of transition to IFRS, and has been          
 represented on the basis that the Group has reported in US dollar   
 since that date.                                                    |

A change in presentation currency represents a change in accounting policy under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors which is accounted for retrospectively. The £/$ rates used for this exercise are: average FY2024 1.2773, HY2024 1.2658; and closing FY2024 1.2519, HY2024 1.2635.

#### 3. Accounting policies
The Group makes estimates and assumptions concerning the future. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and revisions to estimates are recognised prospectively. Sensitivities to the estimates and assumptions are provided, where relevant, in the notes to the financial statements.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are listed below:

| ● | Termite damage claim provisions - Note 13