Company: RKLIF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001654954-25-008672
Chunk: 20

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 20
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           -3 |          -18 |
| Net assets acquired             |           19 |           50 |

1. Includes $19m (2024: $51m) of customer lists and $nil (2024: $5m) of other intangibles.

Acquired receivables are disclosed at fair value and represent the best estimate of the contractual cash flows expected to be collected.

From the dates of acquisition to 30 June 2025, these acquisitions contributed $7m to revenue and $nil to operating profit (2024: $21m and $1m respectively) for continuing operations. If the acquisitions had occurred on 1 January 2025, the revenue and operating profit of the Group, including discontinued operations, would have amounted to $3,542m and $341m respectively (2024: $3,453m and $407m respectively).

The Group paid $15m in respect of deferred and contingent consideration for current and prior year acquisitions (2024: $23m), resulting in the total cash outflow in the period from current and past period acquisitions, net of $nil (2024: $1m) cash acquired, of $70m (2024: $96m).

#### 9. Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired business at the date of acquisition. It is recognised as an intangible asset. Goodwill arising on the acquisition of an associate is included in investments in associates.

Goodwill is carried at cost less accumulated impairment losses and is tested annually for impairment. For the purpose of impairment testing, goodwill is allocated to cash-generating unit (CGU) groups identified according to region of operation and reportable business unit.

At the start of the period, management reviewed its grouping of CGUs and its allocation of goodwill for the purposes of assessing impairment based on the lowest level at which the goodwill is monitored. Based on this review, management has determined that the Group now has six CGU groups. These are North America, UK & SSA, Europe, LATAM, Asia & MENAT and Pacific. The key factors considered in management's conclusion included the change in reporting segments to North America and International, to reflect the high proportion of business in the US, and the subsequent allocation of resources based on the results for each operating segment.

Before initiating the change in CGU grouping, in accordance with IAS 36, management performed a value-in-use