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

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 6
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0.2% in Q1).

North America Business Services has seen positive momentum during H1, with Revenue of $400m and Organic Growth of 5.8%.

During the period we saw ongoing price inflation, particularly in relation to labour. Consequently, Adjusted Operating Margin in North America declined to 16.9% and Adjusted Operating Profit of $356m was down 7.3%. Statutory Operating Profit was $213m.

In-bound residential lead flow remained weak until April but has seen substantial improvements since then as a result of our new sales and marketing strategies, with June lead flow up 6.6%.

Customer retention improved over H124, from 79.8% to 80.5%. Technician participation in the Trusted Advisor lead programme improved to 64% (FY 24: 50%), supported by stronger alignment between Sales and Service under Field Operations leadership, helping drive improved customer engagement.

Total North America colleague retention increased 2.9ppts to 80.7% (H1 24: 77.8%).

Our North American bolt-on M&A programme continued, with the purchase of 8 businesses with combined revenues of c.$18m in the year prior to purchase. We continue to selectively pursue high quality M&A assets in the North America region.

#### Integration update
Improving our data analytics and insights is allowing us to more precisely target our underperforming branches with our new sales and marketing initiatives. Together with our integration experience, it is also helping us refine our integration plans and timelines. In H2 we will re-start integration with standalone, mainly commercial branches and complete a detailed programme of work to make process, system and execution improvements in previously migrated branches, where lead flow and customer retention are not yet at their required levels. Our expectations of the c.$100m cost reduction opportunity from the integration and attaining an operating margin in North America above 20% post 2026 remain unchanged, but our refined timelines may mean not all branches are fully integrated by that time.

We continue to achieve cost synergies in 2025, whilst also continuing our investments in salary and benefit harmonisation, safety, innovation and IT. A number of efficiency programmes are underway to deliver the c.$100m cost reduction including a headcount reduction programme during the period, procurement initiatives to benefit from purchasing scale and back-office role outsourcing.

We continue to expect total one-time integration costs to be c.$350m. This encompasses c.$250m incurred to 2024 and c.$100m