Company: RKLIF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0001654954-25-008672
Chunk: 4

Company: RENTOKIL INITIAL PLC /FI
Filing Date: 2025-07-31
Form: 6-K
Chunk 4
---
giene & Wellbeing Adjusted Operating Margin was 17.2% (H1 24: 17.2%).

Adjusted Profit before Tax of $418m, which excludes one-off and adjusting items and amortisation costs, decreased by 7.8% predominantly due to reduced profitability in North America. Adjusted interest of $98m at actual exchange rates was $15m higher year on year. One-off and adjusting items of $110m includes an increase to the provision for Termite Damage claims of $79m (H1 24:$nil), $30m (H1 24: $39m) of integration costs related to the Terminix acquisition and a net $1m (H1 24: $8m) of other M&A costs. Statutory Operating Profit was $304m (H1 24: $380m) with the decrease principally due to the $79m increase to the provision for Termite Damage claims. Statutory profit before tax was $216m (H1 24: $294m).

#### Cash Flow
Cash generation continues to be an important priority with a strong focus on operational cash conversion as well as a disciplined approach to working capital management, yielding improved results in the half year.

Net cash flows from operating activities were $412m. Free Cash Flow of $282m was $67m higher than in H1 24 due to an improved working capital performance. The $66m (H1 24: $5m) one-off and adjusting items is predominantly the increase in the provision for Termite Damage claims, offset by deferred consideration releases.

The Group had a $51m working capital outflow in the first six months of the year, an improvement of $64m compared to the comparable period. The movement on provisions of $40m predominantly reflects the increase in the provision for Termite Damage claims. Capital expenditure of $89m was incurred in the period (H1 24: $89m), with lease payments at $90m, compared to $87m in the prior period.

Cash interest payments of $106m were $25m lower than in the prior year, principally reflecting changes in timing of bond interest payments. Cash tax payments for the period were $43m, an increase of $7m compared with the corresponding period last year. Adjusted Free Cash Flow Conversion was 93%, ahead of guidance.

Cash spend on current and prior year acquisitions was $70m, dividend payments were $198m and the cash impact of