And at a 1.40 buy,my have a chance short term,only small money..

Hi all.................. a solid close today.

Seems like plenty of upside . ie ...... Gap Up! (from time of results)

More views welcome.

Cheers
Amar

This keeps on getting knocked back, but a slow climb back up to the 50 DMA looks probable, so around the 90p level at present. Current broker target is 102p, but take that with a large pinch of salt. Div date is early sept, so be interesting to see if that is maintained.

Good morning all ........

I don't really have a problem with broker targets Harry ........

But they're usually vague / reluctant with their time frame.

Cheers
Amar

There rarely is a time frame, Amar, that's what worries me.
As far as RTO goes, it looks like a scenario where most news is going to be below expectations, interims & finals, so expect the sp to get knocked back each time & then slowly rise on momentum.
I wish you luck. Keep locking in profit though as this is going to be a bit of an unpredictable ride, imo.

Harrycat, I'm sure yr right, RTO is sufferiing from worsening Retail/consumer - the Press telling us a Recession is here and the Olympic "hit" is subsiding with the military woes in Georgia occupying TV News.
When a Co has got something very wrong it will take time to rectify - and even longer to produce a recurring profit...let alone higher dividends...if it is maintained I'll be surprised - but then? This is "probably" the reason fro the fall-back along with bottom-fishers taking a modest profit in a short-time...and being grateful they've got out smiling.
This is not one of mine, but it might be, when all the Bad is wrung-out, probably Spring 2009. Are you nursing (higher) invesstments perhaps?
sp Down a bit today.

No, Not holding. Bought ages ago for the divi & then bailed out, so there by luck or judgement I have timed this one corrrectly. But worth watching, imo, to see if they can get themselves back on track. Will be interesting to see if they pay a divi next time round.

Heavily tipped in Shares Mag by chartist Simon Griffin to now reach 71p after it's recent rally. That was based on the declining 200 DMA on the 10th Feb & 61p as the target. Breakthrough is anticipated to 'obvious congestion at 71p'. Possibly worth a punt but assuming those people who trade from the chart will exit at 71p, best to get out just before.

Rentokil Initial Final Results





TIDMRTO

RNS Number : 6254N
Rentokil Initial PLC
20 February 2009

?
RENTOKIL INITIAL PLC (RTO)
PRELIMINARY UNAUDITED RESULTS FOR YEAR ENDED 31 DECEMBER 2008


+----------------------+----------------+---------+---------+-------------+---------+---------+
| Results | 2008 AER | Growth |Q4 2008 AER | Growth |
| | | | | |
+----------------------+----------------+-------------------+-------------+-------------------+
| | | AER | CER | | AER | CER |
+----------------------+----------------+---------+---------+-------------+---------+---------+
| Revenue | | 9.4% | 2.2% | GBP631.0m | 8.8% | (0.4%) |
| | GBP2,409.9m | | | | | |
+----------------------+----------------+---------+---------+-------------+---------+---------+
| Operating profit* | GBP147.6m | (41.2%) | (50.8%) | GBP40.5m | (36.7%) | (49.0%) |
+----------------------+----------------+---------+---------+-------------+---------+---------+
| Adjusted profit | GBP107.9m | (48.5%) | (60.1%) | GBP36.7m | (43.2%) | (56.0%) |
| before tax* * | | | | | | |
+----------------------+----------------+---------+---------+-------------+---------+---------+
| |
+----------------------+----------------+---------+---------+-------------+---------+---------+

Looks a sell to me.

now 79p and maintaining

From FT blog today:
"RTO LN( Rentokil ) Results 19Feb .. They last reported in Nov ... they were good results then.. and UPGRADED .. Citylink I suspect will show a big improvement ..Amazon is a very big customer !! .. Swine Flu also would have helped .. Hygiene !!! .. LTIPS cut in at 120p .. below that ..management get Zero ..
TRADING BUY HERE ... 116p .... target 130p"

Business Financial Newswire
Rentokil Initial today reported a 54% increase in adjusted profit before tax at actual exchange rates (AER) of 166.5m for the year to end-December 2009.

Operating cash flow was 317m (2008: 130m), giving a 143% cash conversion rate.

The group reported a year-on-year reduction in net debt from 1.36bn to 1.11bn.

Rentokil said there was a 5% revenue increase at AER, 2.2% decline in constant currency terms.

There were cost savings of 82m in the year, of which 54m related to the City Link busines. A further 75m cost savings are targeted for 2010.

Cleaning and pest control group Rentokil Initial passed its final dividend despite posting a strong increase in adjusted pre-tax profit and 5% revenue increase for the year to December 31.

Analyst Kevin Lapwood at Seymour Pierce said the results beat the broker's expectations but there was a longer-term question mark over revenue growth. He kept a sell stance on the stock with a 100p target price.

Rentokil, which also failed to pay an interim dividend in 2009 after a 5.9p per share full-year payout in 2008, said its decision not to pay a final dividend was taken in view of continuing economic uncertainty in its markets and its wish to strengthen the balance sheet.

Ex-divi 4th April 2012, 1.33p.

First half results:
http://www.moneyam.com/action/news/showArticle?id=4421222

First Half Highlights (at CER)

§ Group revenue +2.9% (+1.3%* organic) in challenging markets:

Ø Asia +7.5%, Initial Facilities +3.7%*, City Link +3.5%, Textiles & Hygiene +3.3%, Pest Control +3.0%**

Ø Acquisitions continue to perform well, contributing 2.1% (£27.1m) of revenue growth

§ City Link Q2 revenue up 5.3% on prior year, 18.3% reduction in Q2 operating loss. Recovery plan on track

§ Adjusted operating profit of £87.3m at AER with increased profits in Textiles & Hygiene £0.7m offset by increased central costs of £4.4m. Adjusted operating profit adversely impacted by £4.6m of foreign exchange

§ Profit before tax up 75.2% primarily due to a reduction in one-off and reorganisation costs of £5.4m and a reduction in amortisation of £11.1m

§ Cost savings of £22.1m; on track to exceed year end guidance of £50m for 2012

§ Further expansion of pest control footprint: entry into South America and the Middle East, additional bolt-ons in Canada and the US

* excluding Initial Facilities Spain, where the business is being scaled down to reduce financial exposure and has impacted group performance by 0.5%

**includes Ambius operations, post its integration into the Pest Control Division

Alan Brown, Chief Executive Officer of Rentokil Initial plc, said:

"Organic growth has continued to progress year on year, despite challenging markets in Southern Europe and softening conditions in Northern Europe, including the UK.
City Link's recovery plan is progressing in line with expectations, both in terms of financial performance and underlying action plan. We expect losses to reduce further in Q3 and for the business to be profitable in Q4.
We are pleased to announce bolt-on acquisitions in Canada, the US, Brazil, Abu Dhabi and Dubai. Our pipeline of pest control acquisitions is improving in both quality and quantity.
Our Programme Olympic capability agenda is in full swing and is being supported by the establishment of a group Marketing & Innovation function. Though central costs will increase in the short term, this investment should accelerate growth in 2013 and beyond. We anticipate that continued growth, coupled with further productivity improvement at City Link, will deliver year-on-year improvement in financial performance at constant exchange rates in Q3, and most notably in Q4 this year."

Ex-divi 12th Sept '12 (0.67p)

HSBC note today:
"Rentokil has had a solid share price performance (outperforming FTSE by 36% over the last 12 months). This is largely because of the perception that Rentokil, ex City Link losses, is worth a lot more. The market seems to take the view that if City Link, its parcel delivery service, can be sold, closed or fixed, Rentokil’s share price can only rise. A bigger, less risk-laden, multiple could be applied to earnings not dragged down by the losses of City Link. However, very few of the consensus earnings forecasts appear to assume anything less than a return to breakeven for City Link within one to two years. Indeed, they additionally assume that 32 consecutive quarters of group-wide exceptionals come to an abrupt and immediate end. In short, they assume the long-awaited turnaround is imminent.
City Link: Building a spreadsheet that shows City Link returning to profit by removing costs is easy but doing so in the real world has proven a far harder task. Our analysis suggests that even if City Link can achieve good (10%) volume growth in 2013 with inflationary pricing and sustained real falls in cost per consignment in coming years, the business may still fail to break even before 2016.
Beyond City Link, Rentokil has persistent problems elsewhere in the business, which consensus implicitly glosses over through generous SoTP multiples. It still loses too many textile and washroom contracts and suffers bouts of pricing pressure in contrast to more stable peers. We expect this could be a product of bid team structures and remuneration.
Valuation: How does one accurately use a SoTP valuation on segments so frequently containing different businesses each year, or quarter? Over the last five years the removal of ‘exceptionals’ has lifted adjusted earnings by 20%, on average. Should one really value the business excluding exceptionals? We have arrived at our target price of 77p by applying a PE multiple of 9.1x to 2014e EPS, a number which excludes exceptionals and includes City Link losses. Since our target price implies a potential return of -18.3% (including potential dividend yield) we downgrade the stock to Underweight (V) from Neutral (V).

StockMarketWire.com

Rentokil Initial booked a first-quarter pretax profit of £9.8 million, down 11.7% on the prior same period, as its revenue rose 2.7% to £644.8 million.

"We have experienced mixed trading conditions during Q1," said CEO Alan Brown in a statement.

"The early adopters of the integrated country operating model - Asia, the UK, the US & the Nordics - have all performed well, supported in North America by an encouraging start from our 2012 acquisitions," he said.

Rentokil said City Link has also improved in line with Q4 2012 performance. It separately said that City Link had been sold to BECAP12 Fund LP for £1.

Brown said the disposal of City Link enabled Rentokil to concentrate on its core international businesses in pest, hygiene and workwear.

Meantime, Rentokil said business in continental Europe had become more challenging, with strong pricing pressure particularly in flat linen.

"Restructuring is progressing in Rentokil Initial's three major workwear markets of France, Benelux and Germany. This, coupled with a strong innovation programme in H2 2013, will deliver material benefits progressively through 2013 and into 2014, which should more than offset current market pressures," Brown said.

"The combination of these initiatives, coupled with substantial acquisition benefit in Q2 and Q3, enables us to retain our previous guidance for the year, despite tough trading conditions in Continental Europe."

StockMarketWire.com
Rentokil Initial said today it has today agreed to acquire the pest control division of Green Compliance for a total consideration of £4m in cash.

There will be a £3.25m in initial consideration, with a further £0.75m payable over 12 months in line with normal contractual protections and the achievement of certain operational targets.

The Business had audited revenues of £5.0m for the year ended 31st March 2013.

The transaction is anticipated to complete on 31st December 2013.

Green Compliance said revenue from continuing business was £6.6m in the half-year to end-September (2012: £9.8m).

Operating loss (before exceptional items, share based payments and amortisation of intangibles) was £0.8m (2012: profit of £0.1m).

Net cash at bank was £0.2m versus net bank debt of £8.2m at 31 March 2013 following successful refinancing of the Group

The company had net assets of £6.6m up from £1.4m in at year end March 31st 2013.

Fire extinguisher maintenance and pest control businesses have been sold for combined gross cash consideration of £6m on £7m of combined annualised revenue.

StockMarketWire.com
Rentokil Initial confirms the acquisition of Peter Cox Property Care, a specialist in remedial property care services (wood-boring insects and damp proofing) to the domestic and commercial sectors.

It joins the Company's existing Rentokil Property Care business in the UK securing nationwide coverage and adding regional density in this growth market.

Rentokil has also acquired two pest control businesses: EcoTime Pest Control in Italy and Tropical Pest Control in the Bahamas.

EcoTime, based in Milan, represents an important density building opportunity in Northern Italy, whilst the acquisition of Tropical, a leading player in the Bahamas, sees the Company enter the Bahamian pest control market and will complement the Company's existing hygiene operations in the country.

Combined annualised revenues for the last audited period of Peter Cox, EcoTime and Tropical were approximately £24m. The deals are in line with Rentokil Initial's strategy of accelerating its M&A programme to pursue targets in higher growth markets and in areas which add local density to existing operations.

Today's announcement brings the total number of acquisitions made during 2014 to 30 (23 in pest control) with combined annualised revenues in the 12 months prior to acquisition of £66m and a total combined consideration, including deferred consideration in line with normal contractual protections and the achievement of certain operational targets, of £76m.