tejo
24 Feb 2017
Results I think that the results demonstrate the continued recovery strategy is working well and that the company continues to be an attractive investment with considerable further growth to com.
latife
23 Feb 2017
results Results sound good, so hoping to see the share responds????
II Editor
21 Feb 2017
NEW ARTICLE: A £4bn ISA candidate "RENTOKIL (LSE:RTO)Our ISA candidate commentary continues and we're looking at LSE:RTO:Rentokil. Needless to say, the inspiration (yet again for RTO) came from a mouse. A habit of leaving the office outside door ajar to stop the dogs playing the ..."[link]
II Editor
20 Feb 2017
NEW ARTICLE: Trends and Targets for 21/02/2017 " RENTOKIL (LSE:RTO) Our ISA candidate commentary continues and we're looking at Rentokil. Needless to say, the inspiration (yet again for RTO) came from a mouse. A habit of leaving the office outside door ajar to stop the dogs playing the "can ..."[link]
tejo
07 Dec 2016
Fall explained, maybe I have been puzzled by the recent fall in the sp since there is no obvious reason. A possible explanation is to-days news of the large selling by Schroders. Now that is out of the way, the sp may recover, provided, of course, Schroders do not sell off the rest of their holding. Shares still look very attractive to me.
tejo
20 Oct 2016
Q3 trading update Ever since the new management was installed, Rentokil has progressed and looked an increasingly attractive investment. Its expansion in the US, especially in the bug ridden states like Florida will do nothing but good. I have slowly increased my holding and plan to add further A firm buy imho
nk1999
18 Aug 2016
Barclays view Picks RTO as 1 of 4 M&A plays:"4 shares to benefit from M&A drive Harriet Mann | Thu, 18th August 2016 - 15:18 In times of cheap money and slow GDP growth, companies look to drive earnings through mergers and acquisitions (M&A). It's nothing new, the strategy can enhance shareholder value and justify the premium valuations some companies can subsequently surge to. Barclays has trawled through its coverage and picked four companies which could unlock real earnings power.Highlighting the attractiveness of clear M&A strategies, strong management teams with good track records and the importance of end markets with scope for further consolidation, the investment bank picks Bunzl (BNZL), DCC (DCC), Diploma (DPLM) and Rentokil (RTO).Support services firms have already performed well this year and trade in the top-end of their sector, so potential for a significant surge in value is limited."Further share price upside more likely to come from earnings growth," says analyst Jane Sparrow. "In the case of Rentokil, we see a stronger argument for further multiple expansion as pest control continues to become a larger part of the business and European workwear reduces."Here's why the four shares are well-positioned to benefit.BunzlIf Bunzl, an £8 billion distribution firm, maintains its £300 million average acquisition spend from 2012-2015, Barclays reckons earnings could grow by 8% at a compound annual growth rate.Still, this could already be priced into the group's premium price/earnings (PE) valuation of 24 times, so Barclays holds on to its 'equal weight' rating. Changing hands for 2,411p, Barclays upgrades its share price target by 23% to 2,450p.DCCDCC has the most to gain from a successful M&A strategy, especially as oil majors flog assets, with financing already in place and a record of successful integrations behind it. The fuel distributor could underpin a double-digit earnings per share compound annual growth rate (CAGR) if it continues its average annual £110 million spend from 2018-2015."Given the step-up in the scale of acquisitions in the last two years, we would be surprised if the actual acquisition outlay wasn’t higher than the historical average," says Barclays.Upgrading its target price by 47% to 7,800p, Barclays has pushed its rating to 'overweight'. At 6,990p, the shares have 12% upside and trade on 24 times forward earnings.DiplomaWith a record of delivering both organic and acquisitive growth that would turn most companies a healthy shade of green, Diploma's targeted annual £25 million spend could accelerate earnings growth by 3-4% each year for the next five.The supplier of medical devices and electronic components' 'overweight' rating has been downgraded to 'equal weight', however, with limited share price upside, headwinds in each of its three sectors and lumpy conversion of its acquisition pipeline. Still, this is more than likely reflected in the 830p share price.RentokilThere's not much room for any killer acquisitions on the balance sheet, but there's certainly potential for the pest control giant to enhance organic growth with attractive bolt-ons. If management side-lines £80 million a year for this them, they could add 3% to annual earnings. Barclays reckons the shares are worth 238p, implying 9% upside."
nk1999
09 Aug 2016
Credit Suisse From ADVFN:"Credit Suisse raised its target on Rentokil to 235p from 225p on Tuesday and reiterated an 'outperform' rating for the pest control business.The Swiss bank lifted its earnings per share estimates on Rentokil for fiscal years 2016-2018 by 3-5%, reflecting foreign exchange benefits, a lower tax rate and lower interest charge."We think that a stable set of core businesses (notably Pest Control and Hygiene) and strong cash generation will allow it to continue to reinvest excess cash into M&A, particularly in the Pest Control division," said Credit Suisse.Pest Control now accounts for over 50% of revenues, including the recent acquisition on Residex.Credit Suisse also believes Rentokil could take market share in the North American market as it benefits from its scale and brand relative to the numerous smaller operators and deepens its penetration within the National Accounts market."As market share grows we expect the underlying business to continue to grow margins."nk
nk1999
12 Jul 2016
RBC Cap fROM advfn:"Things were still looking up for Rentokil despite the strong run which the shares had enjoyed year-to-date, which had seen them outperform the Footsie by 23%, analysts at RBC said.Following recent movements in foreign exchange markets and acquistions by the company the broker bumped up its estimates for the company´s earning per share in 2016 and 2017 by 3.0% and 6.0%, respectively.The rate of growth in organic revenues would be slightly lower over the three months to June than the 6.4% clip reported for the first quarter, analysts Andrew Brooke said in a research report published on 11 June.Nevertheless, Brooke expected the other main trends at the pest control specialist to be unchanged.He also expected confirmation that the synergies arising from the purchase of Steritech were on track.Brooke highlighted five aspects of the company: Its potential for organic growth, signicant potential to continue growing its margins, improving mix, possible corporate actions and the firm´s sensible strategy.More specifically, the analyst saw potential for Rentokill to improve its margins by more than 300 basis points over the next five years.The same analyst also believed that there remained "significant scope" for mergers and acquisitions, "which should help drive customer density. In addition, we would not rule out a sale of Workwear at some point."NK
II Editor
20 Apr 2016
NEW ARTICLE: Rentokil chased to 9-year high "LSE:RTO:Rentokil was one of the stockmarket's glamour stocks during the 1990s. Not bad for the pest control firm dubbed the "royal rat-catcher". It all went wrong following the hostile takeover of a larger rival and boss Sir Clive Thompson's ..."[link]
ianianf
18 Mar 2016
recent rise While the rise is very welcome any ideas why it is happening?
nk1999
14 Aug 2015
BofA Merrill Lynch From ADVFN:"Bank of America Merrill Lynch raised its price target on Rentokil to 175p from 150p as it maintained its 'buy' rating on the stock. "We think Rentokil could look like a very different business in 3-5 years' time," the bank said.It sees potential for the company to materially refine and improve its business model through organic growth, exiting certain operations and investing the proceeds to build out in others.It said that if executed well, this transformation strategy could create substantial value for shareholders, from both higher earnings and a higher multiple. "Our analysis suggests that paring down the portfolio and reinvesting in the higher-quality pest control operations could yield between 20% and 40% upside to the current share price over time," it said."Closing SP today = 150.1p (up 1.75p).nk
nk1999
07 May 2015
Telegraph- Questor "The Questor Column:Rat-catcher Rentokil has much to offer: Questor was pretty much reading the company its last rites in 2008, warning that “this could well be the last time we look at Rentokil... Not the company itself, you understand, but the name. After four profits warnings in just eight months, the brand is now so tainted, the new management team led by Andy Brown could be forgiven for ditching it in favour of something new.” What raised eyebrows at the time was the pay deal the three negotiated. Each was awarded 7.5 million shares, with various amounts vesting if the share price hit certain targets and a further 3.75 million shares up for grabs if the share price hit 180p to 280p. When they arrived, the shares were at 85p and the incentive plan had the potential to pay out more than £30 million each. Mr Brown called it a day in October 2013, having six months earlier sold City Link to Jon Moulton’s Better Capital for just £1 and booked a £40 million loss on the deal. Mr Ransom took over and built on the work his predecessor had started. Although pest control makes up 40% of its near-£1.8 billion annual revenues, Renotkil also has two other main business lines. Providing and laundering workwear and protective equipment represents about a quarter of sales, and about the same proportion comes from its hygiene business, which can keep office toilets tidy or even mop up the mess at murder scenes. The shares have enjoyed a good run recently but trading at 16.5 times price-earnings this year, falling to 15.5 next, don’t look overpriced. The yield of around 2% isn’t great but this is more of a growth play. Rentokil at 140p +3.5p. Questor Says “Buy”. "nk
nk1999
02 May 2015
From Mail [link] take on Citylink - saying Rentokil is the main beneficiary of adminstration.nk
LifeInPlastic
06 Mar 2015
Stick or twist? Pondering taking my gain and moving on. The yield is not that attractive. Divi is rising though and the board are understandably cautious on raising it too much given the recent dividend 'holiday'.
