Group 1 - The pest control industry is characterized by capital light and non-cyclical traits, making it an attractive sector for investment [1] - There is an increasing trend in client retention ratios within the industry, indicating a growing customer base [1]

Financial Performance - Group revenue reached £5.587 billion, a 3.9% increase at constant exchange rates (CER), with organic revenue growth of 2.8%[11] - Adjusted profit before tax (PBT) was £703 million at actual exchange rates (AER)[11] - Free cash flow was £410 million, representing an 80% adjusted free cash flow conversion rate[11, 23] - The company is targeting a post-integration North American margin of over 20%[29] Regional Performance - North America revenue was £3.347 billion, up 1.3%, with organic revenue growth of 1.5%[10, 24] - International revenue (excluding North America and France Workwear) was £2.0 billion, up 8.3%[10, 11] - Pest Control organic growth was 5.3%[11] North America Integration and Strategy - The company is working to complete the Terminix integration by the end of 2026[17, 65, 85] - Full branch integration is scheduled to restart in early H2, with a target completion by the end of 2026[17] - The company plans to exceed 500 branches, including new satellite branches, in North America[17, 82, 88] - The company is retaining 9 regional brands as part of a multi-brand strategy[17] Customer and Colleague Retention - Group colleague retention was 86.6%, a 2.4% increase compared to 2023[11, 98] - Group customer retention was 82.8%, a 0.5% increase compared to 2023[11, 98] - North America customer retention improved to 80.1% in 2024, with over 81% in Q4[11, 27, 71] Pest Control Business - Pest Control revenue grew by 2.9% to £4.4 billion, with 2.5% organic growth[35] - The company has installed 500,000 PestConnect units[11, 35, 103]

Financial Data and Key Metrics Changes - The company reported a revenue of GBP 5.6 billion for 2024, reflecting a 3.9% increase, with organic growth at 2.8% [2][21] - Adjusted operating profit decreased by 7.1% to GBP 860 million, with a corresponding margin reduction of 130 basis points [22] - Free cash flow was GBP 410 million, with a cash conversion rate of 80% [22] - The net debt-to-EBITDA ratio at year-end was 2.9x, with expectations to reduce this towards a targeted range of 2 to 2.5x in 2025 [49] Business Line Data and Key Metrics Changes - North American business grew by 1.3%, with organic growth at 1.5%, while the International business saw revenue growth of 8.2% [21][35] - Pest Control revenue was GBP 4.4 billion, with total revenue growth of 2.9% and organic growth of 2.5% [39] - The Hygiene & Wellbeing category delivered revenue growth of 8.4%, with 3.1% organic growth [39] Market Data and Key Metrics Changes - The International business, which includes all regions outside North America, achieved revenue of GBP 2.2 billion, with organic growth of 4.7% [35] - Customer retention rates in the International business remained strong, with all regions delivering rates over 80% [38] Company Strategy and Development Direction - The company is focused on the integration of Terminix, aiming to create a highly efficient operating model with a competitive cost structure [17][18] - A multi-brand strategy will be implemented, retaining nine regional brands to enhance local presence and reduce the need for branch mergers [11][77] - The company plans to open more satellite branches, increasing the total expected locations to over 500 [11][76] Management's Comments on Operating Environment and Future Outlook - Management anticipates that growth will experience periods of disruption during the integration process, particularly in Q1 due to weak lead flow and adverse weather [19] - The company expects to achieve full-year financial performance in line with market expectations, focusing on organic expansion and strategic acquisitions [20] - There is confidence in the long-term growth potential, driven by favorable market dynamics such as population growth and urbanization [16] Other Important Information - The company plans to accelerate marketing efforts to improve brand awareness and lead generation [11][68] - Significant investments were made in customer sales teams, resulting in improved customer satisfaction and retention [62] - The company recorded a working capital outflow of GBP 105 million for the full year, with expectations for improvement in 2025 [42] Q&A Session Summary Question: Digital leads and IT systems rollout - Inquiry about the differentiation of digital leads performance between branches with new systems and legacy ones, and challenges faced in the rollout [84][85] Question: Sales force incentive scheme - Questions regarding feedback from salespeople on the new commission structure differentiating contracts from one-off jobs [86] Question: Cost synergies and inflation impact - Inquiry about changes in cost synergies expectations and the impact of inflation on previous targets [89] Response: Digital leads and IT systems - Management acknowledged that integrating branches can negatively impact organic growth but noted strong colleague retention and customer satisfaction during the process [102] Response: Sales force incentive scheme - Management indicated that changes to sales incentives are complex but necessary to improve contract sales performance [96][100] Response: Cost synergies and inflation impact - Management expressed confidence in achieving cost synergies but noted challenges due to inflation and integration investments [94][95]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Rentokil Initial plc regarding a class action lawsuit due to alleged misleading statements and execution challenges related to the integration of Terminix [1][2]. Group 1: Allegations - The complaint alleges that Rentokil faced significant disruption during the early integration of Terminix, which was not disclosed to shareholders [1]. - It is claimed that Rentokil encountered ongoing self-inflicted execution challenges that jeopardized the integration plan for Terminix [1]. - The separation of Rentokil and Terminix as two distinct businesses negatively impacted Rentokil's operations, particularly organic revenue growth in North America [1]. Group 2: Class Action Details - The class period for the lawsuit is defined as December 1, 2023, to September 10, 2024 [1]. - Shareholders are encouraged to register for the class action by the deadline of January 27, 2025, to potentially be appointed as lead plaintiffs [2]. - Participants will be enrolled in a portfolio monitoring software to receive updates on the case's progress [2]. Group 3: Firm Background - The Gross Law Firm is recognized nationally for its commitment to protecting investors' rights against deceit and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [3].

Core Viewpoint - Rosen Law Firm is reminding purchasers of American Depositary Shares (ADS) of Rentokil Initial plc about the lead plaintiff deadline for a class action lawsuit related to alleged misleading statements and execution challenges during the integration of Terminix [1][5]. Group 1: Class Action Details - Investors who purchased Rentokil ADSs between December 1, 2023, and September 10, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by January 27, 2025 [3]. - Investors can join the class action by visiting the provided link or contacting the law firm directly for more information [6]. Group 2: Allegations Against Rentokil - The lawsuit claims that Rentokil made false and misleading statements regarding the integration of Terminix, including disruptions and execution challenges that negatively impacted business operations and organic revenue growth in North America [5]. - Specific allegations include that Rentokil and Terminix remained separate businesses and that the integration plan was imperiled due to these challenges [5].

Core Viewpoint - Rentokil Initial plc is facing a class action lawsuit due to alleged misleading statements and failures to disclose critical information regarding its integration of Terminix Global Holdings, which negatively impacted its business performance and stock price [3][4][5][6]. Group 1: Class Action Details - The class action represents investors who purchased Rentokil securities between December 1, 2023, and September 10, 2024, with a deadline for filing a lead plaintiff motion set for January 27, 2025 [1]. - The lawsuit claims that Rentokil made false statements and failed to disclose significant integration challenges with Terminix, jeopardizing its business operations [4]. Group 2: Financial Impact - Rentokil's organic revenue growth in North America was reported at only 1.5% year-over-year on April 18, 2024, significantly below the company's earlier guidance of 2% for Q1 and 2% to 4% for the full year [5]. - Following the disappointing revenue growth announcement, Rentokil's American Depositary Shares (ADS) price dropped by more than 9% [5]. - An unscheduled trading update on September 11, 2024, forecasted just 1% organic revenue growth for the second half of 2024, leading to a further decline of over 21% in the ADS price [6].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Rentokil Initial plc due to alleged violations of federal securities laws, particularly concerning misleading statements about the integration of Terminix and its impact on the company's performance [2][4]. Group 1: Allegations Against Rentokil - The complaint alleges that Rentokil and its executives made false or misleading statements regarding the integration of Terminix, which faced significant execution challenges [4]. - Specific issues cited include disruption during the early integration pilots, ongoing execution challenges, and the failure to integrate Terminix, which negatively impacted organic revenue growth in North America [4]. - The allegations suggest that Rentokil's positive statements about its business and prospects lacked a reasonable basis and were materially false [4]. Group 2: Financial Performance and Market Reaction - On April 18, 2024, Rentokil reported only 1.5% organic revenue growth in North America for Q1 2024, below the guidance of 2%, leading to a 9% drop in the stock price [5]. - A subsequent trading update on September 11, 2024, revealed an expected 1% organic revenue growth for the second half of 2024, significantly lower than prior guidance, resulting in a 21% decline in stock price [6]. - The CEO and CFO acknowledged execution challenges during a conference call, indicating that the integration efforts had not been successful and that the businesses remained largely separate [6].

Core Viewpoint - Rentokil Initial plc is facing legal action due to alleged misleading statements regarding its financial performance and integration challenges with Terminix, leading to significant stock price declines during the class period [1][5]. Financial Performance - In Q1 2024, Rentokil reported organic revenue growth in North America of only 1.5% year-over-year, which was below the company's guidance of 2% for the quarter and 2% to 4% for the full year [3]. - Following the Q1 results announcement, Rentokil's ADS price dropped 9%, from $28.25 on April 17, 2024, to $25.61 on April 18, 2024 [3]. - On September 11, 2024, Rentokil revised its North American organic revenue growth forecast for the second half of the year down to 1%, significantly below previous guidance [4]. - The share price fell by approximately 21% on the news of the revised forecast, from $31.60 on September 10, 2024, to $24.95 on September 11, 2024 [4]. Integration Challenges - The lawsuit claims that Rentokil faced significant disruptions and execution challenges during the integration of Terminix, which negatively impacted its business operations and revenue growth [5]. - CEO Andy Ransom acknowledged that the integration process was complex and far from complete, attributing issues to internal execution failures rather than market conditions [4]. - Analysts from UBS and Deutsche Bank expressed concerns over Rentokil's credibility and lowered profit forecasts, predicting prolonged integration challenges and slowed growth through 2026 [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Rentokil Initial plc regarding a class action lawsuit due to alleged misleading statements and execution challenges related to the integration of Terminix [1][3]. Group 1: Allegations - The complaint alleges that during the class period from December 1, 2023, to September 10, 2024, Rentokil made materially false and misleading statements [3]. - Specific allegations include disruption in early pilots of the Terminix integration, significant self-inflicted execution challenges, and the failure to integrate Terminix, which negatively impacted organic revenue growth in North America [3]. - The lawsuit claims that Rentokil and Terminix remained separate businesses and that the positive statements made by the defendants lacked a reasonable basis [3]. Group 2: Class Action Details - Shareholders who purchased shares of Rentokil during the specified class period are encouraged to register for the class action, with a deadline of January 27, 2025, to seek lead plaintiff status [4]. - Participants will be enrolled in a portfolio monitoring software to receive updates throughout the case lifecycle [4]. - There is no cost or obligation for shareholders to participate in the case [4]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit and illegal business practices [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements [5].

Core Viewpoint - Shareholders of Rentokil Initial plc (RTO) who have incurred financial losses are encouraged to reach out to Levi & Korsinsky regarding a pending class action lawsuit [1] Group 1 - The class action is aimed at addressing the grievances of shareholders who lost money on their investments in Rentokil Initial plc [1] - Levi & Korsinsky is the law firm representing the interests of the affected shareholders [1]