Rentokil(US:RTO) GlobeNewswire News Room·2025-01-23 16:00Core 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].