UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 6-K
__________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For
the month of October 2025
Commission File Number: 001-41524
___________________________________
Rentokil Initial plc
(Registrant’s name)
___________________________________
Compass House
Manor Royal
Crawley
West Sussex RH10 9PY
United Kingdom
(Address of principal executive office)
_____________________________________
Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1): ☐
Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7): ☐
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Q3
Trading Update dated 23 October 2025
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23 October 2025
RENTOKIL INITIAL PLC - THIRD QUARTER TRADING UPDATE
Rentokil Initial plc ("the Group"), today issues a Trading Update
for the three months of the 2025 financial year covering the period
1 July 2025 to 30 September 2025.
Andy Ransom, Chief Executive of Rentokil Initial plc,
said:
"We are encouraged by our performance in the third quarter as the
overall positive trends we described at our interim results have
continued into the second half. Group Revenues grew by 4.6% with
Organic Revenue growth of 3.4%, driven by an acceleration in North
America to 3.4%, including 1.8% for North America Pest Control
Services, and International Organic Revenue growth of
3.3%.
"In North America, it is pleasing to see the actions we have taken
to improve sales execution and to evolve our digital marketing
strategy are driving positive lead flow and overall sales momentum
in the quarter. Our satellite branch openings remain on track to
reach 150 by the end of the year, we have re-commenced the gradual
integration of commercial branches during the quarter and our cost
efficiency programme is on track.
"Current trading is in line with expectations and our outlook for
the remainder of the year remains unchanged, as such, we expect to
deliver FY 2025 financial results in line with market
expectations."
Summary
Group Revenue for
the quarter was $1,810m, representing year on year growth of 4.6%.
Organic Revenue growth for the period was 3.4%.
North America
Revenue growth in North America was 4.6% and Organic Revenue
growth was 3.4%. North America Pest
Control Services Organic Revenue growth was 1.8%
(0.1% in H1 2025). North America Business Services continued to see
positive momentum with Revenue growth of 14.4% (11.9%
Organic).
●
Colleague
Retention reached 81.8% at the end of Q3 (H1 2025: 80.7%) marking
11 consecutive quarters of growth.
●
Customer
Retention of 80.9% (H1 2025: 80.5%) benefiting from the ongoing
'Drive to 85' programme including the investment in the customer
saves team.
●
Positive
lead flow growth in the quarter, supported by an enhanced digital
marketing strategy and improved sales execution. Through the
quarter we continued to adapt our marketing activity to drive the
highest quality leads, improving conversion and cost per
lead.
●
Sustained
strong pricing discipline with price increases slightly above
inflation.
●
139
satellite branches (H1 2025: 100) are now in operation delivering
improved lead generation through a stronger local presence and
enhanced customer reviews, with 150 expected by year
end.
●
Our
door-to-door sales pilot continued through the summer in 25 sales
territories and will be rolled out more widely in
2026.
●
Cost
efficiency initiatives are on track to deliver a $100m cost
reduction and an operating margin in North America above 20% post
2026.
The actions taken to optimise our marketing return on investment
and deliver growth in our contract portfolio have strengthened our
revenue generation through the high season. As we enter the
seasonally quieter fourth quarter it is worth noting that Q4 2024
benefited from c.$6m of emergency Vector Control services revenue
during the hurricane season which, based on the 2025 Atlantic
hurricane season, is not currently expected to repeat.
International (Group excluding North America)
International Revenue grew by 4.6% with Organic Revenue growth of
3.3%, up from 2.7% in H1. The improvement was primarily
driven by the UK with continued strong performance in our core UK
Pest control and Plants businesses and an improved performance from
our Property Services division. Across the rest of our
International businesses, Europe continues to be strong, driven by
the southern Europe markets of Spain, Portugal and Greece.
Growth in the Pacific remains below the average for International
with good growth in core Pest Control and Ambius offset by the
impact of adverse weather on our Rural and Trackspray
businesses.
Category Performance
Pest Control Organic Revenue growth was 3.4% driven by good
momentum in North America which was up by 3.3%. Hygiene &
Wellbeing Organic Revenue grew by 3.0%, an improvement from 0.9% in
H1 2025 as the UK and Sub-Saharan Africa region returned to growth
in the quarter and market conditions improved in the
Pacific.
M&A
The Group's bolt-on M&A programme continued to create value
with three deals, delivering annualised revenue in the year before
acquisition of $4m. This takes the total number of deals to
21 year-to-date with annualised revenue in the year before
acquisition of $39m.
Completion of sale of France Workwear business
The sale of our France Workwear business, which we announced in May
2025, for an enterprise value of €410 million (c.$480
million) including an earn-out of up to €30 million,
completed on 30 September 2025, with net cash proceeds of
€370 million (c.$435 million), subject to the final earn-out
outcome.
Balance Sheet
Following the completion of the sale of the France Workwear
business, net debt at the end of the quarter was
$3,865m.
BBB (stable) rating reaffirmed by Fitch Ratings. The Company
is also BBB (stable) rated by S&P Global.
Outlook
Current trading is in line with expectations and our outlook for
the remainder of the year remains unchanged. We expect to deliver
FY 2025 financial results in line with market
expectations.
Conference call details
Today, 23 October at 9:00am BST, Rentokil Initial Chief Executive,
Andy Ransom and Chief Financial Officer, Paul Edgecliffe-Johnson
will host a conference call for analysts and investors. A replay
will be available on the Company website
(https://www.rentokil-initial.com/investors.aspx) following the
event.
To access the live audio webcast, register via the following
link:
https://www.investis-live.com/rentokil/68ef9d6433e9f50017f9b8c8/nxpwt
Alternatively, to join via teleconference, please register in
advance using the link below:
https://www.netroadshow.com/events/login/LE9zwo494Gg8GZbXj9OiVTz6GbtdSMFn5Oj
Enquiries:
Investors / Analysts: Heather
Wood, Rentokil Initial plc, +44 7808 098793
Media: Malcolm Padley, Rentokil Initial plc, +44 7788
978199
Notes
With effect from 1 January 2025 the Group changed its presentation
currency from sterling to US dollars. All comparatives from 2024
have been represented in USD. In addition and following the
acquisition of the Terminix business whereby the majority of the
Group's revenues are now in North America, the Group's remaining
regions have been combined into an International segment and
reporting is on this basis. In
order to help understand the underlying trading performance, unless
otherwise stated, all commentary and comparable analysis relates to
the continuing operations of the Group on a constant currency
basis. The France Workwear business has been classified as a
discontinued operation following the announcement of the sale of
the business, and all comparatives have been represented
accordingly.
Organic Revenue growth represents the growth in Revenue excluding
the effect of businesses acquired during the year. Acquired
businesses are included in organic measures in the year following
acquisition, and the comparative period is adjusted to include an
estimated full year performance for growth calculations (pro forma
revenue).
North America includes Pest Control (Pest Control Services and
Business Services) and Hygiene & Wellbeing.
North America Pest
Control Services is Pest Control excluding Business
Services.
Summary of Financial Performance
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Revenue
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Q3 2025
$m
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Q3 2024
$m
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Change (reported)
%
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Change(constant currency)
%
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Organic Revenue Growth%
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North America
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Pest
Control
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1,105
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1,058
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4.4%
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4.5%
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3.3%
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-
Pest Control Services
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930
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905
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2.8%
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2.8%
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1.8%
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-
Business Services
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175
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153
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14.3%
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14.4%
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11.9%
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Hygiene
& Wellbeing
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32
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30
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6.8%
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6.9%
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6.7%
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1,137
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1,088
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4.5%
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4.6%
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3.4%
|
|
|
|
|
|
|
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International
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Pest
Control
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403
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376
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6.8%
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5.4%
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3.8%
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Hygiene
& Wellbeing
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270
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257
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5.3%
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3.5%
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2.6%
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|
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673
|
633
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6.2%
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4.6%
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3.3%
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Total
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1,810
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1,721
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5.1%
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4.6%
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3.4%
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Category Performance
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Revenue
|
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|||
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Q3 2025
$m
|
Q3 2024
$m
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Change (reported)
%
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Change(constant currency)
%
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Organic Revenue Growth%
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Pest Control
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1,508
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1,434
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5.1%
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4.7%
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3.4%
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Hygiene & Wellbeing
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302
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287
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5.5%
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3.9%
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3.0%
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Total
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1,810
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1,721
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5.1%
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4.6%
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3.4%
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Cautionary Statement
In order to utilise the 'safe harbour' provisions of the U.S.
Private Securities Litigation Reform Act of 1995 (the "PSLRA") and
the general doctrine of cautionary statements, Rentokil Initial plc
("the Company") is providing the following cautionary statement:
This communication contains forward-looking statements within the
meaning of the PSLRA. Forward-looking statements can sometimes, but
not always, be identified by the use of forward- looking terms such
as "believes," "expects," "may," "will," "shall," "should,"
"would," "could," "potential," "seeks," "aims," "projects,"
"predicts," "is optimistic," "intends," "plans," "estimates,"
"targets," "anticipates," "continues" or other comparable terms or
negatives of these terms and include statements regarding Rentokil
Initial's intentions, beliefs or current expectations concerning,
amongst other things, the results of operations of the Company and
its consolidated entities ("Rentokil Initial" or "the Group"),
financial condition, liquidity, prospects, growth, strategies and
the economic and business circumstances occurring from time to time
in the countries and markets in which Rentokil Initial operates.
Forward- looking statements are based upon current plans, estimates
and expectations that are subject to risks, uncertainties and
assumptions. Should one or more of these risks or uncertainties
materialise, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. The Company can
give no assurance that such plans, estimates or expectations will
be achieved and therefore, actual results may differ materially
from any plans, estimates or expectations in such forward-looking
statements. Important factors that could cause actual results to
differ materially from such plans, estimates or expectations
include: the Group's ability to integrate acquisitions
successfully, or any unexpected costs or liabilities from the
Group's disposals; difficulties in integrating, streamlining and
optimising the Group's IT systems, processes and technologies,
including artificial intelligence technologies; the Group's ability
to attract, retain and develop key personnel to lead the Group's
business; the availability of a suitably skilled and qualified
labour force to maintain the Group's business; cyber security
breaches, attacks and other similar incidents, as well as
disruptions or failures in the Group's IT systems or data security
procedures and those of the Group's third-party service providers;
weakening general economic conditions, including changes in the
global job market or decreased consumer confidence or spending
levels, especially as they may affect demand from the Group's
customers; inflationary pressures, such as increases in wages, fuel
prices and other operating costs; the Group's ability to implement
its business strategies successfully, including achieving its
growth objectives; the Group's ability to retain existing customers
and attract new customers; the highly competitive nature of the
Group's industries; extraordinary events that impact the Group's
ability to service customers without interruption, including a loss
of its third-party distributors; the impact of environmental,
social and governance ("ESG") matters, including those related to
climate change and sustainability, on the Group's business,
reputation, results of operations, financial condition and/or
prospects; supply chain issues, which may result in product
shortages or other disruptions to the Group's business; the Group's
ability to protect its intellectual property and other proprietary
rights that are material to the Group's business; the Group's
reliance on third parties, including third-party vendors for
business process outsourcing initiatives, investment
counterparties, and franchisees, and the risk of any termination or
disruption of such relationships or counterparty default or
litigation; the Group's ability to prevent or detect fraud by
third-party service providers, contractors, employees, franchisees
or any other third parties or counterparties; any future impairment
charges, asset revaluations or downgrades; failure to comply with
the many laws and governmental regulations to which the Group
is subject or the implementation of any new or revised laws
or regulations that alter the environment in which the Group does
business, as well as the costs to the Group of complying with
any such changes and the risk of related litigation; termite damage
claims and lawsuits related thereto and any associated impacts on
the termite provision; the Group's ability to comply with safety,
health and environmental policies, laws and regulations, including
laws pertaining to the use of pesticides; any actual or perceived
failure to comply with stringent, complex and evolving laws, rules,
regulations and standards in many jurisdictions, as well as
contractual obligations, including data privacy and security, and
any litigation (including class action claims and lawsuits) related
to such actual or perceived failures; the identification of
material weaknesses in the Group's internal control over financial
reporting within the meaning of Section 404 of the Sarbanes-Oxley
Act; changes in tax laws and any unanticipated tax liabilities;
adverse credit and financial market events and conditions, which
could, among other things, impede access to or increase the cost of
financing; the restrictions and limitations within the agreements
and instruments governing the Group's indebtedness; a lowering or
withdrawal of the ratings, outlook or watch assigned to the Group's
debt securities by rating agencies; an increase in interest rates
and the resulting increase in the cost of servicing the Group's
debt; and exchange rate fluctuations and the impact on the Group's
results or the foreign currency value of the Company's ADSs and any
dividends. The list of factors presented here is representative and
should not be considered to be a complete statement of all
potential risks and uncertainties. Unlisted factors may present
significant additional obstacles to the realisation of
forward-looking statements. The Company cautions you not to place
undue reliance on any of these forward-looking statements as they
are not guarantees of future performance or outcomes and that
actual performance and outcomes, including, without limitation, the
Group's actual results of operations, financial condition and
liquidity, and the development of new markets or market segments in
which the Group operates, may differ materially from those made in
or suggested by the forward-looking statements contained in this
communication. Except as required by law, Rentokil Initial assumes
no obligation to update or revise the information contained herein,
which speaks only as of the date hereof.
The Company makes no guarantee that trends in the management of
termite damage claims will continue. Additionally, the Company
makes no guarantee that its operational improvement plans will
mitigate against or reduce the number of termite damage claims
(litigated and non-litigated) against the Company nor that these
plans will reduce the ongoing cost to resolve such
claims.
Additional information concerning these and other factors can be
found in Rentokil Initial's filings with the U.S. Securities and
Exchange Commission ("SEC"), which may be obtained free of charge
at the SEC's website, http:// www.sec.gov, and Rentokil Initial's
Annual Reports, which may be obtained free of charge from the
Rentokil Initial website,
https://www.rentokil-initial.com
No statement in this communication is intended to be a profit
forecast and no statement in this communication should be
interpreted to mean that earnings per share of Rentokil Initial for
the current or future financial years would necessarily match or
exceed the historical published earnings per share of Rentokil
Initial.
This communication presents certain non-IFRS measures, which
should not be viewed in isolation as alternatives to the equivalent
IFRS measure, rather they should be viewed as complements to,
and read in conjunction with, the equivalent IFRS measure. These
include revenue and measures presented at actual exchange
rates ("AER" - IFRS) and constant currency ("CER" -
Non-IFRS). Non-IFRS measures presented also include Organic Revenue
Growth. The Group's internal strategic planning process is also
based on these measures, and they are used for incentive
purposes. These measures may not be calculated in the same
way as similarly named measures reported by other
companies.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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Date:
23 October 2025
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RENTOKIL INITIAL PLC
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/s/
Rachel Canham
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Name:
Rachel Canham
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Title:
Group General Counsel and Company Secretary
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