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 April 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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Q1
Trading Update dated 17 April 2025
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|
17 April 2025
RENTOKIL INITIAL PLC
FIRST QUARTER TRADING UPDATE
Rentokil Initial plc (the "Company") today issues a Trading Update
for the first three months of the 2025 financial year covering the
period from 1 January to 31 March 2025. As previously announced,
Rentokil Initial now reports in US dollars to better reflect the
geographic mix of its revenue and earnings.
Andy Ransom, Chief Executive of Rentokil Initial plc,
said:
"Our International Pest Control business performed well. As already
stated, North America had a slow first quarter with continued
subdued lead flow. Our focus remains on building growth momentum
and positioning the business to deliver on our strategic ambitions.
Despite increased macro-economic uncertainties, we remain confident
about the longer-term based on the resilience of our markets, our
global reach, our diverse customer base and our recurring
revenues."
Q1 2025
The Group reported total Revenue of $1,635m in Q1 2025 (AER),
representing year-on-year growth of 1.5% and Organic Revenue growth
of 1.8%¹, held back by c.30bps due to one fewer trading day
year-on-year.
North America
● Revenue growth in North America was 0.5% and
Organic Revenue growth was 0.7%, with a c.50bps headwind from one
fewer trading day.
● Pest Control Organic Revenue was up 0.5% and Pest
Control services for residential, commercial and termite customers
was down by 0.2% as it continued to be impacted by low inbound lead
flow and contract sales.
● North America colleague retention increased to
79.8% (FY 24: 79.4%) and customer retention increased to
80.4% (FY 24: 80.1%), supported by our enhanced retention
strategies. These favourable trends are positive for future organic
growth prospects.
Growth Initiatives
● Digital inbound lead flow from our paid search
activities returned to positive growth in March, following a
decline in February as we transitioned to a new agency partner.
While lead generation from our organic search initiatives remained
subdued, we expect a positive shift supported by the rollout and
full activation of the new satellite branches and brand strategy.
36 satellite branches across the region are now
operational.
● Sales lead participation rates among technicians
(The Trusted Advisor plan) improved by 9ppts in the quarter to
60%.
● Five-star reviews for Terminix, which serve as a
critical component of Internet search visibility, increased by 71%
in the quarter.
● The door-to-door sales pilot programme is
set to launch in early Q2 with the participation of c.30
branches.
International (Group excluding North America)
Organic Revenue grew 3.3%, with good performances in Europe (incl.
LATAM), Asia & MENAT and Pacific, offset by the UK, which
lapped strong prior year comparatives in its specialist hygiene
asbestos remediation business.
Category Performance
Pest Control Organic Revenue growth was 1.7% led by international,
up by 4.7%. Hygiene & Wellbeing grew by 1.6%, with a drag from
the UK. France Workwear was up 4.4%.
M&A
The Group's bolt-on M&A programme continued to create value
with 6 deals, delivering annualised revenue in the year before
acquisition of $13m.
Rentokil Initial intends to publish its 2025 Interim Results on 31
July 2025.
Notes
¹ Organic Revenue growth is at CER. The revenue base used for
North America Organic Revenue growth percentage also deducts
revenue from 1 January 2024 to 31 March 2024 for the Paragon
distribution business, closed with effect from 1 April
2024.
Summary of Financial Performance
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AER
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CER
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||
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Q1
2025
$m
|
Q1
2024
$m
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Change
%
|
Organic
Revenue
Growth
%
|
|
North America
|
|
|
|
|
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Pest
Control
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921
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918
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0.2%
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0.5%
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Hygiene
& Wellbeing
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30
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28
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9.3%
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5.9%
|
|
|
951
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946
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0.5%
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0.7%
|
|
|
|
|
|
|
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International
|
|
|
|
|
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Pest
Control
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358
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345
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3.5%
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4.7%
|
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Hygiene
& Wellbeing
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251
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245
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2.7%
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1.1%
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France
Workwear
|
71
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71
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0.6%
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4.4%
|
|
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680
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661
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2.9%
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3.3%
|
|
|
|
|
|
|
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Europe (incl. LATAM)
|
|
|
|
|
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Pest
Control
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164
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163
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0.4%
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3.8%
|
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Hygiene
& Wellbeing
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111
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109
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2.3%
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2.3%
|
|
France
Workwear
|
71
|
71
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0.6%
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4.4%
|
|
|
346
|
343
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1.0%
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3.5%
|
|
|
|
|
|
|
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UK & Sub Saharan Africa
|
|
|
|
|
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Pest
Control
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65
|
62
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4.1%
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4.7%
|
|
Hygiene
& Wellbeing
|
73
|
67
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8.5%
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(1.2%)
|
|
|
138
|
129
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6.4%
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1.6%
|
|
|
|
|
|
|
|
Asia & MENAT
|
|
|
|
|
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Pest
Control
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85
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78
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8.5%
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5.7%
|
|
Hygiene
& Wellbeing
|
29
|
28
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3.4%
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3.3%
|
|
|
114
|
106
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7.2%
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5.1%
|
|
|
|
|
|
|
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Pacific
|
|
|
|
|
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Pest
Control
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44
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42
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4.9%
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6.1%
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|
Hygiene
& Wellbeing
|
38
|
41
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(6.2%)
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0.3%
|
|
|
82
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83
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(0.6%)
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3.3%
|
|
|
|
|
|
|
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Central
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4
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4
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-
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0.6%
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Total
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1,635
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1,611
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1.5%
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1.8%
|
Category Performance
|
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AER
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CER
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||
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Q1
2025
$m
|
Q1
2024
$m
|
Change
%
|
Organic
Revenue
Growth
%
|
|
Pest
Control
|
1,279
|
1,263
|
1.1%
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1.7%
|
|
Hygiene
& Wellbeing
|
281
|
273
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3.4%
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1.6%
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|
France
Workwear
|
71
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71
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0.6%
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4.4%
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|
Central
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4
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4
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-
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0.6%
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Total
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1,635
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1,611
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1.5%
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1.8%
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Today, 17 April 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 following the
event.
To join via teleconference, please register in advance using the
link below:
https://registrations.events/direct/Q4I3868179
Alternatively, the live audio webcast can be accessed
at:
https://events.q4inc.com/attendee/543985772
Enquiries:
Investors / Analysts: Peter Russell, Rentokil Initial plc, + 44
7795 166506
Media: Malcolm Padley, Rentokil Initial plc, +44 7788
978199
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 our IT systems, processes and technologies, including
artificial intelligence technologies; the Group's ability to
attract, retain and develop key personnel to lead the 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 our
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; any future
impairment charges, asset revaluations or downgrades; failure to
comply with the many laws and governmental regulations to which we
are subject or the implementation of any new or revised laws or
regulations that alter the environment in which we do business, as
well as the costs to us 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 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 our
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.
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 announcement is intended to be a profit
forecast and no statement in this announcement 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). 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:
17 April 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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