Rentokil's earnings face quality barrier
Article Abstract:
Rentokil acquired BET, also a business services group, in April 1996. The company's earnings quality has been diluted by this acquisition. BET includes a number of businesses where operating margins are lower than in Rentokil's pest control and tropical plants operations. Some of BET's activities are cyclical and in areas where Rentokil has little expertise. Rentokil has been concerned with earnings growth and investors may find it difficult to assess whether long-term goals could be hit be a desire to reach an annual target.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Rentokil Initial
Article Abstract:
Rentokil Initial has seen a further drop in its stock price after results were announced that were at the lower end of forecasts. Investec Henderson Croswaithe rates the company's stocks 'underperform' and is concerned about the performance of BET, while BNP Paribas rates the stocks a buy and sees the company as undervalued. Commerzbank rates the stocks a sell and is concerned about margin upside and organic sales growth. Returns on capital employed have also been unexceptional.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2000
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