Exterminating rats in homes and offices is a business that should be healthy whatever the vicissitudes of the economy.
That is certainly the view of Rentokil Initial, which has in the past few years been restructuring its once sprawling empire to focus on killing off pests, with some other services on the side such as hygiene in the workplace.
It is a strategy that has been well-liked by the market. Its shares have soared since their lows of below 100p in 2011 to 2012. Investors have appreciated the strategic focus of Rentokil’s management and controlled approach to deals, picking up multiple small businesses, often family owned, in various different locations.
That strategy has continued apace, according to Rentokil’s latest annual results. Rentokil spent £281