Rentokil Shares (RTO) Add 11%, Push Through 380p Resistance on Solid H1 Growth

Rentokil shares (LON:RTO) are rallying today, breaking above the 380p resistance level on strong H1 financials, with solid growth and a reaffirmed FY outlook.

The positive reaction to the H1 results suggests a potential shift in market sentiment after what has been a challenging year for holders, with shares down 19.5% in the past 12 months.

In today's report, Rentokil delivered a 3.1% increase in Group Revenue for H1 2025, with a 5.1% growth in its International business.

Organic growth reached 1.6%, with North America contributing 1.1% and International markets 2.7%.

Rentokil also demonstrated strong cash flow performance, achieving a free cash flow conversion rate of 93%, significantly exceeding its guidance of 80%. The interim dividend was maintained at 4.15 cents per share.

Andy Ransom, Chief Executive of Rentokil Initial plc, commented, “We delivered a solid first half performance, in line with expectations, with Revenue growth of 3.1% and Adjusted Group Profit before tax (including discontinued operations) of $444m.”

The company's outlook for the remainder of 2025 remains positive, with management expecting to deliver full-year financial results in line with market expectations. Current trading in H2 is reportedly solid, reinforcing the company's confidence in achieving its targets.

Rentokil's commitment to innovation and technology is evident through its continued investments in solutions like PestConnect. The company rolled out an additional 75,000 units of PestConnect in H1 2024, bringing the total to 440,000 units in operation.

The launch of Radar X and AI smart camera technology for rodent identification further demonstrates Rentokil's focus on sustainable and technologically advanced pest control solutions

The bears will point to a relatively modest organic growth, despite the improvement, and the adverse foreign exchange impact on net debt.

Today is a good day for holders of the RTO, yet there remains plenty of work to be done in order to return the shares to previous heights.