Rentokil Initial drops as it withdraws dividend

FTSE 100 pest control specialist Rentokil Initial (LON:RTO) watched its share price sink by 17.30% to 306.31p (as of 11:45 GMT) after it withdrew its previous guidance for the second quarter as the impact of COVID-19 worsened. Management said that cost cutting measures had been implemented and the final dividend outlined in the company’s results last month has been withdrawn.

Chief executive Andy Ransom commented: “Rentokil Initial is a strong and resilient company offering critical and essential Pest Control and Hygiene services to customers. While we had made a good start to the year, the ongoing uncertainty and turmoil presented by the COVID-19 outbreak will mean we will have a difficult second quarter and potentially beyond. However, we are taking appropriate cost and cash action to protect the business and our liquidity, and to put us in the best position to support the recovery phase.

“I would like to thank my colleagues for the bravery and commitment they have shown as this crisis has unfolded and we will do everything we can to continue to protect our colleagues, customers and shareholders in these unprecedented times“.