The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Simona Sarli - BofA Securities Inc. - Analyst
: Hi, Andy. Hi, Stuart. Just a quick follow up on what you mentioned this morning, and that is related to your cash conversion guidance that you are
leaving unchanged that 80% to 90% and then just a small increase in leverage compared to last year. Can you please talk about the moving parts
here on why you're retaining the cash conversion guidance?
And also, in light of the fact that you are now looking to reduce the size of your sales force and also all the other initiatives that you mentioned, if
we should expect any incremental one-off costs compared to what you have guided for at the beginning of the year? Thank you.
Question: Simona Sarli - BofA Securities Inc. - Analyst
: Thank you. And as part of the question regarding cash conversion, can you elaborate a little bit more on working capital and the reversal that you're
expecting in the second half of the year? Because if I remember correctly, in H1, you came in with cash conversion a little bit softer than expected,
and there was an element due to debtors and also suppliers. So is there any update on that front? Thank you.
Question: Simona Sarli - BofA Securities Inc. - Analyst
: Thank you.
Question: Nicole Manion - UBS Securities LLC - Analyst
: Hi, everyone. Sorry, I missed the call this morning. So sorry if this has been asked, but just one from me. You were talking, I think, this morning about
the execution on the integration so far. I just wanted to kind of get a sense of how that kind of early branch integration as you sort of shift into that
heavy-lifting phase, what you're seeing that may be different from expectations?
And if there's anything in there that you think you need to sort of rethink around that branch strategy, particularly sort of closing some of those
smaller branches, whether that's all unchanged? Just trying to get the sense of what's really differed from your expectations so far in terms of those
early kind of, yes, full branch integrations. Thanks.
Question: Nicole Manion - UBS Securities LLC - Analyst
: Okay, thank you. So as a summary of that, I guess what you're saying there is that it's been a little bit more disruptive maybe than you expected,
but there's not anything that you can pinpoint that sort of materially kind of underperformed versus the expectations that you have had at the
outset?
Question: Nicole Manion - UBS Securities LLC - Analyst
: Okay, great. Thanks very much.
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SEPTEMBER 11, 2024 / 12:00PM, RTO.L - Q3 2024 Rentokil Initial PLC Trading Statement Call (Afternoon
Session)
Question: Simona Sarli - BofA Securities Inc. - Analyst
: Hi, Andy. Sorry, just one last one from my side. Any update that you can give on where you stand in terms of realigning the compensation package
of the salespeople? If I remember correctly, at H1, you were mentioning that you were going to run some pilot programs towards the end of the
year. Thank you.
Question: Simona Sarli - BofA Securities Inc. - Analyst
: Thank you.
Question: Oli Davies - Redburn Atlantic - Analyst
: Yes. Hi, Andy, just a couple of questions. So in terms of the GBP50 million cost overrun, can you just discuss the reasons why that was so much of
a budget as I assume most of that would occur even if you achieved the 3% organic growth in the second half? And then, I guess, secondly, how
much confidence do you have that can be better budgeted into 2025?
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SEPTEMBER 11, 2024 / 12:00PM, RTO.L - Q3 2024 Rentokil Initial PLC Trading Statement Call (Afternoon
Session)
Question: Oli Davies - Redburn Atlantic - Analyst
: Okay, thanks. And then just one for Andy. On the pay plans, are they consistent across the country? And I guess, when do they get rolled out to
branches that aren't impacted by a consolidation?
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SEPTEMBER 11, 2024 / 12:00PM, RTO.L - Q3 2024 Rentokil Initial PLC Trading Statement Call (Afternoon
Session)
Question: Oli Davies - Redburn Atlantic - Analyst
: Okay, so effectively done regionally, basically?
Question: Oli Davies - Redburn Atlantic - Analyst
: Okay. Thanks very much.
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