Rentokil Shares Plummet 19% After Profit Warning

The pest control giant cites weaker North American sales, over-resourcing, and currency fluctuations as key factors.

Rentokil Initial warned of a significant profit shortfall, expecting adjusted profits to fall to around £700 million, below analysts' expectations.
Shares in the FTSE 100 company dropped by 19% following the announcement, marking a steep decline from their previous high.
Weaker demand for termite extermination services and over-resourcing in North America led to increased business costs and lower-than-expected sales growth.
Currency fluctuations, particularly the rise in the pound against the U.S. dollar, are expected to create an additional £10 million headwind for the company.
Activist investor Nelson Peltz's Trian Partners, which recently built a significant stake in Rentokil, may push for changes to improve shareholder value.