Rentokil Initial has posted a 3.6% jump in Q3 revenue to £1.44bn as the group reported strength in its UK, European and Asian operations.

The pest control firm, which is listed on the FTSE 100, said it also had made progress on plans to rebalance its cost base in North America, where revenue growth had been slightly more subdued at 1.4%.

Rentokil’s latest trading update covered the three-month period to 30 September and the company confirmed that its revenue and margin guidance for FY24 was remaining unchanged.

However, chief executive of Rentokil, Andy Ransom, said the firm recognised that it had “underperformed” in the North American market.

“We are focused on delivering the operational improvements required,” he added. “We are expanding our initiatives to increase organic growth, and we are taking action to mitigate cost overruns.”

The Financial Times reported that shares in the pest control company had jumped 9% following the trading statement.

Investment director at AJ Bell, Russ Mould, commented that while this material bounce would be “sweet relief” for shareholders who have endured a tough period, the move was still “worth putting in context”.

“The shares had been weak heading into the Q3 update so they are now only modestly higher over the course of the last week and are still down more than 20% since September’s profit warning,” Mould said.

“Investors will have been reassured by the fact full-year targets remain unchanged and by the action taken to boost organic growth in North America and bring costs back under control. The company has also revamped its senior leadership team across the Atlantic.”

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