We have a regional structure based upon five strong regions.

Regional performance

North America

In North America Ongoing Revenue grew 38.5% in 2016, of which 34.1% was growth through acquisition and 4.4% was Organic Revenue. Pest Control grew by 45.3%, of which 5.1% was organic. Strong Ongoing Operating Profit growth of 44.5% reflects the leverage impact from higher revenues and acquisitions, including synergy delivery in Steritech. This has improved net Operating Margins by 60 basis points to 13.5%. The integration of the Steritech business continues to proceed successfully and the business generated profits of c. $30m in 2016, at the top end of expectations. 17 businesses were acquired in the region in 2016 with combined annualised revenues of £101m in the year prior to purchase. Ongoing Revenue and Ongoing Operating Profit at actual exchange rates were up 55.9% and 62.8% respectively aided by the weakness of Sterling against the US Dollar in 2016.

Europe

Total Ongoing Revenue for Europe rose by 1.4% (of which 0.9% was organic), with good growth in Germany (+4.1%) and Southern Europe (+2.4%) partially offset by a decline in France (-0.9%). Latin America, which is run out of the Europe region, performed particularly well, rising by 26.1%. Our European Hygiene operations grew by 1.8%, driven by growth in France in particular, while Ongoing Revenues from our Pest Control businesses grew by 7.0%. Ongoing Revenue and Ongoing Operating Profit at actual exchange rates declined by 13.3% and 9.1% respectively.

UK & Rest of World

Our UK & Rest of World region performed strongly in 2016, delivering an overall increase in Ongoing Revenue of 4.5%, comprising Organic Revenue growth of 4.1% and growth through acquisition of 0.4%. In the UK both our Pest Control and Hygiene operations grew well, aided by further growth in jobbing work in both Pest Control and property services, along with portfolio growth in Hygiene. The Rest of World operations delivered good Ongoing Revenue growth of 4.4% across all of its regional clusters in the Nordics, Caribbean, Africa and MENAT. Overall Ongoing Operating Profit for the region grew by 4.6%, reflecting higher Ongoing Revenue growth and cost control. Net margins were maintained at 20.4% with growth in Pest Control margins offset by some contraction in Hygiene margins associated with costs incurred through new product roll-outs across the business. Ongoing Revenue and Ongoing Operating Profit at actual exchange rates increased by 7.6% and 8.8% respectively.

Asia

The Asia region has had another excellent performance with Ongoing Revenue increasing by 12.0% (+8.1% Organic Revenue growth) with both the Pest Control and Hygiene businesses performing well. Our operations in the less established markets of India, China and Vietnam continue to deliver strong growth (+23.0%). Double-digit Ongoing Revenue increases were also delivered in the more developed markets of Indonesia (+13.0%) and Malaysia (+15.2%). Ongoing Operating Profit in the region grew by 31.1% in 2016, reflecting the leverage from higher revenues, density and service productivity, contributing to an increase in net Operating Margins of 1.5% points. We acquired two new Pest Control businesses in Hong Kong and China during the year and a Hygiene operation in Malaysia with combined annualised revenues of £5m. Ongoing Revenue and Ongoing Operating Profit at actual exchange rates rose by 22.8% and 42.5% respectively.

Pacific

In the Pacific region Ongoing Revenue grew strongly by 10.7% in 2016 (+4.0% Organic Revenue growth), driven by additional contract revenue from acquisitions, higher levels of jobbing work in Pest Control and improved retention in Hygiene. Ongoing Operating Profit in the region grew 11.9% with productivity gains supplementing the strong revenue growth. Operating Margins increased slightly by 0.2% points as a reflection of higher revenues and productivity gains. Eight new companies were acquired during the year, six in Pest Control and two in Hygiene, with combined annualised revenues of £10m. Ongoing Revenue and Ongoing Operating Profit at actual exchange rates were up 23.5% and 24.8% respectively.