IN FOCUS: RENTOKIL ‘ PEST CONTROL FIRM AT THE FOREFRONT OF INNOVATION’

Rentokil is known to be a pest control business in the UK, but it has a big business in America and the emerging markets, where the rise of the middle class has increased demand for pest-free housing and offices.

But it is the US business that is most interesting. The market is still growing and legislative hurdles are on the rise in areas such as food hygiene, which is in the company’s interests.

But there is also a consolidation story. If a Rentokil van has five customers on a road and it buys a rival with another five customers on that road, you can use one van to do the 10 visits.

If you can increase your route density you can improve your profits and that gives you more money to invest in systems and technology. It is already the market leader in innovation.

Rentokil now has mousetraps that are remotely monitored so employees know if they have been triggered, for example. Previously, they would have had to check every single one, whereas now they can just go to the traps that have been triggered.

Technology improves the firm’s efficiency, which will lead to higher profits in the long term. got wrong was not to do with the business itself but when I bought it I was uncomfortable with its management culture at the time, which I felt was then more prone to use the stick than the carrot.

But the investment case was compelling. My head led me one way and my heart the other. My head won.

Do you invest in the fund?

Yes, I do in all my funds.

How are you paid?

I have my salary and there is a mostly deferred bonus, which is a percentage of the company’s profits based on the fund’s performance.

What would you have been if not a fund manager?

A teacher. My mother was a primary school teacher and spent the last third of her career as a headmistress turning around failing schools.

I taught English and sport in Australia at Sydney Grammar School in my year off before gap years were commonly taken and thoroughly enjoyed that experience.