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Interim Results

Intertek revenues rise

01 August 2017 07:49

Intertek saw strong earnings growth and cash generation in the first half with group revenue of £1.372bn - up 2.7% at constant rates and up 13.9% at actual rates.

Operating profits rose to £223.9m - up 20.4% at actual rates and up 10.1% at constant rates.

Operating margins increased to 16.3% from 15.4%.

The group declared an interim dividend of 23.5p per shares - up 21.1%.

Chief executive Andre Lacroix said: "The Group has delivered a strong earnings and cash performance in the first half, reflecting the Group's performance management discipline focussed on margin accretive revenue growth with strong cash conversion and accretive disciplined capital allocation. "In line with our progressive dividend policy and underpinned by our excellent cash generation, we have announced a half year dividend of 23.5p, an increase of 21.1%. "The Products and Trade related divisions, which represent 94% of the Group's earnings, delivered an excellent performance with organic growth of 5.5% at constant rates while, as expected, trading conditions remained challenging in the Resources related division.

"The recent acquisitions in high margin and high growth areas performed well.

"We are well positioned to deliver solid organic revenue growth with robust margin progression at constant currency in 2017. "The $250 billion global quality assurance industry has attractive structural growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products. "We are uniquely positioned to seize these exciting growth opportunities with our Total Quality Assurance value proposition that provides a superior service, offering global Assurance, Testing, Inspection and Certification solutions to our customers across multiple industries through our global network of over 1,000 state of the art facilities in over 100 countries. "We operate a high quality and highly cash generative earnings model.

"Our differentiated growth strategy will continue to move the centre of gravity of our portfolio towards the attractive growth and margin opportunities in the industry based on a disciplined approach to revenue, margin, portfolio and cash performance management, and an accretive disciplined capital allocation to deliver sustainable returns for our shareholders. "We are on track on our 'good to great' journey, making progress on both performance and strategy."

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Related Company: ITRK

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