Intertek grows LFL sales but trading mixed

(Sharecast News) - Testing, inspection and certification firm Intertek delivered a mixed trading update on Thursday, with strong underlying growth in the consumer products and corporate assurance divisions tempered by declines elsewhere in the business. Group like-for-like sales were up 1.1% at £1.09bn over the first four months of 2025, rising 4.5% at constant currencies.

Shore Capital analyst Robin Speakman said LFL growth was "consistent with our model overall which is, we believe, below consensus down to the EPS level".

Intertek's largest division, Consumer Products, delivered 4.2% LFL sales growth to £310m, while Corporate Assurance grew sales 5.3% on a LFL basis to £161.8m.

However, LFL sales were down across the World of Energy (-2.4% at £240.1m), Industry and Infrastructure (-0.3% at £273.5m), and Health and Safety (-1.3% at £106.7m).

Chief executive André Lacroix called it a "good start to the year, with strong LFL revenue growth in our higher margin divisions", as he reiterated the company's target of mid-single digit LFL revenue growth for the year.

"Margin progression was robust, reflecting divisional mix, pricing initiatives, operating leverage and productivity improvements. Free cash flow was strong which, combined with our strong balance sheet, enabled us to invest in growth and commence our £350m share buyback programme in March," Lacroix said.

Intertek shares were down 2.9% at 4,780p by 0844 BST.