Intertek launches strategic review, shares soar

(Sharecast News) - Shares in Intertek Group jumped on Tuesday, after the testing and inspection specialist revealed it was mulling splitting into two businesses. The blue chip has launched a strategic review to evaluate the creation of two specialist businesses, Intertek Energy & Infrastructure and Intertek Testing & Assurance, either by demerger or a sale.

Chief executive Andre Lacroix said the move could "unleash their full potential and create more value for all".

He continued: "Giving the leading scale positions we have built in our end markets over the years, and the depth and breadth of our industry-leading ATIC [assurance, testing, inspection and certification] offering, we believe that two specialist scale global AITC businesses could be best positioned to accelerate growth and deliver greater value for shareholders.

"This would be supported by a focused specialist portfolio strategy, sharper capital allocation and faster in-market execution."

Intertek Energy & Infrastructure and Intertek Testing & Assurance have respective annual revenues of around £1.6bn and £1.9bn.

The update came as Intertek posted like-for-like revenue growth of 5.4% in the first quarter on a constant currency basis, driven by a strong performance in consumer products and double-digit growth for risk-based assurance solutions in its corporate assurance unit.

Intertek called it a "strong" start to the year, and reiterated full-year guidance for mid-single digit like-for-like revenue growth, "continuous" margin progression and "strong" earnings growth.

As at 0900 BST, shares in Intertek were up 11% at 4,238p.

The strategic review is due to be concluded and implemented by the middle of 2027.

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