Intertek Group Share News (ITRK)

- Profit and revenue rise on emerging market growth- Cost cutting programme continues- Earnings per share up 5.6 per cent- Dividend raised 12 per centProduct testing company Intertek Group reported a 6.3 per cent increase in annual revenue to 2.18bn pounds, driven by growth in divisions within emerging markets.Adjusted operating profit gained 2.2% to £343m in the year through December 2013 despite a drop in operating margin to 15.7% from 16.3% in the prior year.The company said the margin was hurt by the 2013 downturn in the minerals sector, against high volumes in 2011 and 2012, and weakness in businesses in Europe. Continued investment in new facilities and services also weighed on operating margin as new laboratories came on line. It was offset by strong performance across major developing economies, in particular China and India.Adjusted diluted earnings per share for the year increased by 5.6% to 138.6p.The company recommended a full-year dividend of 46p per share, up 12% on the previous year. The Consumer Goods unit reported high single digit organic revenue growth while the Commercial and Electrical and Industry and Assurance divisions posted mid-single digit organic revenue growth for the full year. Following a strong start to the year, the performance of the Industry and Assurance division moderated during the second half reflecting the weakness of discretionary spending in the US and from exiting certain lower value contracts.The Commodities and Chemicals and Pharmaceuticals divisions were hit in the second half by continuing challenges of the minerals exploration market and persistent weak conditions in Europe.The company continued to implement cost-cutting activities in 2013. The cost restructuring activities in 2012 and 2013 came to £23m, of which £9m has been recorded in 2013. Three businesses have been sold and 11 locations have been closed, with particular focus on Europe. Intertek also made seven acquisitions for £122m and made £145m of organic capital investment."As markets stabilise and the benefit of the group's restructuring and cost reductions come through, we expect 2014 to be a year of progressively improving growth and profitability," said Chief Executive Wolfhart Hauser.RD