Intertek Group Share News (ITRK)

- Revenue up 7.6 per cent- Slowdown in H2 due to industry headwinds- Intertek makes further acquisitionsProducts testing company Intertek Group reported a 7.6 per cent rise in revenue between January 1st to October 31st but has experienced a slowdown in the second half.Growth was driven by acquisitions made in 2012 and 2013 of 1.6% and favourable currency movements of 1.1%.However, the firm noted that industry-wide headwinds experienced in the first half of the year have persisted into the second half. The weakness of the minerals market and challenging conditions in Europe have continued, alongside lower growth in the industrial inspection market following two years of exceptionally high growth. Yet the group achieved strong organic revenue growth from China, one of its largest markets, the Middle East, Latin America and the Indian sub-continent. The Consumer Goods division grew organic revenue strongly at high single digits in the 10-month period while other divisions saw organic revenue increase by low to mid-single digits.Since the half year results, the group has completed two acquisitions including Global X-Ray and Testing for £45m, a US based upstream and offshore energy focused non-destructive testing company. The company separately announced the agreement to buy Architectural Testing Inc, a US based building products testing company for £59m.The group's restructuring programme has continued to progress, with a focus on Europe.While growth has slowed during the second half, tight control of costs means that the decline in margin is expected to be significantly less than in the first half."The headwinds experienced this year in particular in minerals, Europe and some US industrial inspection areas have continued for longer than expected, but will ease next year," said Chief Executive Officer, Wolfhart Hauser. "The core structural growth drivers in many business lines and geographies remain in place and this will help the group to return to high single digit organic growth rates through the economic cycle. We continue to invest in industries and markets that support our strategic goals and as markets recover these investments will support the continued development of our global quality network."Shares dipped 4.72% to 3,031p at 09:48 on Tuesday.RD