Intertek Group Share News (ITRK)

- Revenue rises 0.3 per cent- Operating margins improve- No material change in financial positionIntertek reported a 0.3 per cent rise in quarterly organic revenue as operating margins improved on ongoing restructuring activities.The inspection, product testing and certification company said it experienced strong performance of its key product-related business but weaker-than-expected activity in the energy market in the three months to the end of April 2014.Sterling appreciated against many of the group's currencies and at actual exchange rates total revenue declined by 4.9%. Excluding the effect of the firm's decision to exit certain low-value Industry contracts, organic revenue growth was 1.5%. The company exited low-value contracts in the Industry & Assurance division, which reduced group revenue by 1.2% in the period. The deferral of some energy industry capital projects reduced technical inspection activity during the period. In the Commodities division the minerals business faced new export restrictions in Indonesia, while the cargo business in the US was hurt by severe weather conditions at the start of the year.The Consumer Goods and Commercial & Electrical divisions, on the other hand, achieved positive trading in key industries such as toys, textiles and transportation technologies. The Chemicals & Pharma division also reported solid growth.During the period, new testing laboratories were opened for high-tech lighting (Asia), Food (UK, the Philippines and Germany), consumer and commercial electrical products (Brazil), shale commodities (USA) and textiles (Sri Lanka). The group also completed the acquisition of Inspec a testing company supporting the oil and gas sector, for £40m.Intertek said its financial position remains strong, with no material change in the financial position since that reported in March.Wolfhart Hauser, Chief Executive Officer of Intertek, said: "Market conditions remain variable with good growth in our key product-related business lines but weak demand in certain other markets. We continue to anticipate improvement in growth and profitability in the second half of 2014 as market conditions are expected to improve and comparatives become easier."RD