Intertek forecasts high single-digit growth

Testing and inspections firm Intertek was not quite firing on all cylinders in the first half of 2011, but still delivered solid revenue and profit growth."Our businesses continue to perform well overall, with strength in some areas offsetting slower growth in others," said Wolfhart Hauser, chief executive of Intertek. Revenue rose 17%, or 18% using constant exchange rates to £763.1m from £652.6m in the first half of last year. Adjusted profit before tax climbed 14% to £110.6m from £97.3m the year before, but was up just 1% on a reported basis to £85.3m from £84.5m last year. The adjusted figures exclude items such as amortisation, integration and restructuring costs and other one-off items.Adjusted diluted earnings per share jumped 12% to 45.4p from 40.6p. Statutory basic earnings per share fell 6% to 33.2p from 35.2p."Commodities, Commercial & Electrical and the recently acquired Moody business are expected to continue to grow very well in the second half of the year. Consumer Goods is expected to make progress from the slower growth in the first half with its long term growth drivers remaining in place," Hauser said."Whilst we are mindful of the uncertain economic conditions, we expect to grow revenue at high single digits on an organic constant currency basis for the full year with a margin close to that of the prior year," Hauser added.The interim dividend has been hiked 15% to 10.7p from 9.3p. The company also announced three bolt-on acquisitions: Food Analytical Laboratory Limited (FAL); Recherche, Developpement & Consulting - Bruxelles SA (RDC); QinetiQ UK Fuel and Lubricants Testing Business (OALTB).FAL is a food testing laboratory which provides chemical and microbiological services for food producers in the UK, and has been bought for around £6m. RDC specialises in environmental impact consulting for consumer products industries. The acquisition cost was in the region of £5m.OALTB, a fuel and lubricant analysis and consulting business in the UK, has been acquired by Intertek from QinetiQ Group for a consideration of £0.5m in an asset purchase agreement. --jh