(Alliance News) - Intertek Group PLC on Wednesday reported strong revenue growth so far in 2022, and the London-based quality assurance service provider said this should improve further once its business in China gets back to normal.
Intertek revenue was GBP951.3 million in the four-month period covering January 1 to April 30, up 11% from GBP855.4 million a year before. Broad-based like-for-like revenue grew 6.8% to GBP911.5 million from GBP853.8 million. Like-for-like revenue growth outside China was 6.8%.
"China accounts for 20% of Intertek revenues and since March, the Covid-19 lockdown restrictions have caused a temporary disruption to our business on a regional basis. We are planning for our Chinese business to be back to normal by July 1, and that trading will be in line with the good like-for-like revenue growth we saw in China in the January-February period," Intertek explained.
Its most recent acquisitions SAI Global Assurance and JLA Brasil Laboratorio de Analises de Alimentos SA delivered GBP39.4 million of additional revenue at constant rates.
Intertek said it is seeing increased demand for its total quality assurance solutions despite the impact of Covid-19 lockdowns in China.
"The supply chain disruption being experienced by corporations across multiple industries in the last two years has made the need for comprehensive risk-based quality, safety and sustainability assurance more critical than ever. Companies are investing in quality assurance to build greater resilience and safety, whilst innovating to deliver new high-quality products and services as consumer expectations rapidly evolve," Intertek said.
The firm sees itself "well-positioned to deliver on our guidance for 2022 with robust like-for-like constant currency revenue growth for both the group as a whole and for each of our divisions, further margin progression at constant currency and strong free cash flow."
The company will release its half-year results to June 30 on July 29.
Intertek shares were 0.4% higher at 4,630.00 pence each in London on Wednesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Intertek Group (ITRK)