Intertek pleased with year-to-date performance

(Sharecast News) - Intertek reported "solid" group like-for-like revenue growth of 2.7% for the year-to-date, at constant currency, with the products division delivering a "robust" 7.4%.
The FTSE 100 testing and certification company said momentum accelerated in March and April, with 9.3% like-for-like revenue growth at constant currency, as products rose 13.8% and trade advanced 5.3%.

It said "strong" controls on pricing, cost and cash remained in place, adding that it was on track to deliver its 2021 targets for revenue, margin accretion and free cash flow.

"We are on track to deliver our full year targets of good like-for-like revenue growth at constant currency with year on year margin progression and a strong free cash flow performance notwithstanding the continuing lockdown restrictions in several markets impacting the supply chain of our clients and mobility," said chief executive officer André Lacroix.

"We expect our products division to deliver robust like-for-like revenue growth, our trade division to deliver solid like-for-like revenue growth, and our resources division to be broadly stable."

On 13 May, Intertek announced that it had entered into an agreement to acquire SAI Global Assurance, to "scale up" its assurance offering and take advantage of growth opportunities in the "high margin and capital light" assurance market.

"All of us at Intertek are truly energised by the quality assurance growth opportunities moving forward as the Covid-19 global pandemic has made the case for 'Total Quality Assurance' (TQA) clearer and stronger for our clients," Lacroix said.

"The exciting structural growth drivers in the $250bn global quality assurance market pre-Covid-19 now include a wide array of new opportunities in many areas, including more outsourcing opportunities.

"With our industry leading capability and expertise, innovation and insight, Intertek is uniquely positioned to seize the compelling growth opportunities."

At 0815 BST, shares in Intertek Group were down 1.41% at 5,864p. Intertek Group