Intertek surges after posting 16% growth in first-half profit

(ShareCast News) - Shares in Intertek rocketed after the company posted a 16% rise in first-half pre-tax profit on the back of improved revenue momentum, margin progression and strong cash generation, and said it was on track to meet its full-year targets.Pre-tax profit rose to £139.1m from £119.8m in the same period last year, on revenue of £1.06bn, up 3.5% from £1.02bn. The operating margin, meanwhile, came in at 14.5% from 12.8% and the company raised its interim dividend by 6.3% to 17p per share.Intertek, which provides quality and safety solutions to a wide range of industries, said it benefited from good growth in its products-related divisions and trade-related businesses which was partially offset by the continuing challenging trading conditions in Industry Services.Chief executive officer Andre Lacroix said: "Looking further ahead the global testing, inspection and certification market will continue to benefit from exciting growth prospects driven by global trade flows, global demand for energy, expanding regulations, more complex supply chains, technological innovation and increased demand for higher quality and more sustainable products."RBC Capital Markets said the results were strong, with pre-tax profit 3% ahead of expectations and better-than-forecast margins.Shore Capital, meanwhile, said: "These results come against a background of weak like-for-likes, but also against continuing economic pressures in sectors including commodities and oil and related chemicals, so this performance improvement relative to expectations is welcome."It added that it now feels a little more assured on prospects, with the commodities division in particular seeing an improved performance. At 11:28, Intertek shares were up 13% at 2,757p.