LONDON (Alliance News) - Intertek Group PLC said Tuesday that it remains well positioned to deliver good organic revenue growth, moderate margin progression at constant currency and strong cash conversion for the full year after reporting a modest increase in interim profit.
The testing, inspection and certification services provider also said it will lift its interim dividend by 35.7% to 31.9 pence per share, from 23.5p paid a year ago, in line with its new dividend policy.
The UK listed company recorded pretax profit of GBP196.6 million for the six months to June 30, up from GBP190.6 million in the year ago period, on a revenue of GBP1.35 billion and GBP1.37 billion, respectively.
The rise in profit was attributed to higher operating margins, which stood at 16.8% versus 16.3%, resulting from positive operating leverage, margin accretive divisional mix, portfolio review and margin accretive acquisitions.
The slide in first half revenue was due to appreciation of sterling against most of the company's trading currencies.
Intertek earlier in August inked an agreement with private equity Riverside Co to acquire US-based food-industry support firm Alchemy Investment Holdings Inc for USD480 million cash. Austin, Texas-based Alchemy provides software solutions for employee communications, coaching & reinforcement, training and operational performance.
Shares in Intertek were trading 7.2% lower at 5,446.00p each on Tuesday morning.
Intertek Group (ITRK)