UK product testing firm Intertek weighs break up, shares jump

Tue, 14th Apr 2026 09:31

* Strategic review sends Intertek shares up as much as 14%

* Could ⁠split energy/infrastructure from testing/assurance

* Reaffirms 2026 outlook, posts 5.4% revenue growth in Q1

April 14 (Reuters) - British product ‌testing and certifications group Intertek is considering splitting into separate energy/infrastructure and testing/assurance businesses, it said on ⁠Tuesday, sending its shares as much as 14% ⁠higher.

The company said the move could help boost growth and returns for shareholders and that, if it decided to proceed, the plan could be implemented by mid-2027.

RBC analysts said any demerger could lead to ‌higher costs and reduced investments, but added that consolidation in the sector suggested neither of the two businesses would remain independent for long.

Shares in London-listed Intertek were up 11% at 0755 GMT, compared with a 0.3% rise in the FTSE 100 index.

Several British firms have looked to reshape their businesses as tougher market conditions ‌push them to rethink the path to maximum returns.

Outsourcing firm Capita sold its private sector contact centre business in March, ‌while engineer Smiths Group last year sold its baggage-screening unit. Chemicals company Johnson Matthey is in the process of selling its catalyst technologies business.

SCALE AND GROWTH

The potential separation of Intertek Energy & Infrastructure and Intertek Testing & Assurance could be via either a sale or a spin-off, ‌the company said.

"‍We believe that two specialist scale global ATIC (assurance, testing, inspection, and certification) businesses could be best positioned to accelerate growth and deliver greater value for shareholders," ⁠CEO ⁠André Lacroix said.

Intertek Testing & Assurance reported 5.6% like-for-like revenue growth ‌in 2025 and contributed just over half of the group's revenue, according to the company's website. Intertek Energy & Infrastructure's revenue rose 2% on the same basis.

The company reaffirmed its ‌guidance for mid-single-digit like-for-like revenue growth this year after a 5.4% increase in the first quarter, which JP Morgan analysts described as "reassuring".