Interim Management Statement
18 Nov 2010
Intertek Group plc ("Intertek"), the leading provider of quality and safety services to a wide range of industries around the world, today releases its Interim Management Statement for its results from 1 January to 31 October 2010 ("the period"). All comments in this statement reflect comparisons with the same period during 2009. The Group's full year results to 31 December 2010 will be announced on 7 March 2011.
At constant exchange rates, organic revenue for the period increased by 6.5%. After taking into account acquisitions and a net favourable currency effect, total reported revenue increased by 9.2% in the same period.
The Group has seen market conditions strengthen across many parts of its business in the second half and all divisions continued to grow revenues in the first ten months of the year. The Group has increased investment to capture growth opportunities, and since April when markets started their good recovery, the Group has increased headcount by around 1,500 (6%).
Consumer Goods is showing an improved rate of growth since the half year, now that the comparables of exceptionally high demand for toy testing following enactment of the Consumer Product Safety Improvement Act in the US have ended. New labs have been added in various areas, in particular in food. Revenues in Commercial & Electrical increased, with the strongest growth in lighting and renewable energy product testing. Oil, Chemical & Agri, Analytical Services and Industrial Services revenues all grew well and Minerals exhibited very strong growth. However, some markets are still showing weakness including oil cargo inspection in North America, industrial infrastructure, building products and pharmaceutical.
These overall market conditions and revenue growth are leading to an improvement in the second half adjusted operating profit margin compared to the first half. Intertek expects the second half margin to be in-line with that of the equivalent prior year period resulting in a full-year margin slightly below the prior year.
Six acquisitions for a consideration of £40 million have been completed year-to-date and further acquisitions are expected during the remainder of the year. The balance sheet remains healthy with net debt as at 31 October 2010 of £186 million compared to £240 million at 30 June.
Wolfhart Hauser, Chief Executive Officer, said: "We are seeing good progress towards more normal trading conditions in many of our business segments that had been weaker during the global downturn. We expect our full year rate of organic revenue growth to be at the high end of the mid single digits range. Looking forward, we expect this year-to-date level of organic growth to continue into 2011 supplemented by bolt-on acquisitions. We remain cautious on further growth acceleration due to the uncertain effect of austerity measures on economies in many countries."
Contacts
Aston Swift / Sarah Ogilvie
Telephone: +44 (0) 20 7396 3400
aston.swift@intertek.com / sarah.ogilvie@intertek.com
Richard Mountain, Financial Dynamics
Telephone: +44 (0) 20 7269 7291
richard.mountain@fd.com
ABOUT INTERTEK
Intertek is a leading provider of quality and safety solutions serving a wide range of industries around the world. From auditing and inspection, to testing, quality assurance and certification, Intertek people are dedicated to adding value to customers' products and processes, supporting their success in the global marketplace. Intertek has the expertise, resources and global reach to support its customers through its network of more than 1,000 laboratories and offices and over 26,000 people in more than 100 countries around the world.
Intertek Group plc (LSE: ITRK) is listed on the London Stock Exchange and is a constituent of the FTSE 100 index.
This Interim Management Statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Interim Management Statement are based on the knowledge and information available to the Company's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward-looking statements.