Interim Management Statement

RNS Number : 9495E

Intertek Group PLC

17 May 2013

 



Stock Exchange Release

17 May 2013, 7.00am London, UK

Interim Management Statement

Intertek Group plc (Intertek), the leading quality solutions provider to industries worldwide, today releases its Interim Management Statement for the period since 31 December 2012. Where stated, financial results are for the four month period from 1 January to 30 April 2013 ("period"). All comparative comments in this statement reflect comparisons with the corresponding period during 2012.

Revenue grew 9.9% in the period. This was made up of organic growth at constant exchange rates of 7.0%, favourable currency movements and the benefit of acquisitions made in 2012 and 2013.

Within Industry & Assurance, technical inspection of energy assets grew well, driven mainly by capital investment going into the oil, gas, power and renewables industries, whilst growth from Business Assurance was weaker.

In Commodities, revenue from minerals, especially in Australia, Brazil and the Philippines, declined more sharply than expected as a result of a reduction in mining activities leading to lower sample volumes and price competition. This decline follows strong growth in the prior year and is characteristic of this more cyclical industry. Oil cargo inspection grew well in the period.

Within Consumer Goods, growth in textiles continues to be strong, with good demand also in factory auditing services. Toys and hardlines were flat, whilst awaiting an improvement in trading from a tighter regulatory environment expected for the mid-year buying season.

In Commercial & Electrical, the increased investments made in 2012 are ramping up and starting to have a positive effect on the volume of testing. Electric vehicles and lighting continue to register strong growth, however slower demand in some European countries for electrical testing, a weaker renewable market and strong comparables for medical device testing as a result of new regulations in 2012 moderated the division's overall growth rate.

Chemicals & Pharmaceuticals had a mixed start to the year with health, environmental and regulatory and pharmaceutical services growth being much stronger than chemicals and materials.

Intertek continues to expand its network and broaden its capabilities through organic capital investment and through acquisition. New facilities were opened in USA, UK, South Africa and South East Asia. Four acquisitions for a total of £9 million were completed in the period and there is a good pipeline of opportunities. The Group remains well positioned to deliver its strategy of adding complementary capabilities to its portfolio and to anticipate changing market needs through internal and external investment.

The adjusted operating profit for the Group increased slightly in the period. The margin is below last year's level following the impact of the sharp profit decline in the minerals business. This minerals decline is now expected to continue into the second half of the year as that sector overall experiences a more prolonged downturn.

There has been no material change to the Group's financial position in the period since the last reported balance sheet date of 31 December 2012.

Wolfhart Hauser, Chief Executive Officer of Intertek, commented: 

"Revenue grew well overall in the period against high comparable growth from last year and in a more variable economic environment than we had expected at the beginning of the year. Looking ahead, whilst we expect the margin drag from the minerals business to reduce in the second half, its effect is expected to leave full year Group margin broadly stable with the prior year.

"We continue to capture and drive growth in our business through organic investment, new services and innovation, and value-adding acquisitions that add complementary capabilities and services.

"Our focus on delivering quality solutions to our local and global customers across our portfolio of businesses in over 100 countries will help to ensure we maintain organic revenue growth at high single digits for the year and through the longer term."

The Annual General Meeting of Intertek is held today 17 May 2013, at 12 noon at The Westbury Hotel, Conduit Street, London W1S 2YF.

The Group's half year results to 30 June 2013 will be announced on Monday 29 July 2013.

-ends-

Contacts

Aston Swift / Sarah Ogilvie Intertek

Telephone: [phone]     

[e-mail] / [e-mail]

Richard Mountain / Susanne Yule FTI Consulting

Telephone: [phone]

[e-mail] / [e-mail]

Corporate website: www.intertek.com 

About Intertek

Intertek is the leading quality solutions provider to industries worldwide.  From auditing and inspection, to testing, training, advisory, quality assurance and certification, Intertek adds value to customers' products, processes and assets.  With a network of more than 1,000 laboratories and offices and over 35,000 people in more than 100 countries, Intertek supports companies' success in a global marketplace. Intertek helps its customers to meet end users' expectations for safety, sustainability, performance, integrity and desirability in virtually any market worldwide.  Visit www.intertek.com

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.

 

END

 

 

IMSBIGDUDBBBGXL