Interim Management Statement
Intertek Group PLC
09 May 2008
9 May 2008, 7:00am (UK)
Intertek Group plc
Interim Management Statement
Intertek Group plc ('Intertek'), a leading international provider of quality and
safety services to a wide range of industries, today releases its first Interim
Management Statement. The Annual General Meeting of Intertek will be held today
at 11.00am at The Westbury Hotel, Conduit Street, London, W1S 2YF. The half year
results to 30 June 2008, will be announced on Monday 4 August 2008.
Overview
Intertek has made a strong start to the financial year with trading in line with
management expectations.
Consumer Goods continues to perform very well with strong revenue growth. Toys
and hardlines testing in South China and Hong Kong are driving this growth due
to increased demand for quality and safety services from retailers and
manufacturers who have heightened concerns about product recalls and the
consequential direct costs and reputation damage to their businesses. Textiles
testing is continuing to grow well driven by increasing product variety and
quality requirements. Inspection, which accounts for approximately 10% of the
division, is growing less strongly, in line with slowing global trade flows.
Despite the continuing mix effect on the margin due to higher growth in lower
margin businesses, the overall margin is stable and in line with our
expectations.
Commercial & Electrical is performing very well with organic growth and margin
growth being supplemented by acquisitions. Market share gains in certification
are being made in both the US and European markets with some significant new
orders. To date, other than continued slow growth in automotive components
testing in the US, there is no indication that the weak US economy is having any
impact on testing or certification demand.
Oil, Chemical & Agri is performing well overall with a stable margin. Revenue
and profit growth in the Oil, Chemical & Agri sector of this division has grown
strongly, mainly due to high demand for petroleum cargo inspection in the
Americas and Asia. Likewise underlying revenue growth in the Minerals sector has
been strong, but the operating profit has not grown as fast due to investment
and start up costs in China and on new major contracts in Australia. In
Analytical Services, most service lines have reported strong performance, but
not enough overall to compensate for delays in a few large orders in
pharmaceutical and downstream activities. It is expected that these
underperforming laboratories will be on track by year end.
Government Services, as expected following the termination of the Ecuador
contract at the end of February 2008, is showing flat revenue growth but
maintaining profit margins.
Wolfhart Hauser, Chief Executive Officer of Intertek, said:
'We have made a strong start to the financial year with trading in line with our
expectations. We have continued our strategy of making bolt-on acquisitions and
to date have completed eight, for an initial cash consideration of £35m plus up
to £12m deferred. The divisional reorganisation, from four to seven divisions to
better capture the rapid growth opportunities in our key industry sectors, is
progressing well.
'To date, market conditions remain supportive in our key industry sectors. We
will continue to capture additional market opportunities based on our focused
strategy of offering added-value services and supporting customers in their
global trade. We expect that 2008 will be another good year for Intertek.'
-ends-
Contacts
Aston Swift / Sarah Ogilvie
Telephone: +44 (0) 20 7396 3400
aston.swift@intertek.com / sarah.ogilvie@intertek.com
Richard Mountain / Sophie Kernon, Financial Dynamics
Telephone: +44 (0) 20 7831 3113
richard.mountain@fd.com / sophie.kernon@fd.com
Notes to Editors
ABOUT INTERTEK
Intertek (LSE: ITRK) 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 21,000 people in 110 countries around the
world.
www.intertek.com
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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