Intertek sees slight slowdown in third quarter

Quality and safety testing group Intertek saw revenue growth slow slightly in the third quarter though organic sales held up strongly.

Total reported revenues grew at a 20.1% rate in the 10 months to October 31st, down on the 29.9% growth seen in the first half (to June 30th).

However, organic revenue growth at constant exchange rates (excluding acquisitions) was 9.1% during the period, only slightly down on the 9.9% rate in the first six months of the year.

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All business divisions were said to have seen strong organic revenue growth in the third quarter, though the strongest performance came mainly from the Americas, Asia and the Middle East, "with Europe growing below the group average".

The firm said that the fast growth in the Industry & Assurance and Commodities divisions in the first half moderated as expected to high single-digit rates. Meanwhile, growth in the Consumer Goods and Commercial & Electrical divisions continued at high single digits and the Chemicals & Pharma division saw growth improve.

"With global economic conditions remaining uncertain, the group will ensure operations are aligned with customer demand," Intertek assured.

The firm said that full-year adjusted operating profit margins are expected to be flat on last year.

"We see good structural growth across many of our industries and geographies while, as expected due to the unstable global economic conditions, growth in other markets has moderated from the very strong levels seen in the first half," said Chief Executive Officer Wolfhart Hauser.

"The compelling long term structural drivers for quality and safety services across a broad range of industries and geographies and our focus on supporting our customers will help our business to grow organic revenue at high single digits through the economic cycle," he said.

Intertek said that there has been no significant change to its financial position since the end of the first half, when net debt was £618.5m.