Intertek delivers 10 per cent rise in revenue

Intertek Group, which provides solutions to industries worldwide, has posted a 9.9 per cent year-on-year rise in revenue for the first four months of the year, driven by organic growth, favourable currency movements and the benefit of acquisitions made in 2012 and 2013.

Intertek Group, which provides solutions to industries worldwide, has posted a 9.9 per cent year-on-year rise in revenue for the first four months of the year, driven by organic growth, favourable currency movements and the benefit of acquisitions made in 2012 and 2013.

Divisionally, Industry & Assurance saw the 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 the company had expected. This was primarily 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, the group said.

Within Consumer Goods, growth in textiles continued to be "strong", with good demand also in factory auditing services. The firm said 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, it said 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 continued 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.

Wolfhart Hauser, Chief Executive Officer of Intertek, said: "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."

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021