Intertek growing in testing times

Intertek, the testing and quality assurance company, said year-on-year organic revenue growth for the ten months to the end of October was 8%, in line with the figure published in the half year update in August.

Adding revenues from acquisitions and currency effects, total reported revenues year-to-date are up 26% on the same period of 2010.

As expected, the Consumer Goods division, which had seen a slow-down in growth in the first half of the year, has improved its performance in the second half. On the other hand, both the Commercial & Electrical and the Chemicals & Pharmaceuticals divisions are seeing slightly lower growth rates than in the first half, as they run up against tougher comparatives.

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The Commodities unit continued to report strong organic revenue growth, driven primarily by growth in the Minerals and the Government & Trade Services industries. Industry & Assurance, including the recently acquired Moody business, is progressing well, benefiting from the integration of Moody with Intertek and a strong structural recovery.

The firm says operating margin for the period, including the dilutive effect of of its spring acquisition of Moody, has left Intertek's margin at roughly the same level as the equivalent period of 2010.

Intertek's Chief Executive Wolfhart Hauser said of today's results:

"Our organic growth drivers remain strong, underpinned by the diversity of our different industries, services and geographies. Whilst there remains significant economic uncertainty, this diversity supports our objectives of continued high single digit organic revenue growth."

In the year to date Intertek's share price has risen 6.25%, against the FTSE 100 which is down 6.5%. Over the last five years, Intertek is up 132%.

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