Intertek Group PLC (LSE:ITRK) was one of the biggest FTSE 100 fallers on Tuesday, down 5.3% to 4,612p after the testing and inspection group reported a slowdown in organic growth in the past quarter, though full-year profit is expected to meet forecasts.
For the four months to October, revenue was up 2.8% to £1.2 billion, while revenue rose 4.1%, slightly below the 4.5% consensus, due in part to weakness in Transport Technologies and tougher comparators. This compares with 4.5% organic growth in the first half.
Key divisions continued to perform well. Consumer Products grew 5.4% organically, while Business Assurance rose 6.6%, Industry & Infrastructure saw growth improve to 6.0%, supported by double-digit gains in minerals and improvement in building & construction.
Intertek confirmed full-year profit is expected in line with expectations, with analysts forecasting adjusted EBITA of around £611 million.
Management also provided initial guidance for FY26, targeting mid-single digit organic growth, margin progression and strong cashflow.
After hitting a three-year high just shy of 5,580p early in the year, before falling to a 15-month low in April, the shares had recovered to 5,130p earlier this month but had been losing momentum into the update.
Analysts at Panmure Liberum said LFL growth was consistent with their estimates, "and showed a slight reduction in growth rate due to known strong comps".
"However, importantly, there is strength in high margin areas, notably Consumer Products (5.4%) and Corporate Assurance (6.6%). There was strong margin progression driven by divisional mix, pricing, operating leverage, cost controls and productivity improvements."