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The Markets
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Business & education services

Intertek surges to top of FTSE 100 on plan to split business in two

Shares in Intertek Group PLC (LSE:ITRK) jumped almost 13% to 4,310p after it launched a strategic review that could lead to a break-up of the business.

The FTSE 100-listed assurance, testing, inspection and certification (ATIC) group said it is evaluating a potential spin-off of its Energy & Infrastructure division, either through a sale or demerger, to create two standalone global businesses.

Chief executive André Lacroix said: "We believe that two specialist scale global ATIC businesses could be best positioned to accelerate growth and deliver greater value for shareholders."

He said both are "high-quality businesses" that can "unleash their full potential through a focused specialist portfolio strategy, sharper capital allocation, and faster in-market execution."

The £1.9 billion revenue Testing & Assurance arm would be a market leader with a large portfolio of major brands as customers, and with "attractive growth drivers ahead".

Energy & Infrastructure, which made £1.6 billion of revenue last year, is "positioned to seize the growth opportunities created by investment in infrastructure… and the fast-changing global energy system".

Alongside the review, Intertek reported a strong start to the year, with like-for-like revenue growth of 5.4% in the first quarter.

Growth was driven by consumer products, corporate assurance and health and safety, while its energy division remained stable.

Lacroix reiterated full-year guidance for mid-single-digit revenue growth, margin progression and strong cash generation, as the group continues to execute its existing strategy while the review runs through to mid-2027.

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