Intertek Group plc (LON:ITRK) has lifted its full year dividend 19% as it achieved an increase in earnings and said it expects solid revenue growth in 2017.
The product testing, inspection, and certification group reported profit before tax of £387.3mln in 2016, compared to £319.2mln the previous year.
Revenue rose to £2.5bn from £2.1bn with recent acquisitions contributing £242mln.
During the period the group acquired Italian food and safety business Food Institute Trust – Italia SRL and cyber security company EWA-Canada Ltd.
A strong performance in the products and trade divisions – representing 90% of earnings – mitigated poor results in the resources business, which was hit by a reduction in clients’ spending on energy capital.
Intertek raised the dividend per share to 62.4p from 52.3p, which the company said reflects its earnings progression, strong financial position and confidence in the group’s structural growth drivers into the future.
The group reported free cash flow of £318mln, a 35.2% increase on the previous year, driven by 139% cash conversion.
“We expect to deliver a solid organic revenue growth performance at constant currency in 2017 with moderate group margin expansion,” the company said in a statement.
The products and trade divisions are expected to report organic growth while Intertek believes market conditions will remain challenging in resources related businesses.