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Intertek sees second-half pick-up in growth

Intertek is going from strength to strength, the CEO claimed. Shares were down 3% in early deals.

Intertek Group -

Quality & safety solutions provider Intertek PLC (LON:ITRK) expects to deliver good organic revenue growth with solid margin progression and strong cash conversion in 2019.

The first 10 months of the year saw revenue rise 7.4% (4.7% on a constant currency or CC basis) to £2.49bn from a year earlier.

The July to October period saw revenue growth of 3.6% on a like-for-like CC basis, driven by a 7.6% uplift in revenue from the Resources division; the products and trade arms notched up growth rates of 2.6% and 3.5% respectively.

The acquisitive group said its year-end net debt guidance range of £670mln to £700mln remains unchanged, leaving it well-placed to pull the trigger on any potential acquisitions.

Looking beyond 2019, the global Assurance, Testing, Inspection and Certification industry will continue to benefit from exciting growth prospects, Intertek claimed.

These prospects will be driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex supply chains, technological innovations and increased demand for higher quality and more sustainable products, it declared.

“We are benefiting from higher demand from our customers for our industry-leading Total Quality Assurance (TQA) solutions in our Products, Trade and Resources divisions,” asserted André Lacroix, the chief executive officer of Intertek.

“2019 will mark another year of continuous progress in revenue, margin and cash as we expect to deliver good organic revenue growth with solid margin progression at constant rates and strong cash conversion. Our good organic revenue growth at constant currency at the Group level in 2019 will be driven by good organic growth in our Products division, good organic growth in our Trade division and by robust organic growth in our Resources division,” he added.

Quick facts: Intertek Group

Price: 6034 GBX

LSE:ITRK
Market: LSE
Market Cap: £9.74 billion
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