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Intertek sees improvement in quarterly revenue but expects full-year decline

Revenue shed 6% in the quarter to October, recovering from the 13% fall in the previous three months

Intertek Group -

Intertek Group PLC (LON:ITRK) posted an improvement in quarterly revenue though full-year sales are still expected to decline by 5%.

The quality assurance provider saw revenue dip 6% in the quarter to October, recovering from the 13% fall in the previous three months though it had only dipped 5% in the first quarter to April.

READ: Intertek poaches Reckitt Benckiser top executive for chief financial officer role

The products segment, which accounts for 81% of earnings, dropped 4% in the third quarter, while trade and resources, accounting for 12% and 7% of earnings respectively, were both down 10%.

Activities in Assurance, Testing, Inspection and Certification are weighted towards the second half of the year so underlying margins before currency movements are expected to improve as well.

The FTSE 100 firm expects to cut debt to £570-590mln and is eyeing acquisition opportunities in high-margin and high-growth areas.

"The recovery from the Covid induced trading lows of Q1 and Q2 in particular appear only in-line with our below-consensus forecast track," analysts at Shore Capital said.

"Indeed, Intertek’s recovery trajectory needs to strengthen in our estimation in its final two month period to end December to make our revenue numbers for the year."

Shares lost 6% to 5,710p on Tuesday morning.

--Adds analyst comment, shares--

Quick facts: Intertek Group

Price: 5542 GBX

LSE:ITRK
Market: LSE
Market Cap: £8.94 billion
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