TOP NEWS: Intertek backs outlook and targets return to peak margin
Intertek Group PLC on Friday reiterated financial guidance as it reported healthy, broad-based sales growth in 2024 to date.
In a trading update for the four months to April, the London-based consumer product testing and certification agency said revenue rose 7.5% at constant currency to £1.08 billion, or 2.0% at actual rates.
In the first four months of 2023, Intertek reported revenue of £1.06 billion, up 11% from £951.3 million a year earlier.
Shares in Intertek rose 1.9% to 5,050.00 pence in London on Friday morning. The wider FTSE 100 was down 0.5%.
Chief Executive Andre Lacroix said: ‘We have had a strong start to 2024.’
‘Recent acquisitions are performing well, benefitting from the scale-up opportunities within our global network, and we continue to invest in organic and inorganic opportunities in high-growth and high-margin segments.’
Intertek said growth was broad-based with like-for-like revenue growth of 6.2% in Consumer Products, 7.6% in Corporate Assurance, 9.9% in Health and Safety, 4.2% in Industry and Infrastructure and 9.4% in World of Energy.
Margin progression was driven by pricing, operating leverage, cost controls and productivity improvements, while cash management delivered strong free cash flow.
Intertek reaffirmed its outlook for 2024 outlook for mid-single digit like-for-like revenue growth, margin progression and strong free cash flow.
‘We are well positioned to get back to our peak margin of 17.5% and beyond in the medium-term, capitalising on the revenue growth acceleration we are seeing for our ATIC solutions, our disciplined performance management and our investments in high growth and high margin segments,’ Lacroix added.
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