2010 Annual Financial Report Announcement
07 Mar 2011
Intertek Group plc ("Intertek"), the leading international provider of quality and safety services, announces its full year results for the year ended 31 December 2010.
Strong results - capturing recovering growth
Highlights
- Total revenue growth of 11%
- Organic revenue growth of 7.7% at constant currency
- Adjusted operating profit1 growth of 9%
- Adjusted operating profit1 margin 16.6%
- EPS and Dividend increase of 10%
- Acquisition of Moody for approximately £450m
| Year ended 31 December | 2010 | 2009 | Growth as reported | Growth at constant currency |
|---|---|---|---|---|
| Revenue | £1,374.2m | £1,237.3m | + 11% | + 9% |
| Adjusted operating profit¹ | £227.5m | £209.0m | +9% | + 6% |
| Adjusted profit before tax¹ | £211.9m | £191.5m | + 11% | |
| Adjusted diluted earnings per share¹ | 89.4p | 81.5p | + 10% | |
| 1 Adjusted results are stated before separately disclosed items which include amortisation of acquisition intangibles of £12.9m (2009: £12.8m), acquisition and related integration costs of £5.3m (2009: £2.5m), certain claims and settlements of £2.8m (2009: £3.8m) and no restructuring costs (2009: £3.2m). (See note 2) | ||||
| Statutory | ||||
| Year ended 31 December | 2010 | 2009 | Growth as reported | |
| Operating profit | £206.5m | £186.7m | + 11% | |
| Profit before tax | £189.9m | £169.2m | + 12% | |
| Basic earnings per share | 80.7p | 72.4p | + 11% | |
| Dividend per share | 28.1p | 25.5p | + 10% | |
Wolfhart Hauser, Chief Executive Officer, commented:
"Intertek has produced strong results for the year with a notable acceleration in the second half. Market conditions improved as the year progressed and we invested in both people and assets to capture this recovering growth.
We are pleased to announce today that we have agreed to acquire Moody International (Moody) for approximately US$730 million (GBP450 million) from companies controlled by Investcorp Securities Limited. Moody is a leading quality and safety services provider to the global energy industry and a global provider of systems certification services. Further information on this acquisition is provided in a separate announcement today.
As market conditions continue to improve, the enlarged Group is very well positioned to continue its record of strong organic revenue growth of high single digits. With this acquisition, we expect the Intertek operating profit margin to be broadly similar in 2011 with that of 2010 and we are confident that, over the medium term, we will see the Group's overall margin progressively increase."
Contacts
For further information, please contact
Aston Swift, Investor Relations
Telephone: +44 (0) 20 7396 3400 aston.swift@intertek.com
Richard Mountain, Financial Dynamics
Telephone: +44 (0) 20 7269 7121 richard.mountain@fd.com
Analysts' Meeting
There will be a meeting for analysts at 8.30am today at JPMorgan Cazenove, 20 Moorgate, London EC2R 6DA. A copy of the presentation will be available on the website later today.
The 2010 statutory audited Report and Accounts will be available to download from the website later today. If you wish to receive a hard copy of this Report and Accounts, please contact Intertek by email to investor@intertek.com or request by calling +44 (0) 20 7396 3400.
View the 2010 Annual Report: Interactive web page or 3.7 MB PDF.
About Intertek
Intertek is a leading provider of quality and safety solutions serving a wide range of industries around the world.
From auditing and inspection, to testing, quality assurance and certification, Intertek people are dedicated to adding value to customers' products and processes, supporting their success in the global marketplace.
Intertek has the expertise, resources and global reach to support its customers through its network of more than 27,000 people in over 1,000 laboratories and offices in more than 100 countries around the world.