Intertek 2011 Half Year Results

01 Aug 2011

Intertek Group plc ("Intertek"), a leading international provider of quality and safety services, announces its half year results for the period ended 30 June 2011.

Strong growth in revenue and earnings

Highlights

  • Strong revenue growth of 17% to £763m; constant currency organic growth of 8.3%
  • Adjusted operating profit¹ margin 15.6%
  • Diluted EPS¹ increase of 12%
  • Good progress on Moody integration; savings delivery ahead of schedule
  • Three further acquisitions completed since 30 June 2011 for £11m
  • Restructuring of Finance and IT to save £10m per annum by 2014
  • Interim dividend increase of 15%
Adjusted results (1) 2011 2010Growth
as reported		Growth
at constant rates
Revenue£763.1m £652.6m+ 17%+ 18%
Operating profit£118.7m £103.7m+ 14%+ 17%
Profit before tax£110.6m £97.3m+ 14%
 
Diluted earnings per share45.4p 40.6p+ 12%
 

(1) Adjusted results are stated before separately disclosed items which include amortisation of acquisition intangibles £9.5m (H1 10: £6.4m), acquisition and related integration costs £9.5m (H1 10: £3.6m), restructuring and other one-off costs £6.3m (H1 10: £2.8m). See Presentation of Results and note 3 to the Interim Financial Statements.

Statutory results 20112010Change
Operating profit£93.4m £90.9m+ 3%
Profit before tax£85.3m £84.5m+ 1%
Diluted earnings per share32.6p 34.6p- 6%
Basic earnings per share33.2p 35.2p- 6%
Interim dividend per share10.7p 9.3p+ 15%

 

Wolfhart Hauser, Chief Executive Officer, commented:

"Intertek has delivered strong growth, successfully completed the strategic acquisition of Moody International and invested for future profit growth in the first half of the year.

Moody is performing very well, benefiting from structural recovery, rapid integration with the Intertek service and customer portfolio and achieving planned cost reductions ahead of schedule. For the two months post completion, pro forma revenue growth was 13% on an operating profit margin of 13%.

Our businesses continue to perform well overall, with strength in some areas offsetting slower growth in others. Commodities, Commercial & Electrical and the recently acquired Moody business are expected to continue to grow very well in the second half of the year. Consumer Goods is expected to make progress from the slower growth in the first half with its long term growth drivers remaining in place.

Whilst we are mindful of the uncertain economic conditions, we expect to grow revenue at high single digits on an organic constant currency basis for the full year with a margin close to that of the prior year."

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 9.30am today at JPMorgan Cazenove, 20 Moorgate, London EC2R 6DA. A copy of the presentation will be available on the website later today.

The 2011 Half Year Report will be available to download from the website later today. If you wish to receive a hard copy of this report, please contact Intertek by email to investor@intertek.com or request by calling +44 (0) 20 7396 3400.

Corporate website: www.intertek.com

View the 2011 Half Year Report (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 1,000 laboratories and offices and 30,000 people in over 100 countries around the world.

Intertek Group plc (LSE: ITRK) is listed on the London Stock Exchange and is a constituent of the FTSE 100 index.

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