Intertek Group PLC (LON:ITRK), today announced half year result 2018.
Highlights
· Group revenue of £1.348bn: +3.9% at constant rates, -1.8% at actual rates
· Good organic revenue growth of +3.4% at constant rates: Products +5.7%, Trade +0.7%, Resources -0.7%
· Acquisitions in attractive growth and margin sectors expanding our TQA value proposition
· Portfolio strength and cost discipline driving adjusted margin progression: +40bps at constant rates, +50bps at actual rates
· Robust adjusted diluted EPS growth: +6.8% at constant rates, +0.9% at actual rates
· Statutory diluted EPS growth of +7.6% at constant rates, +1.5% at actual rates
· Continuous focus on cash with working capital reduction of 6.5% at actual rates
· Half year dividend payment of 31.9p, up 35.7%, in line with our new dividend policy
A video outlining the Half Year Results is available on the Group’s website – http://www.intertek.com/
Intertek Group, André Lacroix: Chief Executive Officer statement
“The Group has continued to deliver progress in revenue, margin and cash performance in the first half at constant rates, reflecting the Group’s performance management discipline focused on margin accretive revenue growth with strong cash conversion and accretive disciplined capital allocation. We are well positioned to deliver in 2018 good organic revenue growth with moderate group margin progression at constant currency and strong cash conversion.
The Products and Trade related divisions, which represent 94% of the Group’s earnings, delivered an excellent performance with revenue growth of 4.9% and adjusted margin expansion of 40bps at constant rates, while our performance in the Resources related division showed improved momentum. The recent acquisitions in high margin and high growth areas performed well.
In line with our new dividend policy that targets a payout ratio of circa 50%, and fueled by our high margin and highly cash generative earnings model, we have announced a half year dividend of 31.9p, an increase of 35.7%.
We are on track on our ‘good to great’ journey, making progress on both performance and strategy. We continue to be uniquely positioned to benefit from the GDP+ organic revenue growth prospects in the $250 billion global Quality Assurance Industry in the medium to long term, leveraging our high quality and highly cash generative earnings model.”
