Intertek Group (LON:ITRK), a leading Total Quality Assurance provider to industries worldwide, has released its November Trading Update for the period from 1 January to 31 October 2019. All comparative comments in this statement reflect comparisons with the corresponding period during 2018. The Group’s full year results to 31 December 2019 will be announced on 3 March 2020.
Improved Organic Revenue Growth Momentum: + 3.6% in July-October¹
· Group revenue YTD: £2,487m, up 4.7% at constant rates and 7.4% at actual rates
· Organic revenue¹ growth momentum improvement driven by Products and Resources:
YTD H1 July-Oct
– Group +3.3% +3.0% +3.6%
– Products +2.3% +2.1% +2.6%
– Trade +4.4% +5.1% +3.5%
– Resources +5.2% +3.5% +7.6%
· 1.4% revenue¹ growth from Acquisitions in attractive growth and margin sectors
· Continuing operational discipline on margin and cash management
· 2019 will mark another year of consistent progress on Revenue, Margin and Cash
André Lacroix: Chief Executive Officer statement
“Our purpose to bring quality, safety and sustainability to life is truly meaningful to our clients given the increased complexity in their operations. We are benefiting from higher demand from our customers for our industry leading Total Quality Assurance (TQA) solutions in our Products, Trade and Resources divisions.
Intertek is going from strength to strength. In the first 10 months of the year, the Group has delivered revenue of £2,487m, up 7.4% year on year at actual rates and 4.7% at constant rates, driven by broad-based organic growth of 3.3% at constant rates, by the contribution of the acquisitions we made recently in attractive growth and margin sectors and by a 270bps benefit due to foreign exchange translation.
2019 will mark another year of continuous progress in revenue, margin and cash as we expect to deliver good organic revenue growth with solid margin progression at constant rates and strong cash conversion. Our good organic revenue growth at constant currency at the Group level in 2019 will be driven by good organic growth in our Products division, good organic growth in our Trade division and by robust organic growth in our Resources division.
The $250 billion global Quality Assurance industry has attractive structural growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products.
We are uniquely positioned to seize these exciting growth opportunities with our innovative TQA approach. We provide leading Assurance, Testing, Inspection and Certification (ATIC) solutions that are mission-critical to our customers across multiple industries through our global network of subject-matter experts. Two examples of recent innovative ATIC solutions, helping our clients to thrive in a complex world and providing growth opportunities, are Intertek Total Sustainability Assurance and Intertek Cyber Assured. www.intertek.com
We operate a high quality and highly cash generative earnings model delivering strong returns. Our ‘5×5’ differentiated strategy for growth will continue to move the centre of gravity of our portfolio towards the attractive growth and margin opportunities in the industry based on a disciplined approach to revenue, margin, portfolio and cash performance management, and an accretive disciplined capital allocation policy that delivers sustainable shareholder value creation.”