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Intertek Group PLC on Wednesday reported strong revenue growth so far in 2022, and the London-based quality assurance service provider said this should improve further once its business in China gets back to normal.
Intertek revenue was £951.3 million in the four-month period covering January 1 to April 30, up 11% from £855.4 million a year before. Broad-based like-for-like revenue grew 6.8% to £911.5 million from £853.8 million. Like-for-like revenue growth outside China was 6.8%.
‘China accounts for 20% of Intertek revenues and since March, the Covid-19 lockdown restrictions have caused a temporary disruption to our business on a regional basis. We are planning for our Chinese business to be back to normal by July 1, and that trading will be in line with the good like-for-like revenue growth we saw in China in the January-February period,’ Intertek explained.
Its most recent acquisitions SAI Global Assurance and JLA Brasil Laboratorio de Analises de Alimentos SA delivered £39.4 million of additional revenue at constant rates.
Intertek said it is seeing increased demand for its total quality assurance solutions despite the impact of Covid-19 lockdowns in China.
‘The supply chain disruption being experienced by corporations across multiple industries in the last two years has made the need for comprehensive risk-based quality, safety and sustainability assurance more critical than ever. Companies are investing in quality assurance to build greater resilience and safety, whilst innovating to deliver new high-quality products and services as consumer expectations rapidly evolve,’ Intertek said.
The firm sees itself ‘well-positioned to deliver on our guidance for 2022 with robust like-for-like constant currency revenue growth for both the group as a whole and for each of our divisions, further margin progression at constant currency and strong free cash flow.’
The company will release its half-year results to June 30 on July 29.
Intertek shares were 0.4% higher at 4,630.00 pence each in London on Wednesday morning.
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