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Intertek PLC on Friday upped dividends and backed expectations of growth in the medium term, although first-half revenue was broadly flat on-year. Intertek shares were down 7.3% at 4,582.00p on Friday morning in London, making it the largest FTSE100 decliner. The wider index was down 0.7%. The London-based provider of assurance, testing, inspection and certification services said pretax profit was up 9.8% in the six months that ended June 30, rising to £226.5 million from £206.2 million the year prior. However, adjusted income tax expenses also rose 8.4% to £65.8 million from £60.7 million. Meanwhile, adjusted free cash flow decreased to £56.0 million from £90.6 million. Operating profit increased 4.2% to £276.3 million from £265.1 million, lifting the adjusted operating margin by 60 basis points to 16.5% from 15.9%. An increase of 0.2% kept revenue broadly stable on-year at £1.67 billion, although Intertek said the increase was 4.5% at constant exchange rates. On a like-for-like basis, revenue rose 0.1% and 4.5% at constant currency. By division, revenue was higher in Consumer Products and Corporate Assurance, which rose by 2.9% and 3.8% respectively. However, three of Intertek’s five businesses saw revenue decline: Health & Safety by 1.9%, Industry & Infrastructure by 0.8% and World of Energy by 3.6%. Intertek declared an interim dividend per share of 57.3 pence, up from 53.9p for the first half of 2024. Diluted earnings per share came to 98.0 pence, up 12% from 87.2p. For the full year, the firm expects ‘strong’ results, including mid-to-single digit revenue growth on a LfL constant currency basis. Intertek said it also anticipates margin progression, due in part to growth in profit-driving divisions such as Consumer Products and Corporate Assurance. For the medium term, the company is on track for mid-to-single digit LFL revenue growth, a profit margin of or above 18.5% and strong cash flow, it said. Net financial debt expanded to £800.6 million at June 30, from £708.2 million on-year. ‘Our clients are increasing their focus on risk-based quality assurance to operate with higher standards on quality, safety and sustainability in each part of their value chain, triggering higher demand for our ATIC solutions,’ commented Chief Executive Andre Lacroix. ‘We believe the outcome of tariff discussion will create additional growth opportunities for Intertek with new global trade routes to assure, more products to test and certify, and more factories to audit and inspect. Following a strong [first half], we enter [the second half] with confidence and now expect to deliver a strong performance in 2025.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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