Intertek Announces Its Full Year Results for The Year Ended 31 December 2013

Intertek Group plc (“Intertek”), a leading international provider of quality and safety services, announces its full year results for the year ended 31 December 2013.

Highlights
- Revenue growth of 6.3% to £2,184m; constant currency organic revenue growth of 4.3%
- Profit2 growth of 2.2% to £343m; profit margin 15.7%, down 60bps
- Diluted EPS increase of 5.6%
- Seven acquisitions for £122m; £145m of organic capital investment
- Cash generated from operations up 14% to £394m
- Recommended full year dividend per share increase of 12%

Wolfhart Hauser, Chief Executive Officer, commented, “The quality and safety services market in 2013 was characterised by variable conditions. For Intertek, strong growth in our businesses in the major emerging countries was partially offset by a cyclical downturn in some industries and geographies. Despite these conditions, we reported growth in revenue, operating profit and earnings per share, reflecting the strength of our portfolio.

Consumer Goods reported high single digit organic revenue growth with ongoing structural growth in the global textiles and toys markets including new requirements under the EU Toy Safety Directive.

The Commercial & Electrical and Industry & Assurance divisions reported mid-single digit organic revenue growth for the full year. After a strong start to the year, growth in the Industry & Assurance division moderated during the second half reflecting the weakness of discretionary spending in the USA and from exiting certain lower value contracts.

Both the Commodities and Chemicals & Pharmaceuticals divisions were further impacted in the second half due to the continuing challenges of the minerals exploration market and persistent weak conditions in Europe.

The Group margin for the full year was below the margin for the same period last year with the effect of these weaker markets mitigated by a strong focus on restructuring and cost control.

Variable market conditions in the second half of 2013 have continued into the start of this year. As markets stabilise and the benefit of the Group’s restructuring and cost reductions come through, we expect 2014 to be a year of progressively improving growth and profitability.

The structural drivers in the industry remain in place as the global demand for quality and safety services increases. We are confident of achieving or exceeding this industry growth as we continue to invest and focus our resources on our key growth markets.”