Intertek Group says it is on track to deliver robust earnings growth in 2016 with recent acquisitions contributing £200m of additional revenues.
- Strong revenue growth: +10% at constant rates in the first 10 months, +18% at actual rates
- High revenue growth in the high margin Products division: +22% at constant rates, +33% at actual rates
- Recent acquisitions contributed £200m of additional revenues
- Stable organic revenue growth at constant rates: Products +5.5%, Trade +1%, Resources -13%
- On track to deliver 2016 target of robust revenue growth at constant rates with stable margin Chief executive Andre Lacroix said: "In the first ten months, the Group has delivered 10% revenue growth at constant rates and is on track to deliver robust revenue growth, with strong operational discipline, stable margin and good cash generation in 2016.
"The Products and Trade related divisions, which represent over 90% of the Group's earnings, delivered an excellent performance with good organic growth of 4% at constant rates. However, trading conditions remain, as expected, challenging in the Resource related division. The acquisitions made since January 2015 are performing well and contributed £200m of additional revenues.
"The $250bn 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 operate a high quality and highly cash generative earnings model and we are uniquely positioned to seize these exciting growth opportunities with our Total Quality value proposition that provides a superior service, offering global Assurance, Testing, Inspection and Certification solutions to our customers across multiple industries delivered in our global network of over 1,000 state of the art facilities in over 100 countries.
"Our differentiated Total Quality Assurance growth strategy will 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, with a disciplined capital allocation to deliver attractive returns for our shareholders."