Pre Close Trading Statement

Intertek Group PLC 02 December 2003 2 December 2003 Intertek Group plc ('Intertek') Pre Close Trading Statement Intertek, the global testing, inspection and certification company, today reports on trading ahead of entering the close period for the financial year to 31 December 2003. The preliminary results will be announced on Monday 8 March 2004. Based on current results at constant exchange rates, turnover in the second half is showing similar growth to the first half of 2003. However operating profit is showing lower growth. The recent further weakness in the US dollar is reducing the results at actual exchange rates such that management expects operating profit for the full year to be marginally below the figure for the previous year. The earnings per share (before exceptional items and amortisation) are expected to remain within the range of analysts' forecasts. Labtest's turnover and profit continue to benefit strongly from the increased volumes of textile testing in Hong Kong, China and the rest of Asia, as well as increasing regulatory standards on toys and other products sourced from Asia. Caleb Brett oil cargo inspection continues to operate in a competitive environment but performance has improved from the first half of the year. The outsourcing side of the business is growing well, with new contracts being won. In ETL SEMKO, safety testing and certification of electronic and electrical products is growing well in Asia. Performance testing in America is producing good results but the telecoms equipment testing in Europe and America has still not yet recovered from the downturn that started in mid 2001. In order to improve the co-ordination and cross selling on the government standards programmes in Saudi Arabia and Kuwait and to reduce overheads, the ETL SEMKO and FTS divisions are being merged under the leadership of Rob Dilworth. The results of the two divisions will continue to be reported separately. In FTS, the Nigerian Government has suspended all inspection work performed for it by Intertek with effect from late November. As previously reported, the Nigerian contract was expected to continue at least until the end of 2003 although the status beyond this date was uncertain. Nigeria accounts for approximately 2.5% of Intertek's turnover, so there will be a small reduction in the Group's operating profits in 2003 as a result of the suspension of the contract. The division is being restructured to compensate for the reduced workload. The recent contracts with Venezuela, Kuwait and Malawi are expected to make up for the lost turnover, but they are still incurring start up costs and are less profitable than Nigeria. The restructuring of the ETL SEMKO and FTS divisions is expected to result in exceptional charges of approximately £3.3 million on which there will be a two year payback. Exceptional items In the second half, approximately £1.1 million of income arising from FTS government contracts relating to previous periods will be recognised as exceptional income. Exceptional income of approximately £1.4 million will also be recognised in respect of the liabilities recovered in relation to the Environmental Testing division, closed in 1998. As stated above, the restructuring of ETL SEMKO and FTS will result in an exceptional cost of £3.3 million. For further information, please contact Aston Swift, Treasurer and Investor Relations Telephone: +44 (0) 20 7396 3400 aston.swift@intertek.com Katie Macdonald-Smith, Tulchan Communications Telephone: +44 (0) 20 7353 4200 kmacdonald-smith@tulchangroup.com Corporate website: www.intertek.com High resolution images of Intertek Group plc businesses are available to download, free of charge from www.vismedia.co.uk. About Intertek Intertek is a leading international testing, inspection and certification organisation which assesses customers' products and commodities against a wide range of safety, regulatory, quality and performance standards and in some cases, certifies the management systems of customers. Intertek has over 270 laboratories with more than 11,000 people around the world and is increasingly undertaking outsourced testing work for its customers. This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings