Trading Statement

Intertek Group PLC 14 December 2005 14 December 2005, 7am (UK) Intertek Group plc ('Intertek') 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 2005. The preliminary results will be announced on Monday 6 March 2006 and the close period commences on 6 January 2006. Labtest, the consumer goods division, continues to perform well despite the competitive environment in inspection and the second half impact of the Chinese textile export quotas to Europe and the US reaching their limits in the summer of 2005. The operating margin for the second half is expected to be stable and similar to the first half of 2005. Labtest has strengthened its position in consultancy and testing relating to the new European directive on the restriction of hazardous substances (RoHS). This and other services from Labtest will drive strong performance next year and beyond. ETL SEMKO, the commercial and electrical consumer products division, continues to perform very strongly in all regions with an expected acceleration of organic growth compared to last year. Asia, and especially China, is experiencing the fastest growth helped by the increasing acceptance of the ETL label by North American retailers. Testing and certification in the Americas and Europe across all activities are showing good growth, with market share gains in some sectors. The operating margin is expected to be higher than last year despite the incremental cost of investments in the automotive and building products testing businesses in China and a new testing laboratory in India. Caleb Brett, the oil, chemical and agricultural division, is achieving excellent growth with an expected acceleration of organic growth compared to last year. The increasing provision of services to the upstream exploration industry is leading to higher growth potential and margins in Caleb Brett. The revenue growth of Analytical Services is particularly strong as a result of a steady increase in new business. This trend is expected to continue into 2006 following the recent acquisitions of Westport, Automotive Research and Lintec and the new outsourcing agreement with Kodak. The trading conditions experienced by Caleb Brett in the second half of 2005 were significantly impacted by Hurricanes Katrina and Rita and their aftermath. These effects include lost revenue due to diminished oil and gas production in the Gulf of Mexico and it is currently expected that reported operating profits will be reduced by approximately £2 million to £3 million as a result of the hurricanes. These estimates do not take into account any insurance recoveries, which while probable, are likely to take some time to process. FTS, the trade services division, is expected to report revenue ahead of last year despite a fall in monthly revenues from September onwards due to the ending of the Venezuela contract. The new Standards contract with Kenya will partly compensate for the ending of the Venezuela contract and all costs of demobilising were included in the results for the half year 2005. Group Overall, revenues and underlying operating profit for 2005 are expected to come close to the top end of expectations. The cost of litigation related to old legal claims has been unusually high in the second half of 2005. One claim in Caleb Brett, dating back to 1996, was contested in court and unexpectedly resulted in an adverse judgment, which has been appealed. Taking into account the impact of the hurricanes and the unexpected cost of the claim, and excluding likely insurance recoveries, the reported operating profit is expected to come in towards the lower end of expectations. The three year decline of the US dollar against sterling has recently abated and this should have a very minor but favourable effect on the reported results as approximately 80% of the Group's earnings are in US dollar or currencies related to the US dollar. Wolfhart Hauser, Chief Executive, said 'We are pleased with the underlying performance this year across the Group. By continuing to pursue the Group's strategy of creating added value for our customers through technical services that support them in their global trade, Intertek aims to generate high organic growth rates. Acquisitions and greenfield investments will continue to be made to support this strategy and the recent series of successful acquisitions and investments demonstrates Intertek's ability to carry this out.' For further information, please contact Aston Swift, Treasurer and Investor Relations Telephone: +44 (0) 20 7396 3400 aston.swift@intertek.com Tim Lynch, Tulchan Communications Telephone: +44 (0) 20 7353 4200 intertekteam@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 certifies the management systems of customers. Intertek has over 300 laboratories and over 14,500 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
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