Interim Management Statement

Intertek Group PLC 09 May 2008 9 May 2008, 7:00am (UK) Intertek Group plc Interim Management Statement Intertek Group plc ('Intertek'), a leading international provider of quality and safety services to a wide range of industries, today releases its first Interim Management Statement. The Annual General Meeting of Intertek will be held today at 11.00am at The Westbury Hotel, Conduit Street, London, W1S 2YF. The half year results to 30 June 2008, will be announced on Monday 4 August 2008. Overview Intertek has made a strong start to the financial year with trading in line with management expectations. Consumer Goods continues to perform very well with strong revenue growth. Toys and hardlines testing in South China and Hong Kong are driving this growth due to increased demand for quality and safety services from retailers and manufacturers who have heightened concerns about product recalls and the consequential direct costs and reputation damage to their businesses. Textiles testing is continuing to grow well driven by increasing product variety and quality requirements. Inspection, which accounts for approximately 10% of the division, is growing less strongly, in line with slowing global trade flows. Despite the continuing mix effect on the margin due to higher growth in lower margin businesses, the overall margin is stable and in line with our expectations. Commercial & Electrical is performing very well with organic growth and margin growth being supplemented by acquisitions. Market share gains in certification are being made in both the US and European markets with some significant new orders. To date, other than continued slow growth in automotive components testing in the US, there is no indication that the weak US economy is having any impact on testing or certification demand. Oil, Chemical & Agri is performing well overall with a stable margin. Revenue and profit growth in the Oil, Chemical & Agri sector of this division has grown strongly, mainly due to high demand for petroleum cargo inspection in the Americas and Asia. Likewise underlying revenue growth in the Minerals sector has been strong, but the operating profit has not grown as fast due to investment and start up costs in China and on new major contracts in Australia. In Analytical Services, most service lines have reported strong performance, but not enough overall to compensate for delays in a few large orders in pharmaceutical and downstream activities. It is expected that these underperforming laboratories will be on track by year end. Government Services, as expected following the termination of the Ecuador contract at the end of February 2008, is showing flat revenue growth but maintaining profit margins. Wolfhart Hauser, Chief Executive Officer of Intertek, said: 'We have made a strong start to the financial year with trading in line with our expectations. We have continued our strategy of making bolt-on acquisitions and to date have completed eight, for an initial cash consideration of £35m plus up to £12m deferred. The divisional reorganisation, from four to seven divisions to better capture the rapid growth opportunities in our key industry sectors, is progressing well. 'To date, market conditions remain supportive in our key industry sectors. We will continue to capture additional market opportunities based on our focused strategy of offering added-value services and supporting customers in their global trade. We expect that 2008 will be another good year for Intertek.' -ends- Contacts Aston Swift / Sarah Ogilvie Telephone: +44 (0) 20 7396 3400 aston.swift@intertek.com / sarah.ogilvie@intertek.com Richard Mountain / Sophie Kernon, Financial Dynamics Telephone: +44 (0) 20 7831 3113 richard.mountain@fd.com / sophie.kernon@fd.com Notes to Editors ABOUT INTERTEK Intertek (LSE: ITRK) is a leading provider of quality and safety solutions serving a wide range of industries around the world. From auditing and inspection, to testing, quality assurance and certification, Intertek people are dedicated to adding value to customers' products and processes, supporting their success in the global marketplace. Intertek has the expertise, resources and global reach to support its customers through its network of more than 1,000 laboratories and offices and over 21,000 people in 110 countries around the world. www.intertek.com This Interim Management Statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Interim Management Statement are based on the knowledge and information available to the Company's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange IMSBRGDUUXGGGII
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