Intertek Group PLC
11 December 2007
11 December 2007, 7:01am (UK)
Pre-close Trading Statement
Intertek Group plc ('Intertek'), the leading international provider of quality
and safety services to a wide range of industries, today issues a trading update
ahead of its full year results ending 31 December 2007, which will be announced
on 10 March 2008.
Intertek's strong first half performance has continued into the second half.
Organic revenue and operating profit growth, at constant exchange rates,
continues to be strong, supplemented by a significant contribution from the
acquisitions made during the year.
The Consumer Goods division has performed well and is benefiting particularly
from the high demand for toy testing in Asia, following the recent recall
notices. Intertek has taken a leading role in supporting major brands and
industry players to provide solutions for these issues.
In the Oil, Chemical & Agri division, all five Analytical Services business
lines are performing well and this continues to drive the division's profit
growth. Intertek continues to be successful in winning new business from
industry both through additional large multi-year contracts and additional
testing services. Oil cargo inspection continues to perform well driven by the
continuing high demand for crude oil and refined products.
The Commercial & Electrical division continues to generate the majority of its
organic revenue growth from Asia where Intertek is the market leader in
providing quality and safety services for home appliances exported to the
European and US markets. Extra capacity has been added in North China to support
continuing growth in the region in the year ahead. North America is also
performing well, benefiting from the increasing acceptance of the ETL mark.
The Government Services division is expected to have slightly reduced revenue in
2007 due to the termination of the Nigerian pre-shipment inspection contract in
March 2006. The Ecuador pre-shipment inspection contract is expected to
terminate during the first quarter of 2008.
The key drivers of demand for the Group's services remain strong. Global trade
growth continues to run at considerably higher levels than GDP growth. In
addition, regulation, quality and safety requirements continue to increase
around the world, and the rising number of brands and variety of products being
manufactured, all underpin Intertek's growth. Product variety, as opposed to
manufacturing or shipment volumes, is a key driver of growth for Intertek.
Today Intertek announced as of 1 January 2008, Mark Loughead will become Chief
Operating Officer of the Group and an Executive Director on the Board. This
appointment will further strengthen Intertek's ability to capture growth and
utilise its resources more effectively.
To better capture rapid growth opportunities in certain sectors and to increase
the focus on customers in their specific industries, from 1 January 2008
Intertek will be organised into seven divisions: Consumer Goods; Commercial &
Electrical; Analytical Services; Minerals; Oil, Chemical & Agri Cargo;
Industrial Services and; Government Services.
Despite the continued weakness of the US dollar, Intertek expects to achieve a
strong full year performance in line with management's expectations.
-ends-
Contacts
Aston Swift
Telephone: +44 (0) 20 7396 3400
aston.swift@intertek.com
Richard Mountain / Susanne Yule, Financial Dynamics
Telephone: +44 (0) 20 7831 3113
richard.mountain@fd.com / susanne.yule@fd.com
Notes to Editors
ABOUT INTERTEK
Intertek (LSE: ITRK) is the leading international provider of quality and safety
services to a wide range of global and local industries. Partnership with
Intertek brings increased value to customers' products and processes, ultimately
supporting their success in the global market place. Intertek has the
experience, expertise, resources and global reach to support its customers
through its extensive network of laboratories and offices, with over 20,000
people in more than 100 countries around the world. www.intertek.com
This information is provided by RNS
The company news service from the London Stock Exchange
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