Testing firm on track to hit financial targets

Brexit not expected to impact on Intertek growth

International testing and inspection group Intertek delivered strong revenue and profits growth in the first half of 2016.

The group provides quality assurance services in more than 100 countries and has operations in Dundee, Aberdeen, Stirling and Shetland. It also took the opportunity to tell investors that it did not anticipate any impact on its future growth opportunities from the UK’s decision to leave the European Union.

The trading figures show group-wide revenues grew by 13.6% to £1.2 billion in the first six months of the year.

Operating profits were 13.1% ahead of 2015 at £185.9 million, while pre-tax profits were 15.1% up on the year at £172.5m.

The group said it ended the period in a “strong financial position” and declared an interim dividend of 19.4p per share, a 14.1% increase on the 15p payout at the same juncture in 2015.

Chief executive Andre Lacroix said the business was on track to hit its financial targets for the full year.

“Our products division delivered an excellent performance with an operating profit growth of 22%, benefiting from a robust organic growth performance and from recent acquisitions.

“Our trade-related businesses delivered a solid performance while trading conditions remain challenging, as expected, in our resources sector.”

Mr Lacroix said the firm was operating in a $250bn market which offered strong opportunities for growth.

He added: “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 performance management and capital allocation to deliver sustainable growth and returns for our shareholders.”

Shares in Intertek closed the trading session down 2.21% or 80p at 3,545p. business@thecourier.co.uk