Intertek sees revenue and underlying profit grow in latest yearly results
Assurance and certification giant Intertek Group plc recently announced its latest yearly results, which saw significant rises in underlying revenue and profit.
Underlying revenue grew by 6.5%, whilst largely organic and underlying profit grew surged by 15.4%.
The group also grew its margins by 130bps to 17.0% and strong cash generation kept debts down to only 1.1x EBITDA, despite spending £490m on acquisitions during the financial year.
CEO André Lacroix said the group was well positioned for 2022, expecting further robust underlying revenue growth and margin gains, backed up by strong free cash flow.
The results were broadly in line with market expectations and the shares rose almost 1% at the start of trading.
Commenting on the results, Steve Clayton, Fund Manager of the HL Select UK Growth Shares fund, which has a position in Intertek, said: “Intertek provides Assurance, Testing, Inspection and Certification services that help global corporations manage their complex supply chains. No surprise then to see the group growing strongly at a time when keeping track of every leg in the supply chain has never been more important.
“The business generates high returns, and these jumped a further 350bps in the year, to almost 25% before the impact of acquisitions in the year. We see the group maintaining and building this profitability in the years ahead.
“Corporations around the world are expected to provide greater disclosure on how their supply chain performs in terms of environmental impact and the social conditions under which suppliers run their facilities. Intertek is well placed to provide the assurances necessary, inspecting and auditing the integrity of suppliers.
“This places Intertek at the heart of the transition to net-zero, creating a positive tailwind for the business in years to come.”