Intertek share price: Support services group posts trading statement

on Nov 22, 2016
Updated: Oct 21, 2019
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Intertek (LON:ITRK) has updated investors on its recent performance this morning.

**Highlights from Intertek’s statement:**
André Lacroix: Chief Executive Officer Statement: “In the first ten months, the Group has delivered 10% revenue growth at constant rates and is on track to deliver robust revenue growth, with strong operational discipline, stable margin and good cash generation in 2016.

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The Products and Trade related divisions, which represent over 90% of the Group’s earnings, delivered an excellent performance with good organic growth of 4% at constant rates. However, trading conditions remain, as expected, challenging in the Resource related division. The acquisitions made since January 2015 are performing well and contributed £200m of additional revenues.

The $250bn global quality assurance industry has attractive structural growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products.

We operate a high quality and highly cash generative earnings model and we are uniquely positioned to seize these exciting growth opportunities with our Total Quality value proposition that provides a superior service, offering global Assurance, Testing, Inspection and Certification solutions to our customers across multiple industries delivered in our global network of over 1,000 state of the art facilities in over 100 countries.
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 revenue, margin, portfolio and cash performance management, with a disciplined capital allocation to deliver attractive returns for our shareholders.”
Outlook
The Group remains on track to deliver its 2016 target of robust revenue growth at constant currency with stable margin and strong cash generation. We will continue to benefit from the acquisitions made since January 2015 and we expect organic growth to be stable at constant currency.

We expect our Product related businesses to deliver robust organic growth, our Trade related businesses to report solid organic growth performance, while the market conditions will remain challenging in our Resource related businesses.

Looking further ahead, the global Quality Assurance market will benefit from exciting growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products.

We provide our customers with a Total Quality Assurance differentiated value proposition based on the depth and breadth of our technical expertise, our global network of over 1,000 state of the art facilities in over 100 countries, our industry leading Assurance, Testing, Inspection and Certification solutions, and our customer centric culture.

We continue to be uniquely positioned to benefit from the GDP+ organic growth prospects in the Quality Assurance Industry in the medium to long term, leveraging our high quality and highly cash generative earnings model.
As of 07:27 GMT, Tuesday, 22 November, Intertek Group plc share price is 3,240.29p.

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