Intertek interims pass investors’ test

Shares in FTSE 100 outfit Intertek (LON:ITRK) climbed by 3.99% to 5,936p (as of 11:45 BST) on the back of the firm’s half-year results. The company said that revenues for the period were up by 7% with growth coming both organically and through acquisitions. Pre-tax profits for the six months rose by 4.4%.

Intertek CEO André Lacroix commented: “In the first six months of the year, the Group has delivered revenue of £1,442.6m, up 7.0% year-on-year at actual rates and 4.9% at constant rates, driven by broad-based organic growth of 3.0% at constant rates, by the contribution of the acquisitions we made recently in attractive growth and margin sectors and by a 210bps benefit due to FX translation.

“For the fifth consecutive year, the Group delivered margin progression in H1 with an increase year-on-year of 30bps at constant currency, that was broad based: Products +20bps, Trade +10bps, Resources +70bps.

“Our strong operating cash flow performance with double-digit growth year-on-year reflects our day-to-day operational discipline on cash.

“In-line with our dividend policy that targets a payout ratio of circa 50%, and underpinned by our high margin and highly cash generative earnings model, we have announced a half year dividend of 34.2p per share, an increase of 7.2%.

“We are on track to deliver our 2019 targets of good organic revenue growth at constant rates, with moderate margin expansion and strong cash conversion. We expect good organic revenue growth at constant currency rates in each of our three divisions: Products, Trade and Resources“.