Intertek Group PLC

Intertek Group PLC (LSE: ITRK), an FTSE 100 index listed global leader in Total Quality Assurance services across various industries, operates through a network spanning over 1,000 laboratories and offices in more than 100 countries. The company offers Assurance, Testing, Inspection, and Certification solutions to support supply chains. Intertek is committed to providing round-the-clock, indispensable quality assurance solutions, ensuring seamless operations and robust supply chains for its clients in every facet of its business.

Trading Statement (Released on 23 November 2023)

• Revenue Update: The company reported year-to-date (YTD) revenue of GBP 2.77 billion, reflecting a growth of 7.3% (CCY), driven by a widespread increase in like-for-like (LFL) revenue. From July to October, there was a 5.2% LFL revenue rise at CCY. Specifically, Corporate Assurance, Health and Safety, Industry, and Infrastructure, along with World of Energy, collectively experienced LFL growth of 6.9%, whereas Consumer Products saw a 1% LFL increase. Improvements in margins were propelled by pricing strategies, efficient operating leverage, and stringent control over costs. The disciplined performance management approach has resulted in robust cash flow and a healthy balance sheet.
• M&A Update: Recent acquisitions in high-margin sectors have shown strong performance, contributing GBP 26 million to the year's revenue. The company’s recent acquisitions include SAI Global Assurance, JLA Brasil Laboratório de Análises de Alimentos S.A. and Clean Energy Associates LLC and Controle Analtico. The company also acquired US-based PlayerLync in August.
• Outlook Update: The 2023 outlook remains positive, confirming an anticipated mid-single digit LFL revenue growth at CCY, margin enhancement, and the generation of substantial free cash flow. For 2023, Intertek expects capital expenditure in the range of GBP 115 to 125 million, net finance costs in the range of GBP 40 to 42 million and net debt in the range of GBP 630 to 680 million. The average exchange rate of the British Pound utilized for the company’s FY 2022 results would lead to a decrease of 300 basis points in its FY revenue and a decline of 500 basis points in FY Earnings.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Intertek Group PLC (LSE: ITRK) was trading at the closing market price of GBX 3,960.00 (as on 23 November 2023)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 23 November 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.