Intertek in the red as FX and divisional softness offset revenue gains
Quality assurance firm Intertek Group Plc said on Tuesday that trading remained robust through the three months ended 31 October, but warned that tough comparators and currency headwinds had weighed on its overall performance.
Intertek said year‑to‑date revenue rose 4.6% to £2.85bn, with like‑for‑like growth of 4.3% and a 0.3% contribution from mergers and acquisition. In the four months to October, LFL revenue grew 4.1%, led by gains of 5.4% in its consumer products division, 6.6% in its corporate assurance unit, and 6.0% in its industry and infrastructure arm.
However, shares headed south in early trading as investors reacted to softer performances from its health and safety and World of Energy divisions, where growth stalled against tough comparators. Currency headwinds also weighed on outlook, with management warning that, if current exchange rates persist, full‑year revenue and earnings could fall by 350 and 500 basis points, respectively.
Intertek also noted that its £350m share buyback programme was progressing well, with £328m already repurchased, equivalent to 7m shares.
Looking ahead, the FTSE 100-listed company said it remained on track to meet full‑year earnings expectations, with mid‑single digit like-for-like revenue growth at constant currency, strong margin progression and excellent cash generation.
Intertek added that it was well positioned for 2026, targeting mid‑single digit growth, margin progression towards its 18.5%+ goal, and continued strong cash generation.
As of 0820 BST, Intertek shares were down 3.41% at 4,704p.
Reporting by Iain Gilbert at Sharecast.com
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