25th Jun 2007 07:02
Intertek Group PLC25 June 2007 25 June 2007, 7:00am (UK) Pre-close Trading Statement Intertek Group plc ("Intertek"), the leading international provider of qualityand safety services to a wide range of industries, today reports on tradingahead of entering the close period for the six months ending 30th June 2007. Theinterim results will be announced on Monday 3rd September 2007. The Group is expected to perform well in the first half. Growth in global tradeand increased demand for quality and safety services internationally continue tostimulate good growth in Intertek's industries and service lines. Through astrategy of offering added-value services to customers' products and processesand supporting them in their global trade, Intertek is continuing to gain fromthese positive industry trends. Consumer Goods continues to perform well in all major lines, with the increasedtextiles, toys and hardlines exports from China and Asia to the West driving thegrowth. Last year the division benefited from an increase in testing from thenew European Union legislation on Restriction of Hazardous Substances (RoHS).Subsequent limited enforcement of the legislation has reduced RoHS testing suchthat the divisional margin in the first half will be slightly lower compared tolast year. The Commercial & Electrical division is performing well in all three globalregions and has successfully increased market share and recognition of the ETLmark in the US over the period. There has been a turnaround in the automotivecomponents testing business which is no longer declining and is now showingpositive growth, although is still below the divisional average. The division isexpected to benefit from increased testing and certification for energyefficiency, particularly on lighting and electrical products manufactured inAsia. The recently acquired business including the ASTA and BEAB certificationmarks further strengthens Intertek's existing mark portfolio and ability toprovide manufacturers with seamless global market access.The strong performance in the Oil, Chemical and Agri division has been driven byhigh demand and trade in petroleum products, alongside the growth in biofuelsand ultra low sulphur diesel and the continued success of the outsourcingstrategy in the analytical services sector. Analytical services now account forover 50% of the division by revenue. Acquisitions in the upstream oil and gasmarket, minerals and pharmaceutical sectors this year are expanding the servicerange to existing customers and bringing new business into the network. Goodmarket conditions and increased testing volumes in higher margin analyticalservices will result in another period of positive margin up-lift in the firsthalf. The Government Services division is growing well on an underlying basis. Asanticipated it will report an overall decline in revenue and profit due to theinclusion of three months revenue and profit from the discontinued Nigeriacontract in 2006. There are good prospects for continuing the diversification ofthe revenue stream away from pre-shipment inspection. As previously announced, the level of external and internal investment hasincreased and over £50 million has been spent on six acquisitions so far thisyear. All of these are bringing additional services into the group or expansioninto new regions. The Group also continues to develop new services internallyand, by the end of the first half of 2007, approximately £1 million will havebeen spent. Internal and external investments will ensure new growthopportunities are captured.With approximately 80% of the Group's earnings in US dollar and US dollarrelated currencies, and the US dollar being currently 11% weaker againststerling than this time last year, on translation the results will be negativelyimpacted in the first half. The Board is pleased with the continuing good progress the group is making incapturing the growth in the industry and expect the results for the year to bein line with expectations. -ends- ContactsAston SwiftTelephone: +44 (0) 20 7396 [email protected] Richard Mountain / Susanne Yule, Financial DynamicsTelephone: +44 (0) 20 7831 [email protected] / [email protected] Notes to Editors ABOUT INTERTEKIntertek is the leading international provider of quality and safety services toa wide range of global and local industries. Partnership with Intertek bringsincreased value to customers' products and processes, ultimately supportingtheir success in the global market place. Intertek has the experience,expertise, resources and global reach to support its customers through itsnetwork of 930 laboratories and offices and over 18,000 people in 109 countriesaround the world. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Intertek Group