Intertek hit by currencies and mixed trading in first half.
Product testing, inspection and certification group Intertek said financial results for the first half were weaker than last year due to currency movements and continued headwinds in the minerals and energy-related businesses.
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Product testing, inspection and certification group Intertek said financial results for the first half were weaker than last year due to currency movements and continued headwinds in the minerals and energy-related businesses.
Nevertheless, the company said that organic revenue growth should pick up in the second half “as one-off effects annualise and as we continue to see good growth in other areas of our portfolio”.
Adjusted pre-tax profit slipped by 3% to £140.9m in the six months to 30 June at actual exchange rates, as sterling appreciated against all other major currencies in regions in which Intertek operates, such as the US, Eurozone and China.
However, if currency rates would have been stable over the year, first-half profits would have improved by 6.7%.
Revenues declined by 5.6% to £1.024m, but were up 2.9% at constant currency.
On an organic basis, revenues were down 0.5% as good growth in the consumer goods, commercial and electrical businesses was offset by weakness in commodities, industry and assurance divisions.
Organic comparisons also reflected Intertek’s decision to exit “certain low-value contracts”, it said.
Despite the declines, the company approved a 6.7% increase in the interim dividend to 16p per share.
Chief executive Wolfhart Hauser said that Intertek is “well placed to deliver high single-digit organic revenue growth over the coming years”.