'Intertek will continue to grow well in 2009' – Mr Hauser

12 Mar '09

5 min read

Intertek Group plc (“Intertek”), a leading international provider of quality and safety services, announces its full year results for the year ended 31 December 2008.

Highlights
• Organic revenue and adjusted operating profit¹ growth of 12.3% and 14.8% at constant currency
• Adjusted operating profit margin increased by 70 bps to 16.4%
• Operating cash flow of £194.0m, up 30.1%
• Strategic review of Government Services division successfully concluded with integration into Oil, Chemical & Agri division. Non-recurring costs of £6.7m primarily related to this restructuring
• Fourteen businesses acquired in 2008, for net consideration of £79.5m

Wolfhart Hauser, Chief Executive Officer, commented: “These excellent results, in challenging times, have been achieved through the combination of strong organic performance, the contribution from acquisitions and favourable exchange rate movements. Our strategy, as well as our geographic and industry diversification, will help to mitigate any adverse economic impact on our business and provide us with a range of opportunities. As a result, we are confident that Intertek will continue to grow well in 2009.”

Introduction by the Chairman - Vanni Treves
Revenue over £1 billion: I am pleased to report that Intertek delivered excellent results in 2008 and ended the year with a revenue figure of £1,003.5m, up 29.4% over last year. Excluding acquisitions, revenue growth was 22.5%. Operating profit was £147.9m, up 27.4% over last year. Adjusted operating profit increased to £164.7m, up 35.4%. Our adjusted operating margin increased by 70 basis points to 16.4%. Excluding acquisitions, adjusted operating profit grew by 28.4%.

Acquisitions
We continued our successful track record of making infill acquisitions. In 2008 we acquired 14 new businesses for total consideration of £79.5m (2007: £100.0m). Details of the acquisitions are given in the Operating Review by division and in note 26 to the Annual Report. To date in 2009, we have completed two further acquisitions for initial consideration of £21.5m which further widen the scope and range of the services we offer. Additional consideration of up to £5.6m is payable dependent on future financial performance. We intend to continue prudently investing in new opportunities in our chosen industry sectors.

Earnings per share - Basic earnings per share were 59.5p, up 27.4% over last year and diluted adjusted earnings per share were 67.1p, up 37.5%.

Dividends - An interim dividend of 7.1p per share (2007: 5.8p) was paid to shareholders on 18 November 2008. The Directors will propose a final dividend of 13.7p per share at the Annual General Meeting on 15 May 2009, to be paid on 19 June 2009 to shareholders on the register at close of business on 5 June 2009. If approved, this will make a full year dividend of 20.8p per share (2007: 18.0p), an increase of 15.6%. This is in line with our dividend policy and reflects the good performance of the Group.

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