A strong third quarter performance from testing and certification firm Intertek (ITRK) helped lift the shares 5.7% to £54.52.
Today’s rise follows a period of underperformance for the shares which are down 3.8% over the last 12 months against a gain of 14.1% for the FTSE All-Share.
The company which is the largest tester of consumer products globally, operating 1,000 labs in 100 countries, said revenue grew 6.7% in the July to October period, driven by a boost from acquisitions.
All divisions delivered like-for-like revenue growth, with products up 5.5%, trade up 3.7% and resources up 4.7% in the period.
ROBUST GROWTH
‘Looking to the full year, we are on track to deliver robust like-for-like revenue growth at constant currency, year on year margin progression and a strong free cash flow performance, notwithstanding the lockdown restrictions still in place across some of our global markets and the supply chain challenges that our clients are facing,’ CEO Andre Lacroix said.
Shore Capital analyst Robin Speakman commented: ‘Intertek is a quality business, in our view, alongside its peers in the TIC (testing, inspection and certification) and Assurance sectors.
‘We see much to like as new technologies and global standards emerge requiring support services. Yet this does not translate into double digit organic growth rates, nor does it mean that still competition for clients can be ameliorated.’
