- Intertek‘s half-year revenue was reported at GBP 1.67 billion, slightly below the estimate of GBP 1.69 billion.
- The adjusted operating profit was GBP 276.3 million, narrowly missing the estimated GBP 277.8 million.
- The products segment generated an adjusted operating profit of GBP 135.6 million.
- The interim dividend per share was 57.3p, falling short of the estimated 62.8p.
- Operating profit reached GBP 246.8 million, which was below the expectation of GBP 253.8 million.
- Pretax profit was GBP 226.5 million, missing the estimate of GBP 230.4 million.
- Adjusted pretax profit surpassed estimates at GBP 256.0 million compared to a projected GBP 254.6 million.
- The adjusted operating margin was 16.5%.
- The company recorded a free cash flow of GBP 56.0 million, significantly lower than the GBP 162.5 million estimate.
- Adjusted earnings per share (EPS) were 111.5p, exceeding the estimate of 110.5p.
- Intertek is on track to meet its medium-term targets, aiming for mid-single digit like-for-like (LFL) revenue growth and an 18.5%+ margin with strong cash flow.
- There is an expectation of mid to high-single digit LFL revenue growth in the medium-term, at constant currency.
- The company anticipates a strong performance in the second half of 2025, with continued mid-single digit LFL revenue growth, margin improvement, and robust free cash flow.
- Revenue increased by 4.5% due to strong LFL revenue growth and contributions from acquisitions.
- Margin expansion of 80 basis points was driven by a strategic portfolio mix, pricing strategies, operational leverage, cost management, productivity enhancements, and margin-accretive investments.
- Analyst recommendations include 11 buys, 6 holds, and 1 sell.
Intertek on Smartkarma
Analyst coverage of Intertek on Smartkarma by Baptista Research shows a positive outlook for the company. In their research report titled “Intertek Group PLC: Initiation of Coverage- Strategic Innovation & Market Access Expansion Can Help Maintain Its Solid Market Position!”, Baptista Research highlights Intertek‘s solid financial performance for the fiscal year 2024, slightly exceeding market expectations. The report mentions the company’s achievement of mid-single-digit like-for-like revenue growth for the fourth consecutive year, with a 6.6% increase at constant exchange rates. Operating profit also saw a significant rise of 13% at constant currency, with a notable improvement in operating margin by 100 basis points to 17.4%.
A look at Intertek Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysing Intertek‘s long-term outlook using Smartkarma Smart Scores reveals a relatively positive overall picture. While the company’s Value score falls in the middle range, its Growth score is notably strong, indicating promising potential for expansion and development in the future. Moreover, with solid scores in Dividend, Resilience, and Momentum, Intertek demonstrates a stable financial standing and a consistent performance track record.
Intertek Group plc, a company specializing in product inspection services, covers a wide range of industries including textiles, toys, petroleum products, chemicals, electronics, building materials, and agricultural products. With a focus on ensuring product safety and certification, Intertek plays a crucial role in facilitating trade by certifying compliance with safety regulations and proper payment of import duties, thus enhancing market transparency and consumer protection.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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