Intertek cutting guidance as revenue falters

 
Joseph Millis
SHARES in UK product-testing firm Intertek plunged 7.76 per cent yester­day after it cut full-year guidance.

Intertek reported third-quarter 2.5 per cent revenue growth at constant currency, but exchange rates resulted in 5.1 per cent decline for the quarter.

Organic revenue growth ceased as it exited certain low-value industry contracts, accounting for a fall to minus 0.7 per cent and incurring a £15m restructuring charge.

The consumer goods and commercial and electrical divisions, which accounted for 50 per cent of operating profit in 2013, delivered positive performances driven by textiles growth in newer sourcing countries India, Vietnam and Turkey.

Delays in oil and gas capital expenditure hit the industry and assurance division. Operational expenditure-related services continued to grow, although this represents a smaller section of its oil and gas services. But chief executive Wolfhart Hauser was optimistic, say­ing: “Looking to 2015, we expect revenue growth to strengthen, led by our product-related businesses, but remain cautious about our oil and gas capex end-markets.”