Intertek profits spike on boost from emerging markets growth

TESTING group Intertek yesterday posted a 19 per cent jump in full-year profit, lifted by growth in its energy business and its exposure to emerging markets.

Pre-tax profit came in above expectations at £308.4m for the full year, on revenues 17 per cent higher at £2.05bn.

Intertek’s energy infrastructure division, the group’s largest by revenue, saw organic profit jump by 19 per cent to £77.4m.

This was supplemented by growth added by the group’s £450m acquisition of haulage firm Moody International in April 2011, which has now started to feed through into its results. The FTSE 100 firm, which tests products from toys and clothes to oil and renewable technology, made six bolt-on acquisitions last year in deals worth £40m.

Its consumer goods division, which is a world market leader, saw the slowest organic profit growth of 4.5 per cent, though the firm said demand from China was and supplemented by “strong” growth in Turkey, Korea and Vietnam.

Chief executive Wolfhart Hauser said yesterday that the group continues to expect “high single digit organic revenue growth, margin enhancement and value adding acquisitions” this year.

Separately, Intertek yesterday said it had completed two acquisitions in South Africa and Brazil worth £7m in total.

The firm has been singled out as one of the few potential winners from the ongoing horsemeat scandal, though just 2.5 per cent of its total revenues come from food testing.