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Intertek ‘ahead of expectations’ despite fall in profit

Intertek pre-tax profit down by 19%

Intertek (LON:ITRK), the FTSE 100 assurance, inspection, product testing and certification company, confirmed a drop in its profit during 2020 but the company is expecting a strong year ahead.

Adjusted operating profit fell by 18.4% to £427.7m, while pre-tax profit dipped by 19% to £392.8m.

Intertek’s revenue fell from £2.98bn in 2019 to £2.7bn.

Intertek confirmed its full year dividend payment for 2020 at 105.8p, “in-line” with its 2019 payout.

On Tuesday’s early morning trading, Intertek’s share price is up 2.59% to 5,622p. Year-to-date the company’s share price is well down from 5,870.

Looking ahead, the company vowed to continue its focus on on sustainability, targeting net zero emissions by 2050. Intertek also stated that it is strongly positioned for growth during the pandemic recovery, as it will focus on risk and M&A growth opportunities.

André Lacroix, chief executive of Intertek, commented on the results:

“I am very proud of the energy, agility and innovation of our colleagues around the world that has enabled us to navigate a difficult 2020 with a laser focuson health and safety, customer service, cost control, cash management and employee engagement. My sincere thanks to all my colleagues.”

“In 2020, we delivered resilient revenue of £2,742m, down 6.7% at constant rates, with our earnings and cash performance well ahead of expectations. This has enabled us to deliver sustained returns to our shareholders with a full year dividend of 105.8p, in-line with 2019, reflecting our strong financial position and confidence in the future.”

Lacroix expects Intertek to continue to benefit from the pandemic into 2021.

“In 2021, we will continue to benefit from the COVID -19 recovery and the attractive growth opportunities in our industry. We are confident that the Group will continue to drive sustained value for our shareholders with year-on-year progress in revenue, margin and cash.”

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