IIOA member Intertek reports 2021 full year results

March 1, 2022

Intertek have reported their 2021 full year results with revenue growth to 2,786.3m GBP, an increase of 6.5% at constant rates, 5.6% like-for-like and 1.6% at actual rates.

Intertek describe the key drivers affecting these results as, ‘The supply chain disruption being experienced by corporations across multiple industries has made the need for comprehensive risk-based quality, safety and sustainability assurance more critical than ever. Companies are investing in Quality Assurance to build greater resilience and safety, whilst innovating to deliver new high-quality products and services as consumer expectations rapidly evolve. The sprint to net zero emissions also means that corporations are reinventing the way they reduce their carbon footprints across their operations, adopting a comprehensive approach to sustainability with independently verified greater disclosures.’

In terms of the future prospects, Intertek note that, ‘Given our well diversified revenue streams across industries and geographies and the strong progress we have made in H2 21, we enter 2022 with confidence. Notwithstanding the supply chain challenges that our clients are facing in some of our markets, we expect the Group will deliver robust LfL growth at constant currencies with margin progression year on year and a strong free cash flow performance.’

Going into more specific performance, the Intertek, ‘Products business delivered a strong performance in 2021 in LfL revenue, operating profit and margin with all three measures ahead of 2019.
Revenue of £1,755.3m was up 9.1% at constant rates and 4.4% at actual rates.’

Within the products business, ‘Business Assurance business delivered high-single digit LfL revenue growth for the second half resulting in double-digit LfL revenue growth for the full year. The reduction of lockdown activities has driven a rebound in the number of ISO audits in some of our operations, while we continue to benefit from the attractive growth in supply chain assurance, the continuous focus on ethical supply, the increased needs of corporations for sustainability assurance and the strong growth in our People Assurance segment.’

2022 growth outlook in the Products division, ‘In 2022 we expect our Products division to deliver robust LfL revenue growth at constant currency. Our Products division will benefit from mid to long-term structural growth drivers including product variety, brand and supply chain expansion, product innovation and regulation, the growing demand for quality and sustainability from developed and emerging economies, the acceleration of e-commerce as a sales channel, and the increased corporate focus on risk.’

The full Intertek 2021 results can be viewed here and a presentation is available here.