Intertek November Trading Update

IIOA member Intertek has given its November trading update with revenue for the year to date (January to October 2024) at 2.8bn GBP, a 6.6% increase at constant currency, an actual increase of 1.8%.

Within the overall results, Intertek reports on the Corporate Assurance division:

‘In the four-month period to end October 2024, our Corporate Assurance-related business delivered a LFL revenue of £168.4m up YoY by 9.9% at CCY and on a YTD basis LFL revenue of £408.0m is up at CCY by 8.9% and by 4.1% YoY at actual rates.

• Business Assurance delivered double digit LFL revenue growth in the period and high-single digit LFL revenue growth on a YTD basis driven by increased investments by our clients to improve the resilience of their supply chains, the continuous focus on ethical supply and the greater need for sustainability assurance.
• The Assuris business reported high-single digit LFL revenue performance in the four months and a mid-single digit LFL revenue performance on a YTD basis as we continue to benefit from improved demand for our regulatory assurance solutions and from increased corporate investment in ESG.’

In terms of outlook for the remainder of 2024 for Corporate Assurance, Intertek state, ‘we continue to expect our Corporate Assurance division to deliver high-single digit LFL revenue growth at constant currency.’ In the medium to long term, ‘Our Corporate Assurance division will benefit from a greater corporate focus on sustainability, the need for increased supply chain resilience, enterprise cyber-security, People Assurance services and regulatory assurance.’

In terms of the overall outlook across Intertek, initially for 2024, Intertek note, ‘Given our strong performance on a YTD basis, we expect that the Group will deliver a strong performance in 2024 with mid-single digit LFL revenue growth at constant currency, strong margin progression and an excellent free cash flow performance. Our mid‐single digit LFL revenue growth at constant currency, includes the Corporate Assurance division delivering High-single digit’.

Further ahead, Intertek states that there is, ‘Significant value growth opportunity ahead. Our clients are increasing their focus on Risk-based Quality Assurance to operate with higher standards on quality, safety and sustainability in each part of their value chain, triggering a higher demand for our ATIC (assurance, testing, inspection and certification) solutions’.

The Intertek trading statement can be viewed here.