Why Intertek Group Is Up 37% This Year

LONDON -- Intertek Group (LSE: ITRK.L  ) has advanced 37% to 2,797 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The company -- which provides quality and safety solutions for products, processes, and systems in more than 100 countries -- seems to have impressed investors with a series of positive statements.

During March, Intertek announced 2011 results that showed operating profits improve 24% to 281 million pounds with revenues rising 27% to 1,749 million pounds and a dividend up 20% to 33 pence per share. The group said the results included both strong organic and acquisitive growth with Moody International, an acquisition made in April 2011, performing ahead of expectations.

During May, Intertek's interim four-month statement revealed organic revenues had grown 9.5%, and total revenues increased 40%. Of the five divisions, only chemicals and pharma had a relatively disappointing performance with no significant new regulations to capitalize on. In addition to the continuing success of the Moody acquisition, there was strong organic growth in both commodities and commercial and electrical, with much of the demand coming from Asia.

Then in July, Intertek disclosed half-year results that showed profits up by 28% to 152 million pounds, revenues increasing 30% to 991 million pounds and a dividend rising 22%. Wolfhart Hauser, chief executive officer of Intertek, commented:

Our businesses continue to perform well. Within energy and commodities end-markets we are seeing very good demand for global quality services. Demand in consumer retail and commercial manufactured product industries was strong against a weaker prior year period. Customers continue to seek more testing support on the performance, sustainability and compliance of products and new technologies and are seeking greater 'total supply chain' quality solutions.

Intertek's next trading update will be published on Nov. 19, which may reveal further encouraging news that can impress investors.

More blue-chip winners of 2012 are revealed in "Neil Woodford's Favorite Large Caps", an exclusive Fool report that names the FTSE shares the market-trouncing City investor is backing today, and the investing logic behind them.

You can discover the potential winners Woodford favors right now by downloading this free report while it remains available.

Are you looking to profit from this uncertain economy? "10 Steps to Making a Million in the Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

Barry James does not own shares of any company mentioned in this article. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2073548, ~/Articles/ArticleHandler.aspx, 8/30/2014 2:20:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement