Intertek makes strong start, trading in line
Testing and inspections company Intertek said it has made a strong start to the financial year with trading in line with management expectations.
It said Consumer Goods continue to show strong revenue growth. Toys and hardlines testing in South China and Hong Kong are driving the growth due to the demand for better quality product from those countries after recent product recalls.
Textiles testing is continuing to grow, though the Inspection Division is growing less strongly, in line with slowing global trade flows.
"Despite the continuing mix effect on the margin due to higher growth in lower margin businesses, the overall margin is stable and in line with our expectations," said the group.
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Organic and margin growth is being supplemented by acquisitions in the Commercial & Electrical division, while in Analytical Services there has been delays in a few large orders in pharmaceutical and downstream activities.
Government Services is showing flat revenue growth but maintaining profit margins.
"To date, market conditions remain supportive in our key industry sectors. We will continue to capture additional market opportunities based on our focused strategy of offering added-value services and supporting customers in their global trade. We expect that 2008 will be another good year for Intertek," said chief executive Wolfhart Hauser.
