REG - Intertek Group Plc - Final Results
04/03/2025 07:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250304:nRSD1877Za&default-theme=true
RNS Number : 1877Z Intertek Group PLC 04 March 2025
2024 FULL YEAR RESULTS ANNOUNCEMENT
4 March 2025
Strong performance in 2024 and significant value growth opportunity ahead
Initial £350m share buyback announced and medium-term margin target raised to
18.5%+
• Robust revenue growth
• Revenue of £3,393m, up 6.6% at constant currency and +1.9% at
actual rates
• LFL growth of 6.3%(1): Consumer Products 8.0%, Corporate Assurance
7.8%, Health and Safety 7.9%, Industry and Infrastructure 1.7%, and World of
Energy 8.0%
• Strong margin progression to 17.4%
• 100bps(1) increase in margin driven by mix, pricing, operating
leverage, cost control and productivity
• Faster delivery than expected of medium-term margin target of 17.5%+
set in May 2023
• Adjusted operating profit growth of 13%(1) and +7.1% at actual rates
to £590m
• +15.2% growth in adjusted diluted EPS at constant currency and +7.9%
at actual rates
• Strong cash generation and financial position
• Daily cash discipline delivers cash conversion of 121% and adjusted
free cash flow to £409m, up 8.0%(2)
• Net financial debt reduced to £500m(2) and net financial
debt/EBITDA improved to 0.7x
• Disciplined capital allocation
• Investments in organic growth of £135m and acquisition of Base Met
Labs
• Value accretive M&A contributing 2024 revenue of £207m and
margin of 25.1%(3)
• Excellent progress in ROIC to 22.4% up +250bps at constant currency
and +190bps at actual rates
• Shareholder returns
• Full year dividend of 156.5p, +40.1% year on year in line with
dividend policy of circa 65% payout ratio
• Initial £350m share buyback announced demonstrating Intertek's
highly cash generative earnings model
• Robust growth outlook expected in 2025 and medium-term margin target
raised to 18.5%+
• Mid-single digit LFL revenue growth at constant currency, margin
progression and strong cash flow in 2025
• Medium term margin target raised to 18.5%+, capitalising on faster
ATIC growth and proven processes
A FY results video is available on our website:
https://www.intertek.com/investors/2024-full-year-results-video/
(https://www.intertek.com/investors/2024-full-year-results-video/)
Note 1: at constant currency Note 2: at actual rates Note 3: Contribution of
acquisitions made in the last five years
André Lacroix: CEO statement
"I would like to recognise all my colleagues for their dedication and
commitment to delivering superior service to our clients that underpins our
strong 2024 performance of robust revenue growth, strong margin progression,
double-digit earnings growth, excellent cash generation and ROIC. The
acquisitions we have made over the last five years in the high growth and high
margin segments are adding real value to the Intertek portfolio and have
contributed £207m to the 2024 revenue and delivered a margin of 25.1%. We
continue to see a steady pipeline of acquisition opportunities and we will
remain disciplined to make sure we augment the unique strengths of Intertek's
business model with value accretive M&A.
The value growth opportunity for all Intertek stakeholders moving forward is
significant. 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 solutions which are powered by our Science-based Customer
Excellence Advantage. We unveiled our Intertek AAA Differentiated Growth
Strategy in May 2023, to seize the increased demand for our industry-leading
solutions, leveraging our best-in-class operating platform, and targeting the
areas where we have opportunities to improve performance. As these results
demonstrate, the execution of our AAA Strategy is on track and the growth
opportunity ahead to create superior value for all stakeholders is truly
exciting.
Our high-growth cash compounder earnings model is getting stronger every year
which gives us the opportunity to further reward our shareholders whilst still
investing organically and looking for value accretive inorganic growth
opportunities. Given the strength of our earnings model, our performance track
record, confidence in future growth opportunities and the current level of
leverage compared to our target leverage levels of 1.3x - 1.8x net financial
debt to EBITDA, the Board today announced an initial £350 million share
buyback to be completed during the current financial year. Subject to
compelling organic and inorganic investment opportunities to deploy capital,
to leverage remaining sustainably below the bottom of our target range, and to
any relevant external macroeconomic factors, we expect our share buybacks to
remain a core element of our capital allocation policy and to recur regularly.
We are entering 2025 with confidence the Group will deliver a robust
performance with mid-single digit LFL revenue growth at constant currency,
margin progression and a strong cash flow performance. We have delivered a
strong margin of 17.4% in 2024, effectively achieving our medium term target
of 17.5%+ faster than expected, and today we are announcing a new margin
target of 18.5%+ in the medium-term, capitalising on the revenue growth
acceleration we are seeing for our ATIC solutions, our disciplined performance
management and our investments in high growth and high margin segments."
Key Adjusted Financials 2024 2023 Change at actual rates Change at constant rates(1)
Revenue £3,393.2m £3,328.7m 1.9% 6.6%
Like-for-like revenue(2) £3,378.8m £3,324.1m 1.6% 6.3%
Operating profit(3) £590.1m £551.1m 7.1% 13.0%
Operating margin(3) 17.4% 16.6% 80bps 100bps
Profit before tax(3) £547.8m £507.2m 8.0% 15.4%
Diluted earnings per share(3) 240.6p 223.0p 7.9% 15.2%
Dividend per share 156.5p 111.7p 40.1%
Cash flow from operations less net capex(3) £659.2m £643.6m 2.4%
Adjusted Free Cash Flow(3) £408.8m £378.4m 8.0%
Net financial debt(4) £499.8m £610.6m (18.1%)
Net financial debt / EBITDA(3, 4) 0.7x 0.8x
ROIC(5) 22.4% 20.5%
Key Statutory Financials 2024 2023 Change at actual rates (1) Constant rates are calculated by translating 2023 results at 2024 exchange
rates.
Revenue £3,393.2m £3,328.7m 1.9% (2) LFL revenue includes acquisitions following their 12-month anniversary of
ownership and excludes the historical contribution of any business
disposals/closures.
(3) Adjusted results are stated before Separately Disclosed Items ('SDIs'),
see note 3 to the Condensed Consolidated Financial Statements.
(1,2,3) Reconciliations for these measures are shown in the Presentation of
Results section.
(4) Net financial debt excludes the IFRS 16 lease liability of £299.6m. Total
net debt is £799.4m. See note 6.
(5) ROIC is defined as adjusted profit after tax divided by invested capital.
Operating profit £535.7m £486.2m 10.2%
Operating margin 15.8% 14.6% 120bps
Profit before tax £490.0m £422.3m 16.0%
Profit after tax £367.2m £318.1m 15.4%
Diluted earnings per share 212.7p 183.4p 16.0%
Cash generated from operations £775.8m £725.9m 6.9%
The Directors will propose a final dividend of 102.6p per share (2023:74.0p)
at the Annual General Meeting on 22 May 2025, to be paid on 20 June 2025 to
shareholders on the register at close of business on 30 May 2025.
Contacts
For further information, please contact:
Denis Moreau, Investor Relations
Telephone: +44 (0)20 7396 3415
investor@intertek.com (mailto:investor@intertek.com)
Jonathon Brill/James Styles, DGA Group
Telephone: +44 (0) 7836 622 683
intertek@dgagroup.com (mailto:intertek@dgagroup.com)
Analysts' Call
A live audiocast for analysts and investors will be held today at 9.30am.
Details can be found at http://www.intertek.com/investors/
(http://www.intertek.com/investors/) together with presentation slides and a
pdf copy of this report.
A recording of the audiocast will be available later in the day.
Annual Report
The Annual Report comprising the Strategic, Sustainability and Financial
Reports for the year ended 31 December 2024 will be available on the Company's
website www.intertek.com (http://www.intertek.com/) on 21 March 2025.
Intertek is a leading Total Quality Assurance provider to industries
worldwide.
Our network of more than 1,000 laboratories and offices in more than 100
countries, delivers innovative and bespoke Assurance, Testing, Inspection and
Certification solutions for our customers' operations and supply chains.
Intertek is a purpose-led company bringing Quality, Safety and Sustainability
to life. We provide 24/7 mission-critical Quality Assurance solutions to our
clients to ensure that they can operate with well-functioning supply chains in
each of their operations.
Our Customer Promise is: Intertek Total Quality Assurance expertise, delivered
consistently, with precision, pace and passion, enabling our customers to
power ahead safely.
intertek.com
Intertek CEO Letter
Strong 2024 financial performance and significant value growth opportunity
ahead
Initial £350m share buyback announced and medium-term margin raised to 18.5%+
I would like to recognise all my colleagues for their unwavering support
enabling us to deliver a strong 2024 performance in revenue, margin, EPS, cash
and ROIC. Our revenue grew by 6.6% at constant currency driven by a LFL
revenue growth of 6.3%, and the contribution of our acquisitions. Leveraging
our robust topline performance, we have delivered an even stronger earnings
performance with an operating margin improvement of 100bps at constant
currency, and an EPS growth of 15.2% at constant currency. Cash conversion at
121% was excellent, enabling us to deliver our highest ever cash from
operations of £789m and resulting in our net financial debt declining by
£111m to £500m. We have a strong balance sheet giving us the ability to
invest in growth. ROIC increased by 190bps to 22.4%.
The acquisitions we have made over the last five years in the high growth and
high margin segments are adding real value to the Intertek portfolio and have
contributed £207m to the 2024 revenue and delivered a margin of 25.1%. We
continue to see a steady pipeline of acquisition opportunities and we will
remain disciplined to make sure we augment the unique strengths of Intertek's
business model with value accretive M&A. The Board's decision last year to
update our capital allocation policy by increasing the dividend payout ratio
to circa 65% reflects our confidence in the long-term outlook for the
business.
The value growth opportunity ahead is significant. 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 solutions which are powered by our
Science-based Customer Excellence Advantage. Over the last ten years, from
2014-2024, we have delivered a CAGR of 4.9%, 6.2% and 6.2% for revenue,
adjusted operating profit and EPS respectively, notwithstanding the impact of
Covid. We unveiled our Intertek AAA Differentiated Growth Strategy in May 2023
to seize the higher demand for our industry-leading solutions, leveraging the
best-in-class operating platform we have built, and targeting the areas where
we have opportunities to improve performance. As these results demonstrate,
the execution of our AAA Strategy is on track and the growth opportunity ahead
to create superior value for all stakeholders is truly exciting.
Our high-growth cash compounder earnings model is getting stronger every year
which gives us the opportunity to further reward our shareholders whilst still
investing organically and looking for value accretive inorganic growth
opportunities. Given the strength of our earnings model, our performance track
record, confidence in future growth opportunities and the current level of
leverage compared to our target leverage levels of 1.3x - 1.8x net financial
debt to EBITDA, the Board today announced an initial £350 million share
buyback to be completed during the current financial year. Subject to
compelling organic and inorganic investment opportunities to deploy capital,
to leverage remaining sustainably below the bottom of our target range, and to
any relevant external macroeconomic factors, we expect our share buybacks to
remain a core element of our capital allocation policy and to recur regularly.
We are entering 2025 with confidence the Group will deliver a robust
performance with mid-single digit LFL revenue growth at constant currency,
margin progression and a strong cash flow performance. We have delivered a
strong margin of 17.4% in 2024, effectively achieving our medium term target
of 17.5%+ faster than expected, and today we are announcing a new margin
target of 18.5%+ in the medium-term, capitalising on the revenue growth
acceleration we are seeing for our ATIC solutions, our disciplined performance
management and our investments in high growth and high margin segments.
Strong Value Delivered
In 2015, we took the decision to reinvent ourselves, making Assurance,
Testing, Inspection and Certification, or ATIC, our Customer Promise and we
rebranded Intertek as Total Quality. Assured.
Our strategic goal with ATIC is to provide a better-quality Assurance customer
service, given how much global trade has changed in the last 50 years. Today,
companies operate in a truly global market, running complex global
multi-sourcing and manufacturing operations, pursuing an omni-channel
approach, when distributing their products and services globally and locally.
We were ahead of our time in 2015 and now our clients agree that our industry
has changed and is now all about Risk-based Quality Assurance powered by ATIC.
Assurance provides the independent end-to-end data on where the quality,
safety and sustainability risks are in the entire value chain of any company,
while Testing, Inspection and Certification provide the critical independent
quality controls in the high-risk areas of supply chains.
We have made strong progress between 2014 and 2024 notwithstanding the impact
of Covid and have delivered sustainable growth and value for all stakeholders
with the following achievements:
• Revenue growth of 62%, CAGR of 4.9% to £3.4bn
• Adjusted operating profit CAGR of 6.2% and margin increase of
190bps to 17.4%
• Compound annual EPS growth of 6.2%
• Dividend per share more than tripled
• Cash generated from operations nearly doubled to £789m
• ROIC improvement of 610bps to 22.4%
Metric(1) 2014(2) 2024 Change
Revenue £2,093.3m £3,393.2m 62%
Operating profit £324.4m £590.1m 82%
Operating margin 15.5% 17.4% 190bps
Diluted earnings per share 132.1p 240.6p 82%
Dividend 49.1p 156.5p 219%
WC as % Revenue 9.3% (2.8%) n/a
Cash generated from ops £403.7m £789.2m 95%
ROIC 16.3% 22.4% 610bps
Note (1): On an adjusted basis, (2) 2014 metrics are on an IAS17 basis
Our good to great journey continues with our AAA differentiated growth
strategy to unlock the significant value growth opportunity ahead.
Faster Global Growth for ATIC Solutions
Our industry has always benefitted from attractive growth drivers and now more
than ever everyone wants to build an ever-better world which means that
corporations will invest more in quality, safety and sustainability,
accelerating the demand for our industry-leading ATIC solutions.
Indeed, our customer research shows the well-known attractive structural
growth drivers in the Risk-based Quality Assurance industry will be augmented
by:
• The need to operate with safer and more resilient supply chains
• Continued investments in new products and services
• A step-change in managing Sustainability
• Increased investment in Oil & Gas ('O&G') and renewables
• An increase in the number of new clients, both in developed and
emerging economies
Covid-19 has been a catalyst for many corporations to improve the resilience
of their supply chains. We are seeing a significant change of focus within our
clients on how they manage their value chains with:
· Better data on the entire/whole supply chain
· Tighter risk management with improved business continuity planning
· A more diversified portfolio strategy with tier 1/2/3 suppliers
· A more diversified factory footprint strategy
· More investment in processes, technology, training, and independent
assurance
Our superior Assurance offering means we are well positioned to help our
clients reduce the intrinsic risks in their operations.
Our clients have also realised that they need to invest more in product and
service innovation to meet the changing needs of their customers. A recent
survey by the Ayming Institute shows that 73% of R&D leaders expect to
increase their R&D investments in 2025. These investments in innovation
mean a higher number of SKUs and a higher number of tests per SKU that will be
beneficial for our Testing and Certification solutions.
The other major area of investment by corporations is sustainability and we
are seeing positive momentum with new and emerging regulations. This means
companies are reinventing the way they manage their sustainability agenda with
greater emphasis on independently verified non-financial disclosures. This is
excellent news for our industry-leading Total Sustainability Assurance
solutions. Sustainability is the movement of our time.
The growth opportunities in the World of Energy are truly exciting as energy
companies are planning higher investments in their supply chains. In the last
few years, we witnessed increased concerns about energy security, and
widespread agreement that global energy production capacity is an issue that
needs to be addressed quickly to meet the growing demand for energy today.
Given the under-investment in traditional O&G exploration and production
in the last decade and the lack of scale in renewables, investment for
production in traditional O&G and in renewables will continue to rapidly
increase. This is excellent news for our Intertek Caleb Brett and Moody
businesses.
We are seeing significant growth in the number of companies globally given the
lower barriers to entry for any brand with e-commerce capabilities. The lack
of Quality Assurance expertise of these young companies is excellent news for
our Global Market Access solutions. Our decentralised Customer 1(st)
organisation has a strong track record of winning new clients.
Intertek AAA Differentiated Growth Strategy
At our Capital Markets event in May 2023, we unveiled our Intertek AAA
Differentiated Growth Strategy to seize the increased demand for our
industry-leading ATIC solutions, capitalising on the best-in-class operating
platform we have built and targeting the areas where we have opportunities to
get better. Our passionate, innovative, and customer-centric organisation is
energised to take Intertek to greater heights delivering AAA performance for
all stakeholders.
We have made strong progress between 2015 and 2024 delivering sustainable
growth and value for our stakeholders and we are very excited about the
significant growth value opportunity ahead, capitalising on our
Science‐based Customer Excellence TQA advantage.
Our Intertek AAA Differentiated Growth Strategy is about being the best and
creating significant value for every stakeholder, every day.
We want to be the most trusted TQA partner for our customers, the employer of
choice with our employees, to demonstrate sustainability excellence everywhere
in our community and deliver significant growth and value for our
shareholders.
To seize the significant growth value opportunity ahead we will be
laser-focused on three strategic priorities and three strategic enablers. Our
Strategic Priorities are defined as Science-based Customer Excellence TQA,
Brand Push & Pull and Winning Innovations; and our three strategic
enablers are based on 10X Purpose-based Engagement, Sustainability Excellence
and Margin Accretive Investments. We will both further improve where we are
already strong and address the areas where we can get better.
Our high‐quality portfolio is poised for faster growth:
• The depth and breadth of our ATIC solutions positions us well to
seize the increased corporate needs for Risk‐based Quality Assurance
• All of our global business lines have plans in place to seize the
exciting growth drivers in each of our divisions
• At the local level, our country‐business mix is strong, with the
majority of our revenues exposed to fast growth segments
• Geographically we have the right exposure to the structural growth
opportunities across our global markets
Mid-Single Digit LFL Revenue Growth Target
In terms of LFL revenue growth in the medium to long term, we are targeting
Group mid-single digit LFL revenue growth at constant currency with the
following expectations by division:
· Low- to mid‐single digit in Consumer Products
· High-single digit to double-digit in Corporate Assurance
· Mid- to high-single digit in Health and Safety
· Mid- to high-single digit in Industry and Infrastructure
· Low- to mid‐single digit in the World of Energy
New Medium Term Margin Target of 18.5%+
We have delivered a strong margin of 17.4% in 2024 broadly in line with the
17.5%+ target we set in May 2023 and have set a new margin target of 18.5%+ in
the medium-term, capitalising on the revenue growth acceleration we are seeing
for our ATIC solutions, our disciplined performance management and our
investments in high growth and high margin segments.
Margin accretive revenue growth is central to the way we deliver value, and we
are confident that over time we will deliver our medium-term margin target of
18.5%+. Our confidence is based on three simple reasons: we continue to expect
mid-single digit revenue growth over the medium-term and we will benefit from
our operational leverage; we continue to drive efficiencies in our business;
and we continue to pursue higher margin opportunities in our portfolio. Our
revenue growth will also drive some operational leverage, while our pricing
discipline and our focus on mix will continue.
We announced a cost reduction programme in 2022 that targets productivity
opportunities based on operational streamlining and technology upgrade
initiatives. Our cost reduction programme delivered £13m of savings in 2023,
£11m in 2024 and we expect the programme to deliver a further £3m additional
savings in 2025.
Value Accretive M&A
The acquisitions we have made over the last few years in the high growth and
high margin segments are adding real value to Intertek.
Strategic investments in recent years include the acquisition of SAI Global
Assurance
(https://www.intertek.com/news/2021/05-13-intertek-to-expand-its-global-assurance-business-with-acquisition-of-sai-global-assurance/)
in May 2021, a highly complementary, capital-light and high-margin Quality
Assurance business, that added to our existing strengths in industries like
Food, Quick-Service Restaurants ('QSR') and Forestry and expands our business
in Australia, USA, Canada and China. JLA Brasil Laboratório de Análises de
Alimentos S.A. was acquired
(https://www.intertek.com/news/2021/07-21-intertek-acquires-jla-brazil/) the
same year in July, expanding our existing strengths in Food and Agri Assurance
capabilities into the attractive food-testing market in Brazil, which is one
of the world's largest agri-food exporters.
In July 2022 we acquired Clean Energy Associates ('CEA'),
(https://www.intertek.com/news/2022/07-29-intertek-to-acquire-cea/) a
market-leading provider of Quality Assurance, supply-chain traceability and
technical services to the fast-growing solar energy sector. The CEA
acquisition continues to empower the expansion of our sustainability service
offering in the Quality Assurance market for the sector.
In April 2023, we announced the acquisition of Controle Analitico
(https://www.intertek.com/news/2023/04-03-intertek-to-acquire-controle-analitico/)
, a leading provider of environmental analysis, with a focus on water testing,
based in Brazil. The acquisition was a compelling strategic fit, expanding our
footprint of leading Food and Agri TQA solutions in Brazil.
In August 2023, we announced the acquisition of US-based PlayerLync
(https://www.intertek.com/news/2023/08-24-intertek-acquires-playerlync/) , a
leading provider of high-quality mobile-first training and learning content to
frontline workforces at some of the world's leading consumer brands,
strengthening our position as a leader in SaaS-based, technology-enabled
People Assurance services. We invested in our People Assurance business with
the acquisition of Alchemy/Wisetail in 2018, and PlayerLync provides a
compelling opportunity to further enhance our differentiated TQA proposition
and customer excellence advantage in what is a fast-evolving landscape.
In March 2024, we announced the acquisition of Base Metallurgical Laboratories
(https://www.intertek.com/news/2024/intertek-to-acquire-base-met-labs/) , a
leading provider of metallurgical testing services for the Minerals sector
based in North America, reinforcing and expanding Intertek's ATIC offering in
the Minerals industry. The acquisition of Base Met Labs is highly
complementary to our ATIC service offering, establishing a Minerals testing
footprint for Intertek on the American continent and creating attractive
growth opportunities with existing and new clients.
The acquisitions made in the last five years contributed £207m to 2024
revenue and delivered a margin of 25.1%.
We see a steady pipeline of M&A opportunities in attractive high margin
and high growth areas to broaden our ATIC portfolio of solutions with new
services we can offer to our clients and to expand our regional coverage. We
will remain disciplined and selective to make sure we augment the unique
strengths of Intertek's business model.
AAA Virtuous Economics
We operate a differentiated, high-quality growth business with excellent
fundamentals and intrinsic defensive characteristics, giving our customers the
Intertek Science-based ATIC advantage to strengthen their businesses.
To deliver sustainable growth and value we will stay focused on our AAA
Intertek Virtuous Economics based on the compounding effect year after year of
mid-single digit LFL revenue growth, margin accretive revenue growth, strong
free cash‐flow and disciplined investments in high growth and high margin
sectors.
We believe in the value of accretive disciplined capital allocation and pursue
the following priorities:
• Our first priority is to support organic growth through capital
expenditure and investments in working capital (target c.5% of revenue in
capex). In 2024, we invested £135m capital expenditure.
• The second priority is to deliver sustainable returns for our
shareholders through the payment of progressive dividends, targeting a payout
ratio of circa 65%.
• The third priority is to pursue M&A activities that strengthen
our portfolio in attractive growth and margin areas, provided we can deliver
good returns.
• And our fourth priority is to maintain an efficient balance sheet
with flexibility to invest in growth. Our leverage target is 1.3x - 1.8x net
financial debt to EBITDA with the potential to return excess capital to
shareholders subject to our future requirements and prevailing macro
environment.
Share buyback
Our proven, highly cash-generative earnings model is at the core of our
success, driven by margin accretive revenue growth, strong cash generation,
and disciplined investments in high-growth and high-margin sectors.
With a clearly established capital allocation policy targeting a leverage
range of 1.3-1.8x net financial debt to EBITDA, our strong performance has
resulted in a current leverage of 0.7x as of 31 December 2024. We will
continue to target investing approximately 5% of revenue annually in capex,
distributing circa 65% of earnings as dividends, and pursuing selective
M&A to drive growth and margin in leading market positions or new
attractive areas.
Our high-growth cash compounder earnings model is getting stronger every year
which gives us the opportunity to further reward our shareholders whilst still
investing organically and looking for value accretive inorganic growth
opportunities. Given the strength of our earnings model, our performance track
record, confidence in future growth opportunities and the current level of
leverage compared to our target leverage levels of 1.3-1.8x net financial debt
to EBITDA, the Board today announced an initial £350 million share buyback to
be completed during the current financial year. Subject to compelling organic
and inorganic investment opportunities to deploy capital, to leverage
remaining sustainably below the bottom of our target range, and to any
relevant external macroeconomic factors, we expect our share buybacks to
remain a core element of our capital allocation policy and to recur regularly.
Sustainability Excellence
Sustainability is the movement of our time and is central to everything we do
at Intertek, anchored in our Purpose, our Vision, our Values and our Strategy.
Sustainability is important to all stakeholders in society who are
consistently demanding faster progress and greater transparency in
sustainability reporting. Companies therefore continuously need to upgrade and
reinvent how they manage their sustainability agenda, particularly with
regards to how they disclose their non-financial performance.
This is why, under our global Total Sustainability Assurance (TSA) programme,
we provide our clients with proven independent, systemic and end-to-end
assurance on all aspects of their sustainability strategies, activities and
operations.
The TSA programme comprises three elements:
• Intertek Operational Sustainability Solutions
• Intertek ESG Assurance
• Intertek Corporate Sustainability Certification
For Intertek's Sustainability Excellence programme, we focus on the 10 highly
demanding TSA sustainability standards which are truly end-to-end and
systemic.
As a business, Intertek is committed to:
• Reducing absolute scope 1 and 2 GHG emissions by 50% by 2030 from
a 2019 base year;
• Reducing absolute scope 3 GHG emissions from business travel and
employee commuting by 50% within the same timeframe;
• Ensuring 70% of its suppliers by spend will have science-based
targets by 2027.
In 2024, we have made progress in several areas:
• Levels of Hazard Observations increased for the fifth consecutive
year, reflecting greater levels of activity across our sites as well as
greater awareness and reporting of health and safety overall.
• Since 2015, we have used the Net Promoter Score ('NPS') process to
listen to our customers, enabling us to improve our customer service over the
years consistently. In 2024, we conducted on average 6,036 NPS interviews per
month.
• We are driving environmental performance across our operations
through science-based reduction targets to 2030. By optimising energy use in
our offices and laboratories and transitioning to cleaner energy sources, we
reduced our operational market-based emissions by 16.7% against 2023 and 47.2%
against our base year 2019.
• In 2024 we conducted a preliminary Double Materiality Assessment,
to help us meet upcoming regulations.
• We recognise the importance of employee engagement in driving
sustainable performance for all stakeholders, and we measure employee
engagement against our Intertek ATIC Engagement Index. In 2024, we achieved a
new high score of 91 (2023: 87).
• Our voluntary permanent employee turnover improved to a five-year
low rate of 11.2% in 2024 (2023: 12.3%).
We will continue to lead by example by pursuing our Sustainability Excellence
agenda, energising deeply and genuinely all stakeholders: our people, our
customers, our regulators, our suppliers, our communities and our
shareholders.
Outlook 2025
We enter the first half of 2025 with confidence and expect the Group will
deliver a strong performance in 2025 with mid-single digit LFL revenue growth
at constant currency, margin progression and a strong free cash flow
performance.
Our mid‐single digit LFL revenue growth at constant currency will be driven
by the following contribution from our divisions:
• Consumer Products: Mid-single digit
• Corporate Assurance: High-single digit
• Health and Safety: Mid-single digit
• Industry and Infrastructure: Mid-single digit
• World of Energy: Mid-single digit
Our financial guidance for 2025 is that we expect:
• Capital expenditure in the range of £135-145m
• Net finance costs in the £42-44m range (pre-buyback and prior to
any material movements due to FX or M&A)
• Effective tax rate in the 25-26% range
• Minority interests of between £23-24m
• Targeted dividend payout ratio of circa 65%
• FY25 net financial debt to be in the range of £470-520m (guidance
pre-buyback and prior to any material movements due to FX or M&A)
The average sterling exchange rate in the last three months applied to the
full year results of 2024 would be neutral at the revenue and earnings levels
in 2025.
Significant Value Growth Opportunity Ahead
We have made strong progress in the last 10 years on our ATIC good to great
journey. Importantly, the value growth opportunity ahead is significant:
· The demand for our strong and differentiated ATIC value proposition
is accelerating.
· Our Science-based Customer Excellence TQA advantage and our stronger
portfolio at the global and local level positions us well for faster growth.
· Our Intertek AAA Differentiated Growth Strategy will capitalise on
the best-in-class operating platform we have built and target the areas where
we have opportunities to get better.
· Our passionate, agile, and high-performance organisation is energised
to take Intertek to greater heights delivering AAA performance for all
stakeholders.
We will deliver value consistently, targeting mid-single digit LFL revenue
growth at constant currency, 18.5%+ margin, and strong cash generation, while
pursuing value accretive investments in attractive growth and margin ATIC
spaces true to our disciplined capital allocation policy.
André Lacroix
Chief Executive Officer
Operating Review
For the year ended 31 December 2024
To present the performance of the Group in a clear, consistent and comparable
format, certain items are disclosed separately on the face of the income
statement. These items, which are described in the Presentation of Results
section of this report and in note 3, are excluded from the adjusted results.
The figures discussed in this review (extracted from the income statement and
cash flow) are presented before Separately Disclosed Items ('SDIs').
Overview of performance
2024 2023 Change at actual Change at constant
£m £m rates rates(1)
Revenue 3,393.2 3,328.7 1.9% 6.6%
Like-for-like revenue(2) 3,378.8 3,324.1 1.6% 6.3%
Adjusted Operating profit(3) 590.1 551.1 7.1% 13.0%
Margin(3) 17.4% 16.6% 80bps 100bps
Net financing costs(3) (42.3) (43.9) (3.6%) (10.4%)
Income tax expense(3) (135.2) (124.8) 8.3% 15.8%
Adjusted Earnings for the period(3) 390.8 361.7 8.0% 15.3%
Adjusted diluted earnings per share(3) 240.6p 223.0p 7.9% 15.2%
1. Constant rates are calculated by translating 2023 results at 2024
exchange rates.
2. LFL revenue includes acquisitions following their 12-month anniversary
of ownership and excludes the historical contribution of any business
disposals/closures.
3. Adjusted results are stated before SDIs, see note 3 to the Condensed
Consolidated Financial Statements.
Total reported Group revenue increased by 6.6%(1), with 0.3% growth
contributed by acquisitions, a LFL revenue increase of 6.3%(1) and a decrease
of 470bps from foreign exchange reflecting sterling appreciation against most
of the Group's trading currencies.
The Group's LFL revenue at constant currency consisted of an increase of 8.0%
in Consumer Products, 7.8% in Corporate Assurance, 7.9% in Health and Safety,
1.7% in Industry and Infrastructure and 8.0% in World of Energy.
We delivered adjusted operating profit of £590.1m, up 13.0% at constant
currency and 7.1% at actual rates.
The Group's adjusted operating margin was 17.4%, an increase of 100bps from
the prior year at constant exchange rates and 80bps at actual rates.
Net Financing Costs
Adjusted net financing costs were £42.3m, a decrease of £1.6m on 2023
resulting from a combination of lower interest expenses and the impact of
foreign exchange rates. This comprised £2.5m (2023: £3.8m) of finance income
and
£44.8m (2023: £47.7m) of finance expense.
Tax
The adjusted effective tax rate was 24.7%, an increase of 0.1% on the prior
year (2023: 24.6%). The tax charge, including the impact of SDIs, of £122.8m
(2023: £104.2m), equates to an effective rate of 25.1% (2023: 24.7%), the
decrease mainly driven by the geographical mix of profits.
Earnings per share
Adjusted diluted earnings per share at actual exchange rates was 7.9% higher
at 240.6p (2023: 223.0p). Diluted earnings per share after SDIs was 212.7p
(2023: 183.4p) per share and basic earnings per share after SDIs was 214.4p
(2023: 184.4p).
Returns to shareholders
The Board recommends a full year dividend of 156.5p per share, a year on year
increase of 40.1%, reflecting the Group's strong cash generation in 2024 and
the implementation of our new dividend policy based on a payout ratio of
65%.The full year dividend of 156.5p equates to a total cost of £254.2m or c.
65% of adjusted profit attributable to shareholders of the Group for 2024
(2023: £181.2m and 50%). The dividend is covered 1.5 times by earnings (2023:
2.0 times), based on adjusted diluted earnings per share divided by dividend
per share.
The Board today announces an initial share buyback programme to commence
shortly to purchase ordinary shares up to a maximum consideration of £350
million in this financial year. At the 2024 Annual General Meeting
shareholders gave the Company an authority to purchase its own shares. After
careful consideration to the gearing levels, the general financial position of
the Company and on being satisfied that the purchase will increase the
earnings per share of the ordinary share capital in issue and that the
purchase is in the interest of shareholders, the Directors now intend to use
this authority.
Separately Disclosed Items ('SDIs')
A number of items are separately disclosed in the financial statements as
exclusion of these items provides readers with a clear and consistent
presentation of the underlying operating performance of the Group's business.
Reconciliations of the statutory to adjusted measures are provided in the
Presentation of Results section.
When applicable, these SDIs include amortisation of acquisition intangibles;
impairment of goodwill and other assets; the profit or loss on disposals of
businesses or other significant fixed assets; costs of acquiring and
integrating acquisitions; the cost of any fundamental restructuring; the costs
of any significant strategic projects; significant claims and settlements; and
unrealised market or fair value gains or losses on financial assets or
liabilities, including contingent consideration.
Adjusted operating profit excludes the amortisation of acquired intangible
assets, primarily customer relationships, as we do not believe that the
amortisation charge in the income statement provides useful information about
the cash costs of running our business as these assets will be supported and
maintained by the ongoing marketing and promotional expenditure, which is
already reflected in operating costs. Amortisation of software, however, is
included in adjusted operating profit as it is similar in nature to other
capital expenditure. The costs associated with our cost reduction programme
are excluded from adjusted operating profit where they represent changes
associated with operational streamlining, technology upgrades or related asset
write-offs and are costs that are not expected to reoccur. The cost reduction
programme is expected to last up to five years. The impairment of goodwill and
other assets that by their nature or size are not expected to recur, the
profit and loss on disposals of businesses or other significant assets and the
costs associated with successful, active, or aborted acquisitions are excluded
from adjusted operating profit in order to provide useful information
regarding the underlying performance of the Group's operations.
The SDIs charge for 2024 comprises amortisation of acquisition intangibles of
£32.3m (2023: £34.2m); acquisition and integration costs relating to
successful, active, or aborted acquisitions of £2.5m (2023: £8.3m);
significant legal claims of £3.8m (2023: none); and restructuring costs of
£15.8m (2023: £22.4m).
Details of the SDIs for the twelve months ended 31 December 2024 and the
comparative period are given in note 3 to the Condensed Consolidated Financial
Statements.
Acquisitions and investments
In March 2024, the Group acquired Base Metallurgical Laboratories Ltd. and
Base Met Labs Ltd. (jointly "Base Met Labs"), a leading provider of
metallurgical testing services for the Minerals sector based in North
America. Consideration paid was £23.6m, net of cash acquired of £0.3m.
The purchase price includes cash consideration of £14.9m, further contingent
consideration payable of £7.8m and deferred consideration of £0.9m. In 2023,
the Group completed two acquisitions in the year with consideration paid of
£40.5m, net of cash acquired of £3.1m.
The Group invested £135m (2023: £116.9m) organically in laboratory
expansions, new technologies and equipment and other facilities. This
investment represented 4.0% of revenue (2023: 3.5%).
Cash flow
The Group's cash performance was strong with free cash flow of £408.8m (2023:
£378.4m), driven by strong cash conversion, the result of disciplined working
capital management. Adjusted cash flow from operations was £789.2m (2023:
£749.0m). Statutory cash flow from operations was £775.8m (2023: £725.9m).
Net cash flows generated from operating activities were £597.1m (2023:
£535.0m), following lower interest paid during the year and disciplined
working capital management.
Financial position
The Group ended the period in a strong financial position. Financial net debt
was £499.8m, a decrease of £110.8m on 31 December 2023, primarily reflecting
strong cash generation in the business. The undrawn headroom on the Group's
existing committed borrowing facilities at 31 December 2024 was £655.7m
(2023: £664.3m) and cash and cash equivalents were £336.5m (2023: £298.6m).
Total net debt, including the impact of the IFRS 16 lease liability, was
£799.4m (2023: £918.4m).
Our financial guidance for 2025 is that we expect:
• Capital expenditure in the range of £135-145m
• Net finance costs of around £42-44m (pre-buyback and prior to
any material movements in FX or M&A)
• Effective tax rate in the 25-26% range
• Minority interests of between £23m and £24m
• Financial net debt at December 2025 of between £470-520m
(pre-buyback and prior to any material movements in FX or M&A).
Operating Review by Division
To reflect the value creation drivers identified in the Intertek AAA Growth
Strategy, we report our revenue, operating profit and margin in five
divisions: Consumer Products, Corporate Assurance, Health and Safety, Industry
and Infrastructure and World of Energy.
Revenue Adjusted operating profit
2024 2023 Change at actual rates Change at constant rates 2024 2023 Change at actual rates Change at constant rates
£m £m £m £m
Consumer Products 958.8 935.8 2.5% 7.6% 268.7 246.8 8.9% 14.8%
Corporate Assurance 496.3 477.5 3.9% 8.6% 117.2 109.4 7.1% 12.7%
Health and Safety 337.2 326.3 3.3% 9.0% 46.0 43.2 6.5% 13.9%
Industry and Infrastructure 843.6 860.5 (2.0%) 2.4% 80.7 86.1 (6.3%) (1.6%)
World of Energy 757.3 728.6 3.9% 8.0% 77.5 65.6 18.1% 25.4%
Group 3,393.2 3,328.7 1.9% 6.6% 590.1 551.1 7.1% 13.0%
Consumer Products Division
FY2024 FY 2023 Change at actual rates Change at constant rates
£m £m
Revenue 958.8 935.8 2.5% 7.6%
Like-for-like revenue 957.4 931.2 2.8% 8.0%
Adjusted operating profit 268.7 246.8 8.9% 14.8%
Adjusted operating margin 28.0% 26.4% 160bps 170bps
Intertek Value Proposition
Our Consumer Products division focuses on the ATIC solutions we offer to our
clients to develop and sell better, safer, and more sustainable products to
their own clients. This division was 28% of our revenue in 2024 and includes
the following business lines: Softlines, Hardlines, Electrical & Connected
World and Government and Trade Services (GTS). As a trusted partner to the
world's leading retailers, manufacturers and distributors, the division
supports a wide range of industries including textiles, footwear, toys,
hardlines, home appliances, consumer electronics, information and
communication technology, automotive, aerospace, lighting, building products,
industrial and renewable energy products, and healthcare.
Strategy
Our TQA Value Proposition provides a systemic approach to support the Quality
Assurance efforts of our Consumer Products-related customers in each of the
areas of their operations. To do this we leverage our global network of
accredited facilities and world leading technical experts to help our clients
meet high quality, safety, regulatory and brand standards, and develop new
products, materials and technologies, as well as the import of goods in their
markets, based on acceptable quality and safety standards. Ultimately, we
assist them in getting their products to market quickly and safely, to
continually meet evolving consumer demands.
Innovations
We continue to invest in innovation to deliver a superior customer service in
our Consumer Products-related businesses:
Trace For Good Partnership - providing real-time insights into textile
production
Innovative traceability platform empowers brands with real-time insights into
the production journey of textile goods, end-to-end.
What it is: Intertek has partnered with Trace For Good, a SaaS platform aimed
at enhancing traceability and sustainability in complex supply chains,
particularly within the textile industry. The platform helps brands to
effectively manage and communicate the environmental and social impacts of
their products.
Customer benefit: Trace For Good's supply chain traceability and data
management platform, combined with Intertek's global network of experts and
ATIC solutions, will now enable brands and suppliers to collaborate in real
time to track, trace and verify the impact of each product and gain product
sustainability information.
InterLink 2.0 - addressing all Quality Assurance needs on a single platform
InterLink 2.0 is an advanced digital Total Quality Management platform that
helps brands and retailers manage product Quality Assurance in complex
production cycles.
What it is: InterLink provides core features such as online job requests,
report cockpit, report disposition, business intelligence, knowledge library,
communication gateway and product approval. The latest version, InterLink 2.0,
draws on cutting-edge technology to offer an even more user-friendly
experience, enhanced security measures, and sophisticated data analysis
solutions to help customers excel in the marketplace and manage their
end-to-end supply chain needs.
Customer benefit: Combining new interface, digitised certificate data that
supports CPSC's e-Filing, and ready-to-integrate APIs to streamline data
exchange, InterLink 2.0 enables seamless e-Filing experience in a few clicks
and gives customers advanced business intelligence powered by Power BI. It
addresses all Quality Assurance needs on a single platform, offering customers
great value and the convenience of access anytime, anywhere. Harnessing
real-time, data-focused insights gives businesses a competitive edge, while
minimising their supply chain risks. Seamless CPSC e-Filing and quicker lead
times also enhance the product life cycle and help increase speed to market.
Intertek Softlines' iCare - Total Quality in a few clicks
iCare provides clients with a pioneering, industry leading solution that
enables them to seamlessly manage and monitor their testing processes from
start to finish.
What it is: Increasing regulation and heightened consumer expectations are
driving demand among customers in the ATIC space for bespoke, end-to-end
solutions. Intertek Softlines' iCare is an innovative one-stop Science-based
Customer Excellence portal that addresses the transparency and traceability
around the processing and testing of laboratory samples.
Customer benefit: The new portal ensures that our customers can submit test
requests, view reports and analytics online and connect with our in-house
teams of experts in just a few clicks. They can seamlessly manage all their
testing projects in one place, from booking a new test or checking their
project status, to downloading final reports. And with real time status
information and the ability to chat to Intertek's experts online, all within
the portal, iCare means our customers can keep track of their testing whatever
the time of day or night.
Intertek Access - new global regulatory compliance service
Intertek Access is a robust compliance and regulatory information service that
offers our clients an early understanding of the regulatory requirements they
face worldwide.
What it is: Intertek Access harnesses Intertek's extensive worldwide network
of experts to provide tailored market requirements for 65 countries, offering
technical details on electrical safety testing, energy efficiency testing, and
beyond. It supplies manufacturers with everything they need from the initial
concept phase to product development - including up-to-date information on
market requirements, certifications, and regulatory bodies, alongside
customised compliance plans.
Customer benefit: When accessing new and non-traditional markets, companies
require specific expertise in global market regulation to guide their product
development from concept to commercialisation. Our easy-to-use online tool
streamlines diverse regulatory requirements into a single process for
accessing multiple markets. For more customised service, an Intertek expert
can create a market testing requirements report, known as an Access Passport,
specific to a company's product category and desired countries. They then
guide users through the step-by-step process of bringing a product to market,
covering the research and innovation stage to prototype, market launch and
production, through to ongoing product compliance via standards and regulatory
updates.
FY 2024 Performance
In FY 2024, our Consumer Products-related business delivered a revenue of
£958.8m, up year on year by 7.6% at constant currency and 2.5% year on year
at actual rates. We delivered an adjusted operating profit of £268.7m, up 15%
year on year at constant currency and up 9% year on year at actual rates
resulting in an adjusted operating margin of 28.0%, an increase of 170bps year
on year at constant currency.
· Our Softlines business delivered double-digit LFL revenue growth as
we have seen an increase in ATIC investments by our clients in e-commerce,
Risk-based Quality Assurance, end-to-end sustainability and in new products.
· Hardlines reported a mid-single digit LFL revenue performance as we
are benefitting from ATIC investments by our clients in e-commerce,
sustainability and new product development.
· With increased ATIC activities driven by greater regulatory standards
in energy efficiency, more demand for medical devices and 5G investments, our
Electrical & Connected World business delivered high-single digit LFL
revenue growth.
· Our Government & Trade Services business provides certification
services to governments in the Middle East and Africa to facilitate the import
of goods in their markets, based on acceptable quality and safety standards.
The business reported low-single digit LFL revenue growth in the period.
2025 growth outlook
We expect our Consumer Products division to deliver mid-single digit LFL
revenue growth at constant currency.
Mid to long-term growth outlook
Our Consumer Products division will benefit from growth in new brands, SKUs
& ecommerce, increased regulation, a greater focus on sustainability and
technology, as well as a growing middle class. Our mid to long-term guidance
for Consumer Products is low to mid-single digit LFL revenue growth at
constant currency.
Corporate Assurance Division
FY 2024 £m FY 2023 £m Change at actual rates Change at constant rates
496.3 477.5 3.9% 8.6%
Revenue
Like-for-like revenue 492.4 477.5 3.1% 7.8%
Adjusted operating profit 117.2 109.4 7.1% 12.7%
Adjusted operating margin 23.6% 22.9% 70bps 80bps
Intertek Value Proposition
Our Corporate Assurance division focuses on the industry agnostic assurance
solutions we offer to our clients to make their value chains more sustainable
and more resilient end-to-end. This division was 15% of our revenue in 2024
and includes Business Assurance and Assuris.
Strategy
Business Assurance and Assuris are central to our ATIC offering and are some
of the most exciting businesses within Intertek, given the increased focus on
operational risk management within the value chain of every company. Intertek
Business Assurance provides a full range of business process audit and support
services, including accredited third-party management systems auditing and
certification, second-party supplier auditing and supply chain solutions,
sustainability data verification, process performance analysis and training.
Assuris' global network of experts provides a global network of scientists,
engineers, and regulatory specialists to provide support to navigate complex
scientific, regulatory, environmental, health, safety, and quality challenges
throughout the value chain of our clients.
Innovations
We continue to invest in ATIC innovations to deliver a superior customer
service in our Corporate Assurance related businesses:
Intertek Inform - offering seamless access to standards
Intertek Inform uses market-leading technology to provide companies with
standards and regulatory solutions to facilitate faster market access.
What it is: Intertek Inform (formerly known as Intertek SAI Global Standards)
provides up-to-date standards, transparent pricing, and real-time alerts when
standards change. With a vast library of 1.6 million standards from over 360
publishers, such as ISO, ASTM, ASME, BSI, and Standards Australia, our
digital, centralised platform offers tailored access to the information
customers need, when they need it, helping them get their products to market
faster. Users also receive alerts that provide an up-to-date summary of all
the standards on their Intertek Inform watchlist.
Customer benefit: Meeting the right internationally recognised standards is
critical to the ongoing success of our customers in both established and new
markets. To ensure we offer them seamless access to our library of standards,
the Intertek Inform Technology Team has now launched a mobile app as part of
our Standards Management Solution i2i. This i2i mobile app allows customers to
download their essential standards to access them anytime, even without an
internet connection. They can also log into their accounts with just one set
of credentials, using a convenient single sign-on (SSO) that streamlines their
login experience and enhances the platform's security.
Intertek Alchemy Engage Conference 2024
The 14th Intertek Alchemy Engage Conference, hosted in Austin, Texas, brought
together more than 300 employee engagement and development leaders to "learn,
connect and grow".
What it is: Intertek Alchemy is dedicated to helping the industry grow by
engaging, developing, and retaining its workforce. Our Engage Conference
serves as an ideal forum to meet new people, share our initiatives, listen to
feedback, and explore common problems in the industry that may drive
innovations that address evolving needs. The 2024 event featured best practice
sessions, networking opportunities, and a forward-looking focus aimed at
building safe and productive cultures within the manufacturing, processing,
packaging, and distribution industries. Attendees also explored how to further
their business growth at the Alchemy Showcase, where they received a firsthand
look at all of Intertek Alchemy's training solutions and consulting services.
Customer benefit: The conference kicked off with leaders from Intertek Alchemy
sharing trends, advancements, and insights under the theme of "People Make the
Difference". Our innovation team was delighted to showcase newly released
training courses on leadership, warehouse, and workplace harassment topics, as
well as course libraries translated into Haitian Creole. They also previewed
upcoming courses on workplace safety, maintenance, and employee well-being
topics, as well as sharing their focus on developing technology that will
streamline course creation and translations, allowing for training in multiple
languages simultaneously, and enhancing our business intelligence tools.
Supporting EUDR compliance for key commodities
Intertek's solutions for EU Deforestation Regulation ('EUDR') compliance are
more than just a reaction to customer needs, they are a testament to our
pioneering innovation in sustainability.
What it is: To help companies prepare for the EUDR legislation that will come
into force on 30 December 2025, we have introduced a comprehensive suite of
solutions. EUDR impacts the import and export of seven key commodities - wood,
rubber, cocoa, coffee, cattle, soy, and palm oil - within the European market.
Non-compliance may lead to penalties up to 4% of EU revenue and market
exclusion. Our support spans from the farmer to the end-consumer, ensuring
that the path to compliance is seamless, effective, and geared towards a
sustainable, deforestation-free future.
Customer benefit: Our aim is to help customers act to preserve our natural
resources, while safeguarding their market position. We help them navigate the
intricate regulatory requirements they face with confidence and precision. Our
comprehensive solutions support every aspect of their compliance journey,
providing guidance on regulations, training, and services that cover risk
assessment, mitigation, audits and verification.
FY 2024 Performance
In FY 2024, our Corporate Assurance-related business reported revenue of
£496.3m, LFL revenue growth of 7.8% at constant currency and up year on year
by 8.6% at constant currency and 3.9% at actual rates. We delivered adjusted
operating profit of £117.2m, up 13% year on year at constant currency and 7%
year on year at actual rates with an adjusted operating margin of 23.6%, an
increase of 80bps year on year at constant currency.
• Business Assurance delivered high-single digit LFL revenue growth
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 mid-single digit LFL revenue
performance as we continue to benefit from improved demand for our regulatory
assurance solutions and from increased corporate investment in ESG.
2025 growth outlook
We expect our Corporate Assurance division to deliver high-single digit LFL
revenue growth at constant currency.
Medium- to long-term growth outlook
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. Our mid to
long-term guidance for Corporate Assurance is high-single digit to
double-digit LFL revenue growth at constant currency.
Health and Safety Division
FY 2024 £m FY 2023 £m Change at actual rates Change at constant rates
Revenue 337.2 326.3 3.3% 9.0%
Like-for-like revenue 333.8 326.3 2.3% 7.9%
Adjusted operating profit 46.0 43.2 6.5% 13.9%
Adjusted operating margin 13.6% 13.2% 40bps 50bps
Intertek Value Proposition
Our Health and Safety division focuses on the ATIC solutions we offer to our
clients to make sure we all enjoy a healthier and safer life. This division
was 10% of our revenue in 2024 and includes our AgriWorld, Food, and Chemicals
& Pharma business lines.
Strategy
Our TQA value proposition provides our Health and Safety-related customers
with a systemic, end-to-end ATIC offering at every stage of the supply chain.
In an industry with significant structural growth drivers, our science-based
approach supports clients as the sustained demand for food safety testing
activities increases along with higher demand for hygiene and safety audits in
factories. Our longstanding experience and expertise in the Chemicals and
Pharma industries enables clients to mitigate risks associated with product
quality and safety and processes, supporting them with their product
development, regulatory authorisation, chemical testing and production.
Innovations
We continue to invest in innovation to deliver a superior customer service in
our Health and Safety related businesses:
Intertek HoneyTrace - traceability from hive to jar
Complete transparency of honey's journey from hive to jar, tracking each batch
as it moves from beekeeper to exporter, importer and packer.
What it is: Intertek Food Services has launched HoneyTrace, an innovative
traceability solution for the honey industry, designed to protect the
integrity of the honey supply chain. Built using blockchain technology and
backed by our extensive honey testing expertise, the secure platform can track
the identity and location of beekeepers, store laboratory test results, and
monitor batches throughout the supply chain. It provides complete transparency
of honey's journey from hive to jar, minimising opportunities for adulteration
- the deliberate modification of honey, such as adding sugars, syrups, or
colours, or falsifying the product's origin to enhance its value or
appearance.
Customer benefit: Despite its reputation as a pure and natural product, honey
ranks among the most tampered-with foods on the planet, with an estimated 14%
of honey sold worldwide being either fake or mixed with other substances. Our
powerful new solution helps honey professionals meet regulatory requirements
while also safeguarding consumers and building trust through unparalleled
traceability and accountability. The level of transparency HoneyTrace provides
is critical in light of recent EU regulatory changes, which mandate specific
origin information on honey packaging and encourage the use of traceability
systems to validate that information.
Third Annual Inhaled & Nasal Biologics DNA Forum
For the third year, Intertek's UK Pharma team hosted this conference in
Cambridge spanning two days of cutting-edge discussions and networking
opportunities with leaders in this complex area of drug and vaccine
development. This industry-leading event is a valuable forum to explore the
latest research and best practices in pulmonary and intranasal biologic and
DNA drug development.
A variety of companies and academic institutions shared their insights and
practical case studies, while expert speakers delved into innovative
formulation and delivery technologies and the reasoning behind overcoming
developmental challenges. Over the past decade, biologics and nucleotide-based
therapies have become increasingly important. Delivering these treatments via
the lungs and nasal cavity offers a promising, non-invasive alternative to
traditional parenteral methods, with potential benefits for both localised
respiratory and systemic treatments across various diseases and conditions.
However, the administration of biologics, mRNA, and nucleotide-based therapies
and vaccines through respiratory routes presents unique challenges. Developers
must carefully balance product performance, manufacturability, regulatory
considerations, and commercial factors to create effective solutions.
Hosting this annual forum highlights Intertek's commitment to supporting the
advancement of science and innovation in the field of inhaled and nasal
biologics, DNA therapeutics and vaccine development. Furthermore, ongoing
partnership with the Academy of Pharmaceutical Science ensures that the
conference continues to be independently science-led and accessible to a wide,
diverse audience, whilst enabling education, conversation and collaboration in
this complex and evolving area of drug development.
FY 2024 Performance
In FY 2024, our Health and Safety-related business delivered LFL revenue
growth of 7.9% at constant currency to £337.2m, a year on year increase of
9.0% at constant currency and 3.3% at actual rates. Adjusted operating profit
was £46.0m, up 14% year on year at constant currency and 6.5% at actual
rates. Adjusted operating margin was 13.6%, an improvement of 50bps year on
year at constant currency.
• AgriWorld provides inspection activities to ensure that the global
food supply chain operates fully and safely. The business reported high-single
digit LFL revenue growth as we continue to see an increase in demand for
inspection activities driven by sustained growth in the global food industry.
• Our Food business registered double-digit LFL revenue growth as we
continue to benefit from higher demand for food safety testing activities as
well as hygiene and safety audits in factories.
• In Chemicals & Pharma we saw mid-single digit LFL revenue
growth, reflecting improved demand for regulatory assurance and chemical
testing and from the increased R&D investments of the pharma industry.
2025 growth outlook
We expect our Health and Safety division to deliver mid-single digit LFL
revenue growth.
Medium- to long-term growth outlook
Our Health and Safety division will benefit from the demand for healthier and
more sustainable food to support a growing, global population, increased
regulation, and new R&D investments in the pharma industry. Our mid to
long-term guidance for our Health and Safety division is mid to high-single
digit LFL revenue growth at constant currency.
Industry and Infrastructure Division
FY 2024 £m FY 2023 £m Change at actual rates Change at constant rates
Revenue 843.6 860.5 (2.0%) 2.4%
Like-for-like revenue 837.9 860.5 (2.6%) 1.7%
Adjusted operating profit 80.7 86.1 (6.3%) (1.6%)
Adjusted operating margin 9.6% 10.0% (40bps) (40bps)
Intertek Value Proposition
Our Industry and Infrastructure division focuses on the ATIC solutions our
clients need to develop and build better, safer and greener infrastructure.
This division was 25% of our revenue in 2024 and includes Industry Services,
Minerals and Building & Construction.
Strategy
Our TQA value proposition helps our customers to mitigate the risks associated
with technical failure or delay, ensuring that their projects proceed on time
and meet the highest quality standards as demand for more environmentally
friendly buildings and infrastructure grows. By helping to improve safety
conditions and reduce commercial risk, our broad range of assurance, testing,
inspection, certification and engineering services allows us to assist clients
in protecting both the quantity and quality of their mined and drilled
products.
Innovations
We continue to invest in innovation to deliver a superior customer service in
our Industry and Infrastructure-related businesses:
Intertek Metoc - delivering across the entire lifecycle of a project
With a history spanning over four decades, the Intertek Metoc brand was
renewed in 2024, highlighting the pioneering energy, industry expertise and
end-to-end solutions offered by our diverse team.
Across sectors such as wind, wave, tidal energy, subsea cable, water, and oil
& gas, Intertek Metoc's multi-disciplinary team operates at the critical
interface where engineering design and asset operation meet environmental
limitations. This enables us to help clients achieve compliance, reduce costs,
and manage risks, all while advancing their journey toward net zero emissions.
Our team of consultants, scientists, engineers, and regulatory experts
provides assurance and consultancy solutions from the outset, laying a solid
groundwork for safe, economical, and sustainable projects. Whether we are
identifying the best subsea cable route from an environmental or engineering
standpoint or developing environmental modelling scenarios to meet water
quality goals and engineering cost savings, our experts support early project
planning and development by delivering essential assessments for stakeholder
engagement and project viability.
Our clients gain access to a wide range of expert technical knowledge, while
benefitting from the environmental consulting and advisory services they need
to secure necessary permits, minimise risks, and streamline costs and
scheduling. They also receive expert guidance on changing regulatory demands
and effective stakeholder engagement, with the assurance that their
engineering designs and asset operations are safe, reliable, and of the
highest quality.
Intertek Methane Clear - providing accurate and independent measurement and
verification
Our Science-based Customer Excellence programme moving Energy companies Faster
to Net Zero.
What it is: Intertek Methane Clear is our programme that provides energy
companies with accurate and independent measurement and verification for the
reporting of methane emissions, supporting compliance with local regulatory
regimes and methane emissions reporting. The reporting of methane emissions is
moving from being a voluntary to a mandated regulatory requirement in major
jurisdictions like the EU, USA, UK, and Canada, who have been finalising their
regulations. Reporting of these emissions needs to be accurately baselined and
monitored, and Methane Clear is designed to help emitters work towards the Oil
& Gas Methane Partnership 2.0 (OGMP) standard level of measurement,
reporting and verification (MRV).
Customer benefit: Through a suite of science-based solutions that range from
direct measurement using aerial drones and fixed sensors, to inspection and
testing, emissions data management and analysis, and mitigation consulting,
Methane Clear enables companies to effectively reduce emissions levels and
build resilience into their value chains, creating market trust and
transparency for compliance with regulations.
Supporting our customers' investments in healthy building
Our Building & Construction ('B&C') team unveiled a range of
innovative Healthy Building Solutions this year, including a series of videos
that showcase the resources we offer.
What it is: Our B&C team has launched a comprehensive range of Healthy
Building Solutions that address occupant health and wellbeing, focusing on
four key areas that cover resilience, sustainability, health and acoustics. To
complement the information, which is available on our Healthy Buildings web
pages, the B&C team has also created a series of online videos to showcase
our solutions, in which our experts delve into these four key areas and help
bring them to life for our customers.
Customer benefit: We support customers' investments in healthier buildings,
creating spaces that enhance human health, wellbeing and productivity, while
addressing environmental and economic sustainability. Our Property Resilience
Assessments (PRAs) take a close look at their entire building and site, from
the roof to the foundation, inside and out. LEED® Certification for
Sustainable Buildings certifies that our customers' building projects meet the
rigorous sustainability standards established by the U.S. Green Building
Council. WELL Certification for healthier spaces demonstrates that a building
supports the health and wellbeing of its occupants based on measurable
criteria.
FY 2024 Performance
Our Industry and Infrastructure-related business reported LFL revenue growth
of 1.7% at constant currency and we delivered revenue of £843.6m in FY 2024,
up year on year by 2.4% at constant currency and down 2.0% at actual rates.
Adjusted operating profit of £80.7m, was down circa 2% at constant currency
and down 6% year on year at actual rates. Adjusted operating margin was
9.6%, 40bps lower year on year at constant currency.
• Industry Services, which includes our Capex Inspection services
and Opex Maintenance services, delivered mid-single digit LFL revenue growth.
We benefitted from increased capex investment in traditional Oil and Gas
exploration and production as well as in renewables, enabling our Moody
division in H2 to deliver double-digit LFL revenue growth despite severe
weather disruption in the USA. Double-digit LFL revenue growth in our Moody
business was partially offset by a negative LFL revenue performance in our
Opex business, due to the exit of non-profitable contracts.
• Our Minerals business delivered mid-single digit LFL revenue
growth as we continue to benefit from the robust demand for testing and
inspection activities in our key markets.
• We continue to see growing demand for more environmentally
friendly buildings and the increased number of infrastructure projects being
planned in our Building & Construction business in North America. We
reported a low-single digit negative LFL revenue growth as our business was
impacted by a temporary slow-down of investments in large construction
projects and severe weather disruptions in the USA in H2.
2025 growth outlook
We expect our Industry and Infrastructure division to deliver mid-single digit
LFL revenue growth at constant currency.
Medium- to long-term growth outlook
Our Industry and Infrastructure division will benefit from increased
investment from energy companies to meet growing demand and consumption of
energy from the growing global population, the scaling up of renewables,
increased R&D investments that OEMs are making in EV/hybrid vehicles and
from the development of greener fuels. We expect mid to high-single digit LFL
revenue growth in the medium-term at constant currency.
World of Energy Division
FY 2024 £m FY 2023 £m Change at actual rates Change at constant rates
Revenue 757.3 728.6 3.9% 8.0%
Like-for-like revenue 757.3 728.6 3.9% 8.0%
Adjusted operating profit 77.5 65.6 18.1% 25.4%
Adjusted operating margin 10.2% 9.0% 120bps 140bps
Intertek Value Proposition
Our World of Energy division focuses on the ATIC solutions we offer to our
clients to develop better and greener fuels as well as renewables. This
division was 22% of our revenue in 2024 and includes Intertek Caleb Brett,
Transportation Technologies (TT) and Clean Energy Associates (CEA).
Strategy
Our TQA Value Proposition provides world leading expertise to enable our
clients to benefit from the significant opportunities in the World of Energy.
We do this by providing specialist cargo inspection, analytical assessment,
calibration and related research and technical services to the world's
petroleum and biofuels industries.
We provide rapid testing and validation services to the transportation
industry, leveraging our Transportation Technologies subject matter expertise
that is recognised by leading manufacturers worldwide. We evaluate everything
from automobiles and energy storage to airplanes, and deliver top tier testing
for emerging markets, such as autonomous and electric/hybrid vehicles.
Clean Energy Associates (CEA) is a market-leading provider of Quality
Assurance, supply-chain traceability and technical services to the
fast-growing solar energy sector. Its leading assurance service offering
includes in-line monitoring that allows clients to oversee the management and
traceability of their supply chains, offering a comprehensive, end-to-end
service to support customers on their decarbonisation and energy
sustainability journeys.
Innovations
We continue to invest in innovation to deliver a superior customer service in
our World of Energy related businesses:
Intertek Caleb Brett - expanding industry-leading testing capabilities
Intertek Caleb Brett has been a pioneer in the field of global, professional,
and reliable bulk commodity inspection for more than a century. As part of our
commitment to providing unparalleled quantity and quality services, we have
expanded our capabilities and laboratory footprint in 2024.
Our new Georgetown, Guyana laboratory is equipped with the latest technology
and staffed by a team of highly trained and experienced Intertek experts. It
offers comprehensive fuel testing services, conducted with the utmost accuracy
and adherence to international standards, providing clients with the
confidence and assurance they need in their fuel products. Guyana has emerged
as a significant player in the global energy market. By bringing testing
capabilities closer to home, Intertek is helping to streamline operations for
local businesses in Guyana and across the Caribbean region and reduce
turnaround times. This supports the overall growth, development and
competitiveness of the region's energy sector, while creating new job
opportunities in the community and nurturing local talent.
Positioned at the crossroads of major global shipping routes, Algeciras,
Spain, is a strategic maritime hub in Europe. Establishing a new fuel testing
laboratory here allows Intertek Caleb Brett to offer immediate access to
essential fuel and marine gasoil testing and inspection services. These
services include cargo inspection, fuel quantity surveys, sampling and
blending, gauging, stock monitoring, tank calibration, marine fuels testing
for ISO 8217 compliance, and aromatics content analysis. Staffed by a team of
highly skilled scientists and technicians with decades of experience in fuel
analysis and marine operations, the laboratory uses cutting-edge technology,
such as advanced gas chromatography and mass spectrometry instruments. All
this strengthens our position as a pioneer in various services critical to the
maritime and energy sectors in the region, while helping businesses comply
with international environmental and fuel standards and avoid costly delays.
Intertek Caleb Brett has made significant investments to upgrade its New
Plymouth, New Zealand laboratory's testing capabilities. It now offers full
specification analysis of animal fats and used cooking oils, making it the
only laboratory in New Zealand capable of providing comprehensive testing of
these key materials in the production of biofuels. This is vital for
maintaining strict quality control and ensuring biofuel production complies
with stringent global standards. Expanding our testing capabilities not only
supports the transition to more sustainable energy sources but also
strengthens New Zealand's position in the global renewable energy market. We
are proud to be at the forefront of this important shift. By providing
advanced testing, inspection, and certification services, Intertek Caleb Brett
is committed to supporting the renewable energy transition and ensuring that
the highest standards of quality and precision are met.
Intertek Caleb Brett's new lab in O'ahu, Hawaii is equipped with all the
state-of-the-art technology required to assess the key parameters essential to
jet fuel safety, reliability, and performance. Strategically situated, our
experts offer a wide array of testing services that cover chemical
composition, physical properties, environmental considerations, and overall
performance metrics, aligning with the stringent ASTM D1655 specification, a
global standard for quality. Our comprehensive evaluations monitor factors
such as acidity, sulphur content, distillation properties, flash point and API
gravity/density. By conducting these detailed analyses, Intertek Caleb Brett
not only ensures compliance with industry standards but also significantly
contributes to enhancing the safety and operational efficiency of the aviation
industry in Hawaii and worldwide.
Intertek Caleb Brett Analytical Stockpile Assessment - redefining precision in
bulk material measurement
Intertek Caleb Brett's Analytical Stockpile Assessment ('ASA') is a patented,
cutting-edge solution that supports client initiatives by redefining how bulk
materials are measured and valued.
What it is: Intertek Caleb Brett employs a scientifically proven method that
segments stockpiles into layers, allowing for detailed and reliable analysis.
Our ASA technology guarantees top-tier accuracy with a remarkable ±1.8%
variance in stockpile tonnage, far surpassing results produced using
traditional methods. The technology is patented in Australia, United States,
United Kingdom, France, Germany, Italy, Poland, Portugal, Spain, Türkiye,
India and South Africa, with a patent application pending in Brazil.
Customer benefit: Our innovative ASA service offers customers unmatched
precision in estimating the weight and financial value of their stockpiles
across various sectors, including grains and sugar, fertilisers, mineral
concentrates, coal, petroleum coke, and cement. We can provide unparalleled
accuracy and confidence in managing these stockpiles, delivering substantial
benefits to raw materials managers, financial auditors, and buyers - such as
reducing financial risks, improving operational efficiency, and enabling them
to make more informed business decisions.
Clean Energy Associates - providing market intelligence
A comprehensive understanding of global supply, technology, pricing, and
policy for the photovoltaic, energy storage, and green hydrogen sectors.
What it is: Clean Energy Associates ('CEA') provides tailored solutions,
supplying comprehensive knowledge on global supply, technology advancements,
pricing trends, policy and regulation developments in the solar power, energy
storage, and green hydrogen sectors. We offer our customers Market
Intelligence insights into suppliers and industry dynamics typically only
available to genuine insiders, delivered through our Syndicated Reports,
Executive Business Reviews, and Bespoke Consulting Services.
Customer benefit: Staying ahead in the evolving landscape of the clean energy
market is difficult due to its complexity and geopolitical shifts that can
disrupt supply chains. Our Market Intelligence services ensure that customers
are not just keeping pace with the changes, but they are strategically
positioned to capitalise on them. This ensures that they stay informed and
adaptable, equipped with the most accurate information to help them make
progress in their decarbonisation journey. It also helps them tackle supplier
negotiations, project planning, site management, and investment choices with
assured confidence, supported by comprehensive data and analysis.
FY 2024 performance
FY 2024 saw our World of Energy-related business report revenue of £757.3m, a
LFL revenue increase of 8.0% at constant currency and year on year growth of
8.0% at constant currency and 3.9% at actual rates. Adjusted operating profit
was £77.5m, up 25% year on year at constant currency and 18% at actual
rates. Adjusted operating margin of 10.2% is ahead 140bps year on year at
constant currency.
• Intertek Caleb Brett, the global leader in the Crude Oil and
Refined products global trading markets, benefitted from robust momentum
reflecting increased global mobility and higher testing activities for
biofuels and delivered high-single digit LFL revenue growth.
• Transportation Technologies delivered high-single digit LFL
revenue growth, driven by increased investment in new powertrains to lower
CO2/NOx emissions and in traditional combustion engines to improve fuel
efficiency.
• Our CEA business reported double-digit LFL revenue growth as we
continue to benefit from the increased investments in solar panels which is
the fastest growing form of renewable energy.
2025 growth outlook
We expect our World of Energy division to deliver mid-single digit LFL revenue
growth at constant currency.
Medium- to long-term growth outlook
Our World of Energy division will benefit from increased investment from
energy companies to meet growing demand and consumption of energy from the
growing global population, the scaling up of renewables, increased R&D
investments that OEMs are making in EV/hybrid vehicles and from the
development of greener fuels. Our mid to long-term LFL guidance at constant
currency for the World of Energy division is low to mid-single digit revenue
growth.
Presentation of Results
For the year ended 31 December 2024
Adjusted results
To present the performance of the Group in a clear, consistent and comparable
format, certain items are disclosed separately on the face of the income
statement. These items, which are described in the Presentation of Results
section of this report and in note 3, are excluded from the adjusted results.
The figures discussed in this review (extracted from the income statement and
cash flow) are presented before Separately Disclosed Items (SDIs).
Like-for-Like revenue
LFL revenue includes acquisitions following their 12-month anniversary of
ownership and excludes the historical contribution of any business disposals
and closures.
Constant exchange rates
In order to remove the impact of currency translation from our growth figures
we present revenue and profit growth at constant exchange rates. This is
calculated by translating 2023 results at 2024 exchange rates.
Separately Disclosed Items
A number of items are separately disclosed in the financial statements as
exclusion of these items provides readers with a clear and consistent
presentation of the underlying operating performance of the Group's business.
Reconciliations of the statutory to adjusted measures are provided in the
Presentation of Results section.
When applicable, these SDIs include amortisation of acquisition intangibles;
impairment of goodwill and other assets; the profit or loss on disposals of
businesses or other significant fixed assets; costs of acquiring and
integrating acquisitions; the cost of any fundamental restructuring; the costs
of any significant strategic projects; material claims and settlements; and
unrealised market or fair value gains or losses on financial assets or
liabilities, including contingent consideration.
Adjusted operating profit excludes the amortisation of acquired intangible
assets, primarily customer relationships, as we do not believe that the
amortisation charge in the income statement provides useful information about
the cash costs of running our business as these assets will be supported and
maintained by the ongoing marketing and promotional expenditure, which is
already reflected in operating costs. Amortisation of software, however, is
included in adjusted operating profit as it is similar in nature to other
capital expenditure. The costs associated with our cost reduction programme
are excluded from adjusted operating profit where they represent changes
associated with operational streamlining, technology upgrades or related asset
write-offs and are costs that are not expected to reoccur. The cost reduction
programme is expected to last up to five years. The impairment of goodwill and
other assets that by their nature or size are not expected to recur, the
profit and loss on disposals of businesses or other significant assets and the
costs associated with successful, active, or aborted acquisitions are excluded
from adjusted operating profit in order to provide useful information
regarding the underlying performance of the Group's operations.
Details of the SDIs for the twelve months ended 31 December 2024 and the
comparative period are given in note 3 to the Condensed Consolidated Financial
Statements.
Reconciliation of Results to Adjusted Performance Measures (£m)
2024 2024 2024 2023 2023 2023
Reported SDIs Adjusted Reported SDIs Adjusted
Operating profit 535.7 54.4 590.1 486.2 64.9 551.1
Operating margin 15.8% 1.6% 17.4% 14.6% 2.0% 16.6%
Net financing costs (45.7) 3.4 (42.3) (63.9) 20.0 (43.9)
Profit before tax 490.0 57.8 547.8 422.3 84.9 507.2
Income tax expense (122.8) (12.4) (135.2) (104.2) (20.6) (124.8)
Profit for the year 367.2 45.4 412.6 318.1 64.3 382.4
Cash flow from operations 775.8 13.4 789.2 725.9 23.1 749.0
Cash flow from operations less net capex 645.8 13.4 659.2 620.5 23.1 643.6
Free cash flow 395.4 13.4 408.8 355.3 23.1 378.4
Basic earnings per share 214.4p 28.2p 242.6p 184.4p 39.8p 224.2p
Diluted earnings per share 212.7p 27.9p 240.6p 183.4p 39.6p 223.0p
2024 2023 Change
Reconciliation of revenue £m £m %
Reported revenue 3,393.2 3,328.7 1.9
Less: Acquisitions / disposals / closures (14.4) (4.6)
Like-for-like revenue 3,378.8 3,324.1 1.6
Impact of foreign exchange movements - (146.0)
Like-for-like revenue at constant currency 3,378.8 3,178.1 6.3
Reconciliation of financial net debt for adjusted EBITDA (£m)
2024 2023
Net debt (799.4) (918.4)
IFRS 16 lease liability 299.6 307.8
Net financial debt (499.8) (610.6)
Reported operating profit 535.7 486.2
Depreciation 144.4 156.0
Amortisation 17.3 19.3
EBITDA 697.4 661.5
SDIs 54.4 64.9
Adjusted EBITDA 751.8 726.4
Net financial debt / adjusted EBITDA 0.7x 0.8x
2024 2023 Change
Constant currency reconciliations £m £m %
Adjusted operating profit at actual rates 590.1 551.1 7.1
Impact of foreign exchange movements - (28.9)
Adjusted operating profit at constant rates 590.1 522.2 13.0
Adjusted diluted EPS at actual rates 240.6p 223.0p 7.9
Impact of foreign exchange movements - (14.1)p
Adjusted diluted EPS at constant rates 240.6p 208.9p 15.2
Diluted EPS at actual rates 212.7p 183.4p 16.0
Impact of foreign exchange movements - (14.3)p
Diluted EPS at constant rates 212.7p 169.1p 25.8
Full Year Report
If you require a printed copy of this statement, please contact the Group
Company Secretary. This statement is also available on www.intertek.com
(http://www.intertek.com/) . (http://www.intertek.com/)
Legal Notice
This Full Year Report and announcement contain certain forward-looking
statements with respect to the financial condition, results, operations and
business of Intertek Group plc. These statements and forecasts involve risk
and uncertainty because they relate to events and depend upon circumstances
that will occur in the future. There are a number of factors that could cause
actual results or developments to differ materially from those expressed or
implied by these forward-looking statements and forecasts. Nothing in this
announcement should be construed as a profit forecast. Past performance cannot
be relied upon as a guide to future performance.
Condensed Consolidated Income Statement
For the year ended 31 December 2024
2024 2023
Adjusted Results Separately Disclosed Items* Total 2024 Adjusted results Separately Disclosed Items* Total 2023
Notes £m £m £m £m £m £m
Revenue 2 3,393.2 - 3,393.2 3,328.7 - 3,328.7
Operating costs (2,803.1) (54.4) (2,857.5) (2,777.6) (64.9) (2,842.5)
Group operating profit/(loss) 2 590.1 (54.4) 535.7 551.1 (64.9) 486.2
Finance income 2.5 - 2.5 3.8 - 3.8
Finance expense (44.8) (3.4) (48.2) (47.7) (20.0) (67.7)
Net financing costs (42.3) (3.4) (45.7) (43.9) (20.0) (63.9)
Profit/(loss) before income tax 547.8 (57.8) 490.0 507.2 (84.9) 422.3
Income tax (expense)/credit (135.2) 12.4 (122.8) (124.8) 20.6 (104.2)
Profit/(loss) for the year 2 412.6 (45.4) 367.2 382.4 (64.3) 318.1
Attributable to:
Equity holders of the Company 390.8 (45.4) 345.4 361.7 (64.3) 297.4
Non-controlling interest 21.8 - 21.8 20.7 - 20.7
Profit/(loss) for the year 412.6 (45.4) 367.2 382.4 (64.3) 318.1
Earnings per share
Basic 4 242.6p 214.4p 224.2p 184.4p
Diluted 4 240.6p 212.7p 223.0p 183.4p
Dividends in respect of the year 156.5p 111.7p
* See note 3.
Condensed Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
2024 2023
Notes £m £m
Profit for the year 2 367.2 318.1
Other comprehensive income/ (expense)
Remeasurements on defined benefit pension schemes 5 3.7 (2.6)
Tax on comprehensive income/(expense) items 6.0 3.0
Items that will never be reclassified to profit or loss 9.7 0.4
Foreign exchange translation differences of foreign operations (64.8) (147.1)
Net exchange gain/(loss) on hedges of net investments in foreign operations 1.7 58.8
Loss on fair value of cash flow hedges - (0.1)
Items that are or may be reclassified subsequently to profit or loss (63.1) (88.4)
Total other comprehensive income/ (expense) for the year (53.4) (88.0)
Total comprehensive income for the year 313.8 230.1
Total comprehensive income for the period attributable to:
Equity holders of the Company 291.4 211.6
Non-controlling interest 22.4 18.5
Total comprehensive income for the year 313.8 230.1
Condensed Consolidated Statement of Financial Position
As at 31 December 2024
Notes 2024 2023
£m £m
Assets
Property, plant and equipment 8 692.8 669.6
Goodwill 7 1,365.9 1,385.8
Other intangible assets 304.2 330.9
Trade and other receivables 15.4 21.8
Defined benefit pension asset 5 27.2 21.8
Deferred tax assets 34.5 36.4
Total non-current assets 2,440.0 2,466.3
Inventories* 19.0 17.2
Trade and other receivables* 754.9 725.1
Cash and cash equivalents 6 343.0 299.3
Current tax receivable 42.4 30.0
Total current assets 1,159.3 1,071.6
Total assets 3,599.3 3,537.9
Liabilities
Interest bearing loans and borrowings 6 (101.3) (97.5)
Current taxes payable (67.2) (60.5)
Lease liabilities (70.1) (69.9)
Trade and other payables* (757.6) (735.6)
Provisions* (53.9) (18.0)
Total current liabilities (1,050.1) (981.5)
Interest bearing loans and borrowings 6 (741.5) (812.4)
Lease liabilities (229.5) (237.9)
Deferred tax liabilities (69.9) (75.3)
Defined benefit pension liabilities 5 (5.2) (4.8)
Other payables* (49.8) (30.1)
Provisions* (8.4) (35.8)
Total non-current liabilities (1,104.3) (1,196.3)
Total liabilities (2,154.4) (2,177.8)
Net assets 1,444.9 1,360.1
Equity
Share capital 1.6 1.6
Share premium 257.8 257.8
Other reserves (191.2) (127.5)
Retained earnings 1,333.7 1,191.5
Total equity attributable to equity holders of the Company 1,401.9 1,323.4
Non-controlling interest 43.0 36.7
Total equity 1,444.9 1,360.1
* Working capital of negative £95.9m (2023: negative £78.8m) comprises the
asterisked items in the above Statement of Financial Position less IFRS16
lease receivable of £0.1m (2023: £1.6m).
Condensed Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Attributable to equity holders of the Company
Other Reserves
Share capital Share premium Translation reserve Other Retained earnings Total before non- controlling interest Non- controlling interest Total equity
£m £m £m £m £m £m £m £m
At 1 January 2023
Total comprehensive income/(expense) 1.6 257.8 (47.7) 6.4 1,065.9 1,284.0 34.0 1,318.0
for the period
Profit - - - - 297.4 297.4 20.7 318.1
Other comprehensive income - - (86.1) (0.1) 0.4 (85.8) (2.2) (88.0)
Total comprehensive income - - (86.1) (0.1) 297.8 211.6 18.5 230.1
for the year
Transactions with owners of the company
recognised directly in equity
Contributions by and distributions to the
owners of the company
Dividends paid - - - - (176.3) (176.3) (15.1) (191.4)
Adjustment arising from changes in non- - - - - - - (0.7) (0.7)
controlling interest
Purchase of own shares - - - - (11.6) (11.6) - (11.6)
Tax paid on share awards vested(1) - - - - (5.6) (5.6) - (5.6)
Equity-settled transactions - - - - 21.2 21.2 - 21.2
IFRS16 effects of deferred tax rate - - - - 0.1 0.1 - 0.1
Change
Total contributions by and distributions - - - - (172.2) (172.2) (15.8) (188.0)
to the owners of the company
At 31 December 2023 1.6 257.8 (133.8) 6.3 1,191.5 1,323.4 36.7 1,360.1
At 1 January 2024
Total comprehensive (expense)/income 1.6 257.8 (133.8) 6.3 1,191.5 1,323.4 36.7 1,360.1
for the period
Profit - - - - 345.4 345.4 21.8 367.2
Other comprehensive (expense)/income - - (63.7) - 9.7 (54.0) 0.6 (53.4)
Total comprehensive (expense)/income - - (63.7) - 355.1 291.4 22.4 313.8
for the year
Transactions with owners of the
company recognised directly in equity
Contributions by and distributions to the
owners of the company
Dividends paid - - - - (206.1) (206.1) (16.1) (222.2)
Adjustment arising from changes in non- - - - - - - - -
controlling interest
Purchase of own shares - - - - (24.7) (24.7) - (24.7)
Tax paid on share awards vested(1) - - - - (7.4) (7.4) - (7.4)
Equity-settled transactions - - - - 24.4 24.4 - 24.4
Income tax on equity-settled transactions - - - - 0.9 0.9 - 0.9
Total contributions by and distributions to the owners of the company - - - - (212.9) (212.9) (16.1) (229.0)
At 31 December 2024 1.6 257.8 (197.5) 6.3 1,333.7 1,401.9 43.0 1,444.9
(1) The tax paid on share awards vested is related to settlement of the tax
obligation by the Group via the sale of a portion of the equity-settled
shares.
The £119.3m dividend paid on 21 June 2024 represented a final dividend of 74p
per ordinary share in respect of the year ended 31 December 2023. The £115.5m
dividend paid on 15 June 2023 represented a final dividend of 71.6p per
ordinary share in respect of the year ended 31 December 2022. No ordinary
shares were issued in the period to satisfy the vesting of share awards.
Condensed Consolidated Statement of Cash Flows
For the year ended 31 December 2024
2024 2023
Notes £m £m
Cash flows from operating activities
Profit for the year 2 367.2 318.1
Adjustments for:
Depreciation charge 144.4 156.0
Amortisation of software 17.3 19.3
Amortisation of acquisition intangibles 32.3 34.2
Impairment of goodwill and other assets 6.9 2.6
Equity-settled transactions 24.4 21.2
Net financing costs 45.7 63.9
Income tax expense 122.8 104.2
Profit on disposal of property, plant, equipment and software (3.9) (3.2)
Operating cash flows before changes in working capital and operating 757.1 716.3
Provisions
Change in inventories (2.2) (1.2)
Change in trade and other receivables (45.6) (41.2)
Change in trade and other payables 69.8 47.7
Change in provisions (3.3) 4.3
Cash generated from operations 775.8 725.9
Interest and other finance expense paid (52.2) (71.9)
Income taxes paid (126.5) (119.0)
Net cash flows generated from operating activities* 597.1 535.0
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and software* 5.0 11.5
Interest received* 2.7 3.5
Acquisition of subsidiaries, net of cash received (14.9) (40.5)
Consideration paid in respect of prior year acquisitions - (2.7)
Acquisition of property, plant, equipment, software* 8 (135.0) (116.9)
Net cash flows used in investing activities (142.2) (145.1)
Cash flows from financing activities
Purchase of own shares (24.7) (11.6)
Tax paid on share awards vested (7.4) (5.6)
Drawdown of borrowings 24.7 160.5
Repayment of borrowings (98.4) (249.6)
Repayment of lease liabilities* (74.4) (77.8)
Purchase of non-controlling interest - (0.7)
Dividends paid to non-controlling interest (16.1) (15.1)
Equity dividends paid (206.1) (176.3)
Net cash flows generated from/(used in) financing activities (402.4) (376.2)
Net increase in cash and cash equivalents 6 52.5 13.7
Cash and cash equivalents at 1 January 6 298.6 320.7
Effect of exchange rate fluctuations on cash held 6 (14.6) (35.8)
Cash and cash equivalents at 31 December 6 336.5 298.6
* Free cash flow of £395.4m (2023: £355.3m) comprises the asterisked items
in the above Statement of Cash Flows.
Adjusted cash flow from operations of £789.2m (2023: £749.0m) comprises
statutory cash generated from operations of £775.8m (2023: £725.9m) before
cash outflows relating to Separately Disclosed Items of £13.4m (2023:
£23.1m)
Notes to the Condensed Consolidated Financial Statements
1. Material accounting policies
Basis of preparation
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2024 and 2023 but is
derived from the 2024 accounts. A full copy of the 2024 Annual Report and
Accounts will be available online at www.intertek.com
(http://www.intertek.com/) in March 2025. Statutory accounts for 2023 have
been delivered to the Registrar of Companies, and those for 2024 will be
delivered in due course. The auditors have reported on those accounts; their
reports were (i) unqualified, (ii) did not include references to any matters
to which the auditors drew attention by way of emphasis without qualifying
their reports and (iii) did not contain statements under Sections 498(2) or
498(3) of the Companies Act 2006.
The preparation of the financial statements requires management to make
estimates and assumptions that affect the reported amount of revenues,
expenses, assets and liabilities at the date of the financial statements. If
in the future such estimates and assumptions, which are based on management's
best judgement at the date of the financial statements, deviate from the
actual circumstances, the original estimates and assumptions will be modified
as appropriate in the year in which the circumstances change.
Significant accounting policies
There are no significant new accounting standards that have a material effect
on the results of the Group.
Key Estimations and Uncertainties
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these Condensed Consolidated Financial Statements, the key
sources of estimation were impacted with levels of estimation uncertainty in
relation to assumptions used in:
· impairment assessments (e.g. cash flow projections, long-term growth,
discount rate); and
· employee post-retirement benefit obligations.
Risks and uncertainties
The Group has a broad customer base across its multiple business lines and in
its different geographic regions and is supported by a robust balance sheet
and strong operational cash flows.
The Board has reviewed the Group's financial forecasts up to 31 December 2026
to assess both liquidity requirements and debt covenants.
In addition, the Group's financial forecasts for 2025 and 2026, and the
related liquidity position and forecast compliance with debt covenants, have
been sensitised for a severe yet plausible decline in economic conditions
(including an illustrative sensitivity scenario of a reduction of 30% to the
base profit forecasts and the corresponding impact to cash flow forecasts in
each of these years). In addition, reverse stress testing has also been
applied to the model which represents a significant decline in cashflows
compared with the 30% downside sensitivity. Such a scenario is considered to
be remote. The Board remains satisfied with the Group's funding and liquidity
position, with the Group forecast to remain within its committed facilities
and compliant with debt covenants even following the 30% downside sensitivity.
The sensitivity modelling excludes additional mitigating actions (e.g.
dividend cash payments, non-essential overheads and non-committed capital
expenditure) that are within management control and could be initiated if
deemed required.
The undrawn headroom on the Group's committed borrowing facilities at 31
December 2024 was £655.7m (2023: £664.3m). The maturity of our borrowing
facilities is disclosed in Note 14 of the financial statements with repayment
of two senior notes totalling US$120m required by 31 December 2025. Our models
forecast these to be repaid using existing facilities. Full details of the
Group's borrowing facilities and maturity profile are outlined in note 14 of
the Annual Report and Accounts.
On the basis of its forecasts to 31 December 2026, both base case and severe
yet plausible downside, and available facilities, the Board has concluded that
there are no material uncertainties over going concern, including no
anticipated breach of covenants, and therefore the going concern basis of
preparation continues to be appropriate.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on acquisition, are translated to sterling at
foreign exchange rates ruling at the reporting date. The income and expenses
of foreign operations are translated into sterling at cumulative average rates
of exchange during the year.
The most significant currencies for the Group were translated at the following
exchange rates:
Assets and Liabilities Income and expenses
Actual Rates Cumulative average rates
Value of £1 2024 2023 2024 2023
US dollar 1.26 1.28 1.28 1.24
Euro 1.21 1.15 1.18 1.15
Chinese renminbi 9.18 9.14 9.21 8.81
Hong Kong dollar 9.76 10.00 9.99 9.71
Australian dollar 2.02 1.87 1.94 1.87
2. Operating segments
Business analysis
The Group is organised into business lines, which are the Group's operating
segments and are reported to the CEO, the chief operating decision maker.
These operating segments are aggregated into five segments, which are the
Group's reportable segments, based on similar nature of products and services
and mid- to long-term structural growth drivers. When aggregating operating
segments into the five segments we have applied judgement over the
similarities of the services provided, the customer-base and the mid- to
long-term structural growth drivers. The costs of the corporate head office
and other costs which are not controlled by the five segments are allocated
appropriately. A description of the activity in each segment is given in the
Operating Review by Division.
The results of the segments are shown below:
For the year ended 31 December Revenue from external customers Depreciation and software amortisation Adjusted operating profit
£m £m £m
2024 Employee costs Separately Disclosed Items Operating profit
£m £m £m
Consumer Products 958.8 (387.1) (49.9) 268.7 (11.7) 257.0
Corporate Assurance 496.3 (192.2) (12.0) 117.2 (20.7) 96.5
Health and Safety 337.2 (147.4) (19.4) 46.0 (6.3) 39.7
Industry and Infrastructure 843.6 (416.9) (31.4) 80.7 (12.8) 67.9
World of Energy 757.3 (348.8) (49.0) 77.5 (2.9) 74.6
Total 3,393.2 (1,492.4) (161.7) 590.1 (54.4) 535.7
Group operating profit 590.1 (54.4) 535.7
Net financing costs (42.3) (3.4) (45.7)
Profit before income tax 547.8 (57.8) 490.0
Income tax (expense)/credit (135.2) 12.4 (122.8)
Profit for the year 412.6 (45.4) 367.2
For the year ended 31 December Revenue from Depreciation and Adjusted operating
external customers software amortisation profit
£m £m £m
2023 Separately Operating
Employee costs Disclosed Items profit
£m £m £m
Consumer Products 935.8 (380.8) (55.4) 246.8 (15.1) 231.7
Corporate Assurance 477.5 (185.0) (14.0) 109.4 (26.2) 83.2
Health and Safety 326.3 (141.8) (21.7) 43.2 (4.9) 38.3
Industry and Infrastructure 860.5 (405.6) (32.3) 86.1 (9.5) 76.6
World of Energy 728.6 (337.0) (51.9) 65.6 (9.2) 56.4
Total 3,328.7 (1,450.2) (175.3) 551.1 (64.9) 486.2
Group operating profit 551.1 (64.9) 486.2
Net financing costs (43.9) (20.0) (63.9)
Profit before income tax 507.2 (84.9) 422.3
Income tax (expense)/credit (124.8) 20.6 (104.2)
Profit for the year 382.4 (64.3) 318.1
3. Separately Disclosed Items (SDIs)
2024 2023
£m £m
Operating costs
Amortisation of acquisition intangibles (a) (32.3) (34.2)
Acquisition and integration costs (b) (2.5) (8.3)
Restructuring costs (c) (15.8) (22.4)
Significant claims and settlements (d) (3.8) -
Total operating costs (54.4) (64.9)
Net financing costs (e) (3.4) (20.0)
Total before income tax (57.8) (84.9)
Income tax credit on Separately Disclosed Items (f) 12.4 20.6
Total (45.4) (64.3)
Refer to the Presentation of Results section for further details on SDIs
(a) Of the amortisation of acquisition intangibles in the current period,
£0.6m relates to the customer relationships and trade names acquired with the
purchase of Base Metallurgical Laboratories Ltd ("Base Met Labs") in 2024.
(b) Acquisition and integration costs comprise £1.3m (2023: £4.7m) for
transaction and integration costs in respect of successful, active and aborted
acquisitions in the current year, and £1.2m in respect of prior-years'
acquisitions (2023: £3.6m).
(c) During 2022, the Group initiated the first year of a cost reduction
programme. In 2024, costs of £15.8m (2023: £22.4m) were associated with
operational streamlining which included consolidating sites and offices,
streamlining headcount and related asset write-offs.
(d) Significant claims and settlements relate to commercial claims that are
separately disclosable due to their size and nature.
(e) Net financing costs of £3.4m (2023: £20.0m) relate to the unwinding of
discounts and changes in the fair value of contingent considerations in
relation to acquisitions.
(f) Income tax credit on SDIs totalled £12.4m (2023: £20.6m) mainly
relating to deferred tax impact of the movement in amortisation on
intangibles.
4. Earnings per share (EPS)
2024 2023
£m £m
Based on the profit for the year:
Profit attributable to ordinary shareholders 345.4 297.4
Separately Disclosed Items after tax (note 3) 45.4 64.3
Adjusted earnings 390.8 361.7
Number of shares (millions):
Basic weighted average number of ordinary shares 161.1 161.3
Potentially dilutive share awards 1.3 0.9
Diluted weighted average number of shares 162.4 162.2
Basic earnings per share 214.4p 184.4p
Potentially dilutive share awards (1.7)p (1.0)p
Diluted earnings per share 212.7p 183.4p
Adjusted basic earnings per share 242.6p 224.2p
Potentially dilutive share awards (2.0)p (1.2)p
Adjusted diluted earnings per share 240.6p 223.0p
5. Pension schemes
The significant actuarial assumptions used in the valuation of the Group's
material defined benefit pension schemes as at 31 December 2024 have been
reviewed. The discount and inflation rates used to value the pension
liabilities, as well as the updated asset valuations and the net pension
liabilities, have not moved materially since 31 December 2024. A net actuarial
gain before taxation of £3.7m (2023: £2.6m loss) has been recognised in the
consolidated statement of comprehensive income. The net pension asset stands
at £27.2m for the UK pension scheme (2023: £21.8m) and a net pension
liability of £5.2m for the Swiss pension scheme as at 31 December 2024 (2023:
£4.8m).
The total income recognised in the consolidated income statement for the
Group's material defined benefit pension schemes of £0.2m (2023: £0.2m
expense) includes the current service cost and administration expenses of
£0.8m (2023: £1.2m) recognised in operating profit, and net pension interest
income of £1.0m (2023: £1.0m) recognised in net financing costs.
6. Analysis of net debt
2024 2023
£m £m
Cash and cash equivalents per the statement of financial position 343.0 299.3
Overdrafts (6.5) (0.7)
Cash per the statement of cash flows 336.5 298.6
The components of net debt are outlined below:
1 January Cash flow Non-cash adjustments Exchange adjustments 31 December
2024 £m £m £m 2024
£m £m
Cash 298.6 52.5 - (14.6) 336.5
Borrowings:
Revolving credit facility US$850m 2027 - (24.7) - 4.7 (20.0)
Senior notes US$125m 2024 (97.7) 98.4 - (0.7) -
Senior notes US$120m 2025 (93.8) - - (1.6) (95.4)
Senior notes US$75m 2026 (58.6) - - (1.0) (59.6)
Senior notes US$150m 2027 (117.2) - - (2.0) (119.2)
Senior notes US$165m 2028 (129.0) - - (2.2) (131.2)
Senior notes US$165m 2029 (129.0) - - (2.2) (131.2)
Senior notes US$160m 2030 (125.0) - - (2.1) (127.1)
Senior notes EUR€120m 2026 (104.1) - - 4.6 (99.5)
Senior notes EUR€25m 2027 (21.7) - - 1.0 (20.7)
Senior notes EUR€40m 2028 (34.7) - - 1.5 (33.2)
Other* 1.6 - (0.9) 0.1 0.8
Total borrowings (909.2) 73.7 (0.9) 0.1 (836.3)
Total financial net debt (610.6) 126.2 (0.9) (14.5) (499.8)
Lease liability (307.8) 74.4 (72.9) 6.7 (299.6)
Total net debt (918.4) 200.6 (73.8) (7.8) (799.4)
* Other includes uncommitted borrowings of £0.7m (2023: £0.8m) and facility
fees of £1.5m (2023: £2.4m).
2024 2023
£m £m
Borrowings due in less than one year 94.8 96.8
Borrowings due in one to two years 158.6 93.2
Borrowings due in two to five years 455.1 464.6
Borrowings due in over five years 127.8 254.6
Total borrowings 836.3 909.2
Description of borrowings
Total undrawn committed borrowing facilities as at 31 December 2024 were
£655.7m (2023: £664.3m).
Key facilities
US$850m revolving credit facility
The Group has a US$850m multi-currency revolving credit facility, which is the
Group's principal facility and in December 2021 was extended from 2026 to
2027. Advances under the facility bear interest at a rate equal to relevant
risk-free rate, or their local currency equivalents, plus a margin, depending
on the Group's financial leverage. Drawings under this facility at 31 December
2024 were £20m (2023: £nil).
Private placement bonds
In October 2011 the Group issued US$140m of senior notes repaid on 18 January
2022 at a fixed annual interest rate of 3.75% and US$105m repaid on 18 January
2024 at a fixed annual interest rate of 3.85%, funded from the existing
revolving credit facility.
In February 2013 the Group issued US$80m of senior notes. These notes were
issued in two tranches with US$40m repaid on 14 February 2023 at a fixed
annual interest rate of 3.10% and US$40m repaid on 14 February 2025 at a fixed
annual interest rate of 3.25%.
In July 2014 the Group issued US$110m of senior notes. These notes were issued
in four tranches with US$15m repaid on 31 July 2021 at a fixed annual interest
rate of 3.37%, US$20m repaid on 02 July 2024 at a fixed annual interest rate
of 3.86%, US$60m repayable on 31 October 2026 at a fixed annual interest
rate of 4.05% and US$15m repayable on 31 December 2026 at a fixed annual
interest rate of 4.10%.
In December 2020 the Group issued US$200m of senior notes. These notes were
issued in two tranches with US$120m repaid on 2 December 2023 at a fixed
annual interest rate of 1.97% and US$80m repayable on 2 December 2025 at a
fixed annual interest rate of 2.08%.
In December 2021 the Group issued US$640m of senior notes. These notes were
issued in four tranches with US$150m repayable on 13 January 2027 at a fixed
annual interest rate of 2.24%, US$165m repayable on 15 March 2028 at a fixed
annual interest rate of 2.33%, US$165m repayable on 15 March 2029 at a
fixed annual interest rate of 2.47% and US$160m repayable on 15 March 2030 at
a fixed annual interest rate of 2.54%.
In December 2023 the Group issued EUR€185m of senior notes. These notes were
issued in three tranches with EUR€120m repayable on 21 December 2026 at a
fixed annual interest rate of 3.94%, EUR€25m repayable on 21 December 2027
at a fixed annual interest rate of 3.89% and EUR€40m repayable on 21
December 2028 at a fixed annual interest rate of 3.88%.
7. Acquisition of businesses
(a) Acquisitions
The Group completed one acquisition in 2024 (2023: two).
On 1 March 2024, the Group acquired Base Metallurgical Laboratories Ltd. and
Base Met Labs US Ltd. (jointly "Base Met Labs"), a leading provider of
metallurgical testing services for the Minerals sector based in North America,
for a purchase price of £23.9m (£23.6m net of cash acquired), generating
goodwill of £15.4m
(b) Prior period acquisitions
£nil (2023: £2.7m) was paid during the period in respect of prior period
acquisitions.
(c) Details of 2023 acquisitions
Two acquisitions were made during 2023. Full details of the acquisitions made
in the year ended 31 December 2023 are disclosed in note 10 to the Annual
Report.
(d) Impairment
Goodwill generated from past acquisitions has been tested annually as required
by accounting standards. No impairments were identified during the period and
as such no impairment charge was recorded (2023: nil).
(e) Reconciliation of goodwill
£m
Goodwill at 1 January 2024 1,385.8
Additions 15.4
Transfers (2.1)
Foreign exchange (33.2)
Goodwill at 31 December 2024 1,365.9
8. Property, plant, equipment and software
Additions
During the year, the Group acquired fixed assets with a cost of £202.0m
(2023: £181.5m). The Group acquired £3.1m of fixed assets through business
combinations (2023: £2.2m). At 31 December 2024, the IFRS 16 right of use
asset is £280.5m (2023: £286.6m).
9. Subsequent events
On 14 February 2025, funded from the existing revolving facility, a US$40m
senior note at a fixed annual interest rate of 3.25% was repaid.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UOAORVUUORURRecent news on Intertek
See all newsREG - Intertek Group Plc - Half-year Report
AnnouncementREG - Intertek Group Plc - Total Voting Rights
AnnouncementREG - Intertek Group Plc - Transaction in Own Shares
AnnouncementREG - Intertek Group Plc - Transaction in Own Shares
AnnouncementREG - Intertek Group Plc - Total Voting Rights
Announcement