REG - Intertek Group Plc - Half-year Report
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RNS Number : 5061T Intertek Group PLC 01 August 2025
HALF YEAR RESULTS ANNOUNCEMENT
1 August 2025
Strong H1 25 performance with double-digit EPS(1) growth and on track to
deliver medium term targets
• Revenue of £1,673m, +4.5% at constant currency, and +0.2% at
actual rates
• Robust LFL revenue growth of 4.5%(1): Consumer Products 7.9%,
Corporate Assurance 8.2%, Health and Safety 3.2%, Industry and Infrastructure
3.0%, and stable LFL in the World of Energy.
• Recent acquisitions in attractive growth and margin segments
performing well
• Adjusted operating profit of £276.3m, +9.7% at constant currency
and +4.2% at actual rates
• Strong adjusted margin progression of 80bps(1) driven by mix,
pricing, operating leverage, cost control, productivity gains and margin
accretive investments
• Strong EPS growth: +12.6% in adjusted EPS at constant currency and
+6.3% at actual rates
• Excellent cash conversion of 118% delivers a strong adjusted
operating cash flow of £266m
• Increased investments in growth: capex up 11% Year-on-Year and
acquisition of TESIS in Brazil
• Continued investments in developing industry-leading ATIC
innovations: SupplyTek and AI(2) in H1 25
• £350m share buyback programme started in March with £187m
already repurchased (4 million shares)
• Excellent progress on ROIC to 22.5% up +170bps at constant
currency reflecting the compounding effect of our continuous strong earnings
performance and our accretive disciplined capital allocation policy
• Interim dividend of 57.3p, +6.3% year on year in line with
dividend policy of c.65% payout ratio
• Strong FY 2025 expected with mid-single digit LFL revenue growth
at constant currency, margin progression, well supported by superior growth in
Consumer Products and Corporate Assurance, our two most profitable divisions,
and strong free cash flow
• On track to deliver our medium term targets of mid-single digit
LFL revenue growth, 18.5%+ margin and strong cash
Note 1: at constant currency
André Lacroix: Chief Executive Officer statement
"I would like to recognise all my colleagues for having delivered a strong
performance in the first half of the year in customer service, revenue growth
management, margin accretion, earnings growth, cash generation and ROIC
progression. Once again, this demonstrates the company's ability to improve
its performance on a sustainable basis and consistently, across all our key
financial metrics with H1 25 being the ninth consecutive six-month period of
mid-single digit LFL revenue growth and the fifth consecutive six-month period
of double-digit EPS growth at constant currency.
Revenue grew by 4.5% driven by a robust LFL revenue growth and the
contribution of acquisitions. We have seen strong margin progression of 80bps
driven by our portfolio mix, pricing, operating leverage, our disciplined cost
approach, productivity improvements and margin accretive investments. Our cash
performance was excellent with a cash conversion of 118% delivering an
adjusted operating cash flow of £266m, operating with a strong balance sheet
at a gearing level of 1.0x net debt to EBITDA. We continue to invest in growth
to seize the exciting organic and inorganic opportunities we see in high
growth and high margin segments. We are pleased with the performance of our
acquisitions and the integration of TESIS is progressing well. Our ROIC
increased by 170bps to 22.5% demonstrating the strong returns of our high
quality earnings model.
Our role in society is mission-critical, providing a unique suite of
industry-leading ATIC solutions to over 400,000 clients across every industry
and region in each of our five divisions, and all our global business lines
enjoy scale leadership positions at both the local and global level. At this
time of global trade and increased supply chain complexity, our clients around
the world are in need of consulting, training and systemic ATIC solutions on
global market access, enabling them to bring their products to market at speed
but without compromising on the right quality assurance, safety and
sustainability standards.
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 higher demand for our ATIC solutions. We
believe the current environment creates additional growth opportunities for
Intertek with new global trade routes to assure, more products to test and
certify, and more factories to audit and inspect. Following a strong H1, we
enter H2 with confidence and now expect to deliver a strong performance in
2025 with mid-single digit LFL revenue growth at constant currency, margin
progression and a strong free cash flow.
Intertek's AAA Differentiated Growth Strategy is built on our best-in-class
operating platform, targeting areas for continuous improvement and long-term
value creation for all stakeholders. With global momentum toward building an
ever-better world, corporations are investing more in quality, safety, and
sustainability accelerating demand for our industry-leading ATIC solutions.
Everyone at Intertek is focused on executing our AAA strategy and consistently
delivering on our corporate targets: mid-single digit LFL revenue growth,
margin progression targeting 18.5%+ over time, strong cash generation, and
disciplined investments in both organic and inorganic growth to deliver a
superior ROIC. Our passionate, innovative, and customer-centric teams are
energised to take Intertek to greater heights, delivering AAA performance for
all stakeholders."
Key Adjusted Financials 2025 H1 2024 H1 Change at actual rates Change at constant rates(1)
Revenue £1,672.7m £1,669.5m 0.2% 4.5%
Like-for-like revenue(2) £1,670.0m £1,668.2m 0.1% 4.5%
Operating profit(3) £276.3m £265.1m 4.2% 9.7%
Operating margin(3) 16.5% 15.9% 60bps 80bps
Profit before tax(3) £256.0m £242.6m 5.5% 11.8%
Diluted earnings per share(3) 111.5p 104.9p 6.3% 12.6%
Interim dividend per share 57.3p 53.9p 6.3%
Cash generated from operations(3) £265.8m £267.4m (0.6)%
Free cash flow(3) £56.0m £90.6m (38.2)%
Financial net debt(4) £800.6m £708.2m 13.0%
Financial net debt / EBITDA(3, 4) 1.0x 1.0x
ROIC (rolling 12 months) 22.5% 20.4% 210bps 170bps
Key Statutory Financials 2025 H1 2024 H1 Change at 1 Constant rates are calculated by translating H1 24 results at H1 25 exchange
rates.
actual 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 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 on page 22.
4 Financial net debt excludes the IFRS 16 lease liability of £280.6m. Total
net debt is £1,081.2m. Reflects prior 12 months' EBITDA for relevant period.
See note 7 to the Condensed Consolidated Financial Statements.
Revenue £1,672.7m £1,669.5m 0.2%
Operating profit £246.8m £232.4m 6.2%
Operating margin 14.8% 13.9% 90bps
Profit before tax £226.5m £206.2m 9.8%
Profit after tax £168.4m £153.3m 9.8%
Diluted earnings per share 98.0p 87.2p 12.4%
Cash generated from operations £257.5m £260.3m (1.1%)
The Directors have approved an interim dividend of 57.3p per share (H1 24:
53.9p) to be paid on 7 October 2025 to shareholders on the register at close
of business on 12 September 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 call for analysts and investors will be held today at 9.30am UK time.
Details can be found at http://www.intertek.com/investors/
(http://www.intertek.com/investors/)
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 to Bring 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
I would like to recognise all my colleagues for having delivered a strong
performance in the first half of the year in customer service, revenue growth
management, margin accretion, earnings growth, cash generation and ROIC
progression.
H1 25 marks the ninth consecutive six-month period of consistent mid-single
digit LFL revenue growth and the fifth consecutive six-month period of
double-digit EPS growth at constant currency. Profit conversion was strong
with margin up year-on-year by 80bps, our strong cash conversion of 118%
enabled us to deliver adjusted operating cash flow of £266m and ROIC was
excellent at 22.5%, up year-on-year by 170bps. We are increasing our Interim
dividend by 6.3% in line with our progressive dividend policy.
The global demand for our ATIC solutions was robust and our LFL revenue growth
of 4.5% at constant rates was driven by both volume and price. We are pleased
to see the consistent delivery of mid-single digit LFL revenue growth
resulting in a three-year LFL revenue growth of over 13%. Our high quality
global growth portfolio is benefitting from attractive structural growth
drivers, providing the confidence to continue to deliver mid-single digit LFL
revenue moving forward.
We are seeing more corporate investment in quality assurance as companies
strive to increase their competitiveness with the continuing rise in
regulatory standards for quality, safety and sustainability being beneficial
to our growth trajectory. The higher focus by companies on risk management is
making Corporate Assurance our fastest growing division. Our Consumer Products
and Health and Safety divisions are increasing their testing and certification
activities as consumers want more and higher quality choices. Our Industry and
Infrastructure and World of Energy divisions are benefitting from the global
energy transition with more investment in traditional Oil and Gas exploration
and production and the electrification of society. Our superior customer
service drives our extremely high retention rate creating excellent client
relationships enabling us to increase our ATIC share of wallet, resulting in
revenues that are largely recurring and providing good visibility on new
opportunities.
We invest both organically and inorganically to drive growth. In H1 25, we
increased capital expenditure by 11% year on year to £62m. The acquisitions
we have made recently to scale up our portfolio in high growth and high margin
sectors - JLA, Controle Analtico, CEA, PlayerLync and Base Met Labs - are
performing well. The integration of TESIS, the acquisition we made this year,
is on track. The consolidation opportunities in our industry are significant,
and we will continue to invest in inorganic growth while retaining our ROIC
discipline.
We are very pleased with our margin performance of 16.5% which was up 80bps at
constant currency. Margin accretive revenue growth is central to the way we
deliver value. We have increased our operating margin in the first six month
period by a total of 240bps over the last three years, thanks to the
compounding effect of our proven margin-accretive revenue growth approach
based on strong and sustainable building blocks.
We pursue a growth and margin accretive portfolio strategy operating in high
growth and high margin sectors with strong pricing power, enabling us to
benefit from a portfolio mix effect. We deliver consistent mid-single digit
LFL revenue growth and given our performance management discipline we are
benefitting from good operating leverage. We always look at ways to reduce our
fixed costs and a few years ago, we announced a cost reduction programme to
target productivity opportunities based on operational streamlining and
technology upgrade initiatives. Our restructuring programme delivered £13m of
savings in 2023, £11m in 2024 and £2m in H1 25. We expect a further benefit
of £3m in H2 25. We believe in continuous improvement at Intertek, and we
never stop re-inventing ourselves to increase our productivity based on
process re-engineering and technology investments. In the last five years,
these positive margin drivers were partially offset by the cost of inflation
as well as the investments in capability to accelerate growth.
The value growth opportunity ahead is significant. We expect a strong
financial performance in 2025 and going forward we remain confident in our
medium term targets of mid-single digit LFL revenue growth, margin of 18.5%+,
and strong cash generation. We will continue to operate with a disciplined
and accretive capital allocation policy, rewarding shareholders with a c. 65%
payout ratio based on our progressive dividend policy and investing in future
inorganic growth opportunities, leveraging our financial capability and
capitalising on our value accretive M&A track record.
We are mission-critical for the world to operate safely and for the global
economy to thrive sustainably
True to our purpose of bringing quality, safety and sustainability to Life, we
are mission-critical in keeping the supply chains of our clients safe every
day around the world in our five divisions that cover more than 15 industries:
Consumer Products, Corporate Assurance, Health and Safety, Industry and
Infrastructure and World of Energy. There is no question that making the world
ever-better in quality and safety is needed for the world to deliver
sustainable economic growth.
We play a unique role in society, which consists of delivering independent
quality assurance of product specifications and performance for our clients
during the R&D phase; on the manufacturing assets that our clients invest
in to build their supply chains; on the raw materials that the suppliers of
our clients provide to start the production process; on finished products
before they leave our client's factories; and on the raw materials and
finished products when products arrive in their countries of destination.
Our global colleagues are recruited from the best universities, operate in
state of the art high-tech operations, are trained to deliver a best-in-class
independent quality assurance using our Intertek proprietary operating
procedures. They are valued by our customers for their scientific expertise
and outstanding customer service delivering our Customer Promise every day:
our innovative Assurance, Testing, Inspection and Certification solutions
delivered 24/7 with precision, pace and passion, enabling you to power ahead
safely.
Intertek has always been a pioneer in the Quality Assurance industry,
capitalising on its Science-based Customer Excellence competitive advantage to
identify the unmet quality assurance needs of our clients, invest in the
development of industry- leading quality assurance innovations to take our
customer service to greater heights and then rigorously monitor the
satisfaction of our clients with c. 6,000 NPS customer interviews a month.
In 2015, after an extensive global market research programme, we decided to
re-invent our value proposition by adding the 'A' with our Assurance solutions
to our well known 'TIC' (Testing, Inspection and Certification) solutions. The
main insight behind our value proposition re-invention was that given the fact
that the global operations of our clients had become so vast and complex, our
Testing, Inspection, Certification quality control offering was necessary but
not sufficient to provide an end-to-end independent quality assurance.
Said differently, we realised that our clients could not do quality control at
every point of their entire value chain and that's why we added the 'A' to our
'TIC' offering. Our Assurance solutions provide an audit of operating
procedures and management systems to identify the end-to-end risks in the
entire value chains of our clients and once the risk-assessment is done, our
Testing, Inspection and Certification solutions assess the quality, safety and
sustainability standards that our clients need in the high risks areas of
their operations.
The Quality Assurance industry is an exciting space in terms of growth moving
forward, building on the sustainable growth that the industry has seen in the
last few decades. We are at an interesting inflection point as even though
companies invest more today than in the past in quality assurance, we know
that they are not investing enough. This is evidenced by the regular product
recalls that make the news too often, by the numerous and well-known customer
complaints in all sectors and importantly, by the significant regulatory gaps
that exist and will need to be closed in the next few years in terms of
quality, safety and technology.
Our unique ATIC proposition, which consists of providing our ATIC solutions
across five divisions and in more than 100 countries, underpins our earnings
model with exciting Risk-based Quality Assurance growth drivers for each of
our four ATIC solutions:
· Assurance represented 21% of our FY24 Group revenue and has been the
fastest growing solution between 2015 and 2024 with a revenue CAGR of 14%.
Assurance is all about assessing risks in our clients' value chains through
audits of operating procedures and operating systems. It will continue to be
the fastest growing, as corporations will continue to increase their focus on
risk management, given the increased complexity of their global operations and
the fact that their stakeholders can be very vocal on social media, creating
huge reputational challenges if a major risk is not well mitigated.
· Testing is Intertek's largest solution representing 46% of our FY24
revenue, with a consistent revenue CAGR of 3.6% between 2015 and 2024. We do
not test the quantity of products being manufactured but instead the number of
product types or SKUs (Stock Keeping Units) being manufactured. This means
that the growth driver for our testing activities is linked to the SKUs being
launched by our clients and the number of tests per product. The megatrend
supporting the growth of our testing activities is extremely positive as
consumers will never stop asking for more choices and choices of higher
quality.
· Inspection is the second largest solution at Intertek representing
25% of our FY24 revenue and has a good track record with a revenue CAGR of
2.9% between 2015 and 2024. We provide inspections for our clients in both
their upstream and downstream operations, with engineering-based inspection of
the manufacturing assets clients are building to expand their supply chains,
and with an end-to-end quality, safety and sustainability assessment of the
products they manufacture either before leaving the country of production or
when arriving in the country of consumption. The growth drivers moving forward
for our inspection businesses are very positive, as we expect continuous
investments in safer and greener infrastructure as well as sustainable growth
in consumption.
· Certification is the smallest solution at Intertek with 8% of our
FY24 revenue but has a strong track record of sustainable growth with a 5.6%
revenue CAGR between 2015 and 2024. We provide a rigorous assessment of the
quality, safety and sustainability performance of products for our clients,
based on the quality, safety and sustainability threshold imposed by the
regulators to authorise consumption locally. This is a very exciting solution
in terms of growth moving forward as the development of new products to
increase customer satisfaction usually requires higher technology content in
the design of a product. This increases the quality, safety and sustainability
risks which in turn increases the need for the regulator to increase its
quality, safety and sustainability thresholds.
We have built a high quality portfolio to deliver superior customer service to
our clients, offering a unique suite of industry-leading ATIC solutions in
each of our five divisions. We enjoy scale leadership positions at both the
local and global level in all our business lines and we target ATIC innovation
opportunities in high growth and high margin segments to deliver superior
returns. Importantly, our ATIC portfolio has strong intrinsic defensive
characteristics given the fact that the ATIC solutions we offer are
mission-critical for our clients, we operate a highly diversified set of
revenue streams (geographically, by business lines and by ATIC solutions) and
we enjoy strong and lasting relationships with our clients.
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.
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 Oil and Gas exploration and
production in the last decade and the lack of scale in renewables, investment
for production in traditional Oil and Gas 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.
We are uniquely positioned to help companies navigate the current environment,
capitalising on our data-driven insights and technical expertise in each of
the industries we operate in. Intertek is a true pioneer in the Total Quality
Assurance market, always anticipating the needs of clients and bringing to
market industry-leading innovations with agility and pace to accelerate
growth. A great example of our pioneering approach is SupplyTek, which
empowers our clients to confidently navigate today's fast changing global
environment, turning uncertainty into opportunity. It is at times like this
where our purpose comes to life and our passion for Science-based excellence
makes a huge difference for our clients.
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 higher demand for our ATIC solutions. We
believe the current environment creates additional growth opportunities for
Intertek with new global trade routes to assure, more products to test and
certify, and more factories to audit and inspect.
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 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 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
Medium Term Margin Target of 18.5%+
We 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.
Pioneering Innovations and Investments in growth
True to our pioneering spirit, we continue to lead the industry and innovate
to meet the emerging needs of our customers with winning ATIC solutions.
We are constantly learning from our customers, using extensive feedback they
provide us with every month through our comprehensive NPS research programme
to help deliver ever-better solutions for their evolving requirements.
We believe that successful innovation starts with investing in the insight
advantage, which means having a deep understanding of what our customers need
and want. With the ability to access world-class customer intelligence
site-by- site from anywhere across our global network, we have a continuous
stream of data that enables us to build on our insights and develop new ATIC
solutions.
Our clients have also realised that they need to invest more in product and
service innovation to meet the changing needs of their customers. The other
major area of investment inside corporations is sustainability and we are
seeing positive momentum with new and emerging regulations. This means
companies will have to re-invent 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.
During the period, we launched SupplyTek, a unique, end-to-end suite of
solutions designed to help companies around the world navigate growing supply
chain complexity. Capitalising on Intertek's leading-edge Consulting,
Training, and Assurance solutions, SupplyTek enables customers to optimise
operations, identify alternative suppliers, and remain fully compliant with
regulations-allowing them to achieve faster market access amidst a rapidly
evolving global landscape.
As AI reshapes our world at an unprecedented pace, we recently introduced
Intertek AI², the world's first independent, end-to-end AI assurance
programme. Covering the entire AI lifecycle from ideation through to
deployment and beyond, Intertek AI² provides organisations across various
industries with comprehensive assurance solutions designed to ensure their AI
systems are smarter, safer, and trusted.
To help customers respond to the new EU Deforestation Regulation (EUDR), we
also launched a comprehensive suite of risk-based assurance solutions designed
to support everyone from farmers to end-consumers. At the heart of this
offering is EUDRtrace, a cutting-edge blockchain platform that delivers expert
guidance through advanced traceability technology. This is enabling our
clients to achieve full transparency across their supply chains, ensuring
compliance with regulatory requirements while protecting their market position
and paving the way towards a sustainable, deforestation-free future.
In addition, we continue to invest organically in the business. We have
expanded our metallurgical testing capabilities in the Perth Minerals Centre
of Excellence and our accredited laboratory in Tarkwa, Ghana, to support
clients across the entire mining value chain, delivering advanced, data-driven
metallurgical services that cover production right through to process
optimisation.
In the period, we have invested £62m in Capex, an increase of 11% year on
year.
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 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 and Forestry and expands our business in
Australia, USA, Canada and China. JLA Brasil Laboratório de Análises de
Alimentos S.A. was acquired 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), 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, 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, 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, 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%.
In May 2025, we announced the acquisition of Tecnologia e Qualidade de
Sistemas em Engenharia Ltda (TESIS), a provider of high quality testing and
conformity assessment services across a broad range of building products in
São Paulo, Brazil. The acquisition expands our leading Building &
Construction Total Quality Assurance business into Brazil's construction
industry, while also complementing Intertek's existing building products
testing and assurance business in North America, opening up an attractive high
growth, high margin sector for our cutting-edge ATIC solutions.
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.
High quality cash compounder earnings model
We operate a differentiated, high quality growth business model 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.
Our first priority is to support organic growth, and we target a Capex
investment of 4-5% of our revenue to expand our footprint organically, develop
industry winning innovations that are largely technology based, maintain our
state of the art global network and invest in technology to digitise and
streamline our processes.
Our second priority is to reward our shareholders with a progressive dividend
policy that targets a c. 65% payout ratio.
We are very excited about the inorganic investment opportunities and selective
M&A investments will continue to be made with the same disciplined
ROIC-driven approach.
Our leverage target is 1.3-1.8 net debt/EBITDA. Given the increasing strengths
of our high quality cash compounder earnings model, we announced in March a
£350m share buyback programme to return the cash we do not need to run the
company for profitable growth. At half year, the programme is on track, and we
have bought 4 million shares for a value of £187m.
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.
On track to deliver a strong 2025
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.
We believe the outcome of the tariff discussions will create additional growth
opportunities for Intertek with new global trade routes to assure, more
products to test and certify, and more factories to audit and inspect.
Capitalising on our strong H1 25 performance, we expect to deliver a strong
performance in 2025 with mid-single digit LFL revenue growth at constant
currency, margin progression and strong free cash flow.
Our mid-single digit LFL revenue growth at constant rates will be driven by:
• High-single digit LFL revenue growth in Consumer Products
• High-single digit LFL revenue growth in Corporate Assurance
• Low-single digit LFL revenue growth in Health and Safety
• Low-single digit LFL revenue growth in Industry and Infrastructure
• Low-single digit LFL revenue growth in the World of Energy
Our financial guidance for 2025 is that we expect:
• Capital expenditure in the range of £135-145m
• Net finance costs in the £41-42m range pre-buyback and £51-52m
post-buyback
• Effective tax rate in the 25-26% range
• Minority interests of between £22-23m
• Targeted dividend payout ratio of c. 65%
FY25 net financial debt to be in the range of £820-870m post-buyback (prior
to any material movements due to FX or M&A).
Currency has remained volatile, and we are updating our full year guidance.
The average sterling exchange rate in the last three months applied to the
full year results of 2024 would reduce our full year revenue by 350bps and our
full year earnings by 500bps.
Significant Value Growth Opportunity Ahead
We have made strong progress in the last 10 years on our ATIC good to great
journey and the value growth opportunity ahead is significant.
Our highly engaged, customer-centric organisation is laser-focused to take
Intertek to greater heights, putting our AAA strategy in action.
To deliver sustainable growth and value for our shareholders, we will
capitalise on our high quality cash compounder earnings model, benefitting
year after year from the compounding effect of mid-single digit LFL revenue
growth, margin accretion, strong free cash-flow and disciplined investments in
high growth and high margin sectors.
We operate in a highly attractive industry with a differentiated value
proposition, and we are confident in the value growth opportunity moving
forward.
· We have good visibility on the attractive structural growth drivers
underpinning our expected mid-single digit LFL revenue growth
· We are confident we will deliver our 18.5%+ medium term margin target
focussing on our proven margin progression building blocks
· We have step-changed the cash generation of the Group over the years,
and our earnings model will continue to be highly cash generative
· We will continue to operate with our accretive disciplined policy and
reward our shareholders with an attractive and progressive dividend payout
· We will continue to invest in high growth and high margin sectors
with superior execution, as evidenced by the progress we have made in ROIC in
the last 10 years
In the last 10 years, Intertek has created significant value, and we are well
positioned to deliver significant value creation for all stakeholders going
forward.
To capture the value growth opportunity ahead, we will capitalise on our five
unique strengths in the ATIC industry.
· our high quality global growth portfolio with scale leadership
positions
· our Science-based Customer Excellence ATIC Advantage
· our discipline financial and non-financial performance management
· our high performance organisation attracts the best talents in the
industry
· our Doing the Business the Right Way operating culture with strong
control, compliance and governance
André Lacroix
Chief Executive Officer
Operating Review
For the six months ended 30 June 2025
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
H1 25 H1 24 Change at actual rates Change at constant rates(1)
£m £m
Revenue 1,672.7 1,669.5 0.2% 4.5%
Like-for-like revenue(2) 1,670.0 1,668.2 0.1% 4.5%
Adjusted operating profit(3) 276.3 265.1 4.2% 9.7%
Adjusted operating margin(3) 16.5% 15.9% 60bps 80bps
Adjusted net financing costs(3) (20.3) (22.5) (9.8%) (11.0%)
Adjusted income tax expense(3) (65.8) (60.7) 8.4% 14.8%
Adjusted earnings for the period(3) 180.0 170.2 5.8% 12.0%
Adjusted diluted earnings per share(3) 111.5p 104.9p 6.3% 12.6%
1. Constant rates are calculated by translating H1 24 results at
H1 25 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 Interim Financial Statements on page 36.
Total reported Group revenue increased by 0.2%, a LFL revenue increase of 0.1%
at actual rates.
The Group's LFL revenue at constant rates of 4.5% reflected an increase of
7.9% in Consumer Products, 8.2% in Corporate Assurance, 3.2% in Health and
Safety, 3.0% in Industry and Infrastructure and stable in World of Energy.
We delivered an adjusted operating profit of £276.3m, +9.7% at constant rates
and +4.2% at actual rates.
The Group's adjusted operating margin was 16.5%, an increase of 80bps compared
to the prior year at constant exchange rates.
The Group's statutory operating profit after SDIs for the period was £246.8m
(H1 24: £232.4m) and margin was 14.8% (H1 24: 13.9%).
Net Financing Costs
Adjusted net financing costs were £20.3m (H1 24: £22.5m), comprising £1.8m
(H1 24: £1.0m) of finance income and £22.1m (H1 24: £23.5m) of finance
expense.
Tax
The adjusted effective tax rate was 25.7%, an increase of 0.7% on the prior
year (H1 24: 25.0%, FY 24: 24.7%). The tax charge, including the impact of
SDIs, of £58.1m (H1 24: £52.9m), equates to an effective rate of 25.6% (H1
24: 25.7%, FY 24: 25.1%).
Earnings Per Share
Adjusted diluted earnings per share at actual exchange rates was 6.3% higher
at 111.5p. Diluted earnings per share after SDIs was 98.0p (H1 24: 87.2p) per
share and basic earnings per share after SDIs was 98.9p (H1 24: 87.8p).
Dividend
The Board has approved an interim dividend of 57.3p per share, which is an
increase of 6.3% compared to the prior year (H1 24: 53.9p), reflecting growth
in adjusted diluted earnings per share and in line with our dividend policy
based on a payout ratio of c. 65% of earnings. The dividend will be paid on 7
October 2025 to shareholders on the register on 12 September 2025.
Investments
The Group invested £61.8m (H1 24: £55.6m) of organic net capital investment
in laboratory expansions, new technologies and equipment to expand our market
coverage and develop innovative ATIC solutions.
On 30 April 2025, the Group acquired Tecnologia e Qualidade de Sistemas em
Engenharia Ltda ("TESIS"), a leading provider of building products testing and
assurance services, based in São Paulo, Brazil, for a purchase price of
£11.2m. Purchase consideration net of cash acquired was £11.0m. The purchase
price includes cash consideration of £8.2m and further contingent
consideration of £3.0m. The cash outflow in the period associated with this
acquisition was £8.2m.
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. Purchase consideration net of cash acquired
was £23.6m. The purchase price includes cash consideration of £14.9m,
further contingent consideration payable of £7.8m and deferred consideration
of £0.9m. The cash outflow in 2024 associated with this acquisition was
£14.9m.
Cash Flow
The Group's cash performance in the period was strong, with adjusted free cash
flow of £56.0m (H1 24: £90.6m), driven by excellent cash conversion, the
result of disciplined working capital management. Adjusted cash generated from
operations was £265.8m (H1 24: £267.4m). Statutory cash generated from
operations was £257.5m (H1 24: £260.3m).
Financial Position
The Group ended the period in a strong financial position. Financial net debt
was £800.6m (H1 24: £708.2m), our net debt to EBITDA ratio is 1.0x (H1 24:
1.0x) and our weighted average interest rate is 3.3% (H1 24: 3.1%). The
undrawn headroom on the Group's existing committed borrowing facilities at 30
June 2025 was £540.7m (FY 24: £655.7m).
Consumer Products Division
H1 2025 H1 2024 Change at actual rates Change at constant rates
£m
£m
Revenue 481.7 467.9 2.9% 7.5%
Like-for-like revenue 481.7 466.6 3.2% 7.9%
Adjusted operating profit 135.6 122.8 10.4% 15.8%
Adjusted operating margin 28.2% 26.2% 200bps 210bps
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:
· InterLink 2.0 - a cutting-edge, data-led Total Quality Management
platform that allows brands and retailers to manage product quality assurance
in complex production cycles. Through a single, user-friendly interface,
InterLink 2.0 provides Intertek's customers with real-time insights into every
stage of the product assurance process, enabling them to effectively mitigate
supply chain risks throughout their operations via a single, unified platform
and enhance speed to market.
· SupplyTek - the first comprehensive suite of industry-leading ATIC
global market access solutions designed to help companies navigate the
complexities of supply chain re-engineering. Leveraging Intertek's global
footprint, Science-based Quality Assurance solutions, unrivalled supply chain
intelligence, deep expertise and years of data insights, SupplyTek enables
businesses to optimise their operations, identify alternative suppliers, and
remain fully compliant with international trade regulations so they can
achieve faster market access.
· Intertek AI² - the world's first independent end-to-end AI assurance
programme, providing comprehensive solutions for organisations across various
industries to ensure their AI systems are smarter, safer, and trusted.
Covering the entire AI lifecycle, from ideation to deployment and beyond,
Intertek AI² uniquely positions our customers to ensure AI systems meet the
highest standards of reliability and trustworthiness.
H1 2025 Performance
In H1 25 our Consumer Products-related business delivered revenue of £481.7m
up year on year by 7.5% at constant currency and 2.9% at actual rates. We
delivered an adjusted operating profit of £135.6m, up 15.8% year on year at
constant currency and up 10.4% year on year at actual rates resulting in an
adjusted operating margin of 28.2% up 210bps year on year at constant
currency.
• Our Softlines business delivered double-digit LFL revenue growth
at constant currency benefitting from additional ATIC investments by our
clients in e-commerce and sustainability, as well as an increased focus on new
products.
• Hardlines reported mid-single digit LFL revenue growth at constant
currency, driven by ATIC investments from our clients in e-commerce and
sustainability, as well as new product development in both the toy and
furniture segments.
• With increased ATIC activities driven by higher 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 at constant currency.
• Our Government & Trade Services business, which 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, reported double-digit LFL revenue growth at constant
currency.
2025 growth outlook
We now expect our Consumer Products division to deliver high-single digit LFL
revenue growth at constant currency.
Medium- to long-term growth outlook
Our Consumer Products division will benefit from growth in new brands, SKUs
& e-commerce, 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
H1 2025 H1 2024 Change at actual rates Change at constant rates
£m £m
251.2 242.1 3.8% 8.2%
Revenue
Like-for-like revenue 251.2 242.1 3.8% 8.2%
Adjusted operating profit 55.6 52.3 6.3% 11.2%
Adjusted operating margin 22.1% 21.6% 50bps 60bps
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 superior customer service
in our Corporate Assurance related businesses:
· EU Deforestation Regulation (EUDR) solutions - Intertek offers a
comprehensive suite of services designed to help companies navigate new
legislation, expected to come into force on 30 December 2025, impacting key
commodities. These solutions include EUDRtrace, a new cutting-edge blockchain
platform, which provides expert guidance and traceability technology to give
customers complete confidence in the transparency of their supply chains.
Offering support from farmers to end-consumers, Intertek's risk-based
assurance solutions provide a seamless path to a sustainable,
deforestation-free future by ensuring businesses achieve compliance with
regulatory requirements while safeguarding their market position.
· Intertek People Assurance partnered with Synthesia the UK's largest
generative AI media company by valuation, to deliver consistent, high quality
training content across global frontline teams. By integrating this advanced,
AI-powered technology into our products, the partnership gives Intertek's
People Assurance clients the ability to scale dynamic, multi-lingual, and
branded training videos to local teams at speed and with minimal production
costs.
· CDP solutions - Intertek provides comprehensive support to companies
undertaking CDP assessments, helping them to identify improvement areas and
implement targeted action plans, focusing on Energy, Emissions, Water, Waste,
and Biodiversity data. By conducting a range of exercises including gap
analyses around disclosure and peer benchmarking, we help customers to embed
long-term sustainable practices into their operations and supply chains.
H1 2025 Performance
In H1 25, our Corporate Assurance-related business reported revenue of
£251.2m, LFL revenue growth of 8.2% at constant currency and of 3.8% at
actual rates. We delivered adjusted operating profit of £55.6m up 11.2% year
on year at constant currency and up 6.3% year on year at actual rates with an
adjusted operating margin of 22.1% an increase of 60bps year on year at
constant currency.
• Business Assurance reported high-single digit LFL revenue growth
at constant currency driven by increased client investments to improve the
resilience of their supply chains, the continuing corporate focus on ethical
supply and the greater need for sustainability assurance.
• The Assuris business reported low-single digit LFL revenue growth
at constant currency as we continue to benefit from improved demand for our
regulatory assurance solutions and from increased corporate investment in ESG.
2025 growth outlook
We continue to 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
H1 2025 H1 2024 Change at actual rates Change at constant rates
£m
£m
163.7 166.8 (1.9%) 3.2%
Revenue
Like-for-like revenue 163.7 166.8 (1.9%) 3.2%
Adjusted operating profit 19.3 20.3 (4.9%) 2.7%
Adjusted operating margin 11.8% 12.2% (40bps) (10bps)
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:
· 360° Brand Assurance - a comprehensive audit programme designed to
manage and protect the reputation of brands across the global food industry.
Harnessing Intertek's global network of technical experts, this service
provides clients with access to tailored corrective action plans and data-led
analytics so they can successfully deliver quality and value to every customer
while maintaining the highest standards of health and safety.
· Intertek HoneyTrace - an innovative, blockchain-based traceability
solution designed to protect the integrity of every stage of the honey supply
chain, from hive to jar. By tracking each batch and minimising opportunities
for adulteration, HoneyTrace helps brands to meet regulatory requirements,
safeguard consumers, and build trust through unparalleled traceability and
accountability.
· Intertek AgriTech expanded its cutting-edge DNA based
testing technology, based on genetic information extracted from plant tissues
or products derived from plants. Intertek AgriTech technologies enable
cost-effective, end-to-end testing throughout the entire agricultural and
food value chain, rather than being limited to plant breeding and seed
production. Bringing together innovative enhanced DNA testing techniques and
quality assurance solutions, Intertek AgriTech enables agricultural and food
businesses to assure the quality, safety and authenticity of products
and crops.
H1 2025 Performance
In H1 25, our Health and Safety-related business delivered LFL revenue growth
of 3.2% at constant currency to £163.7m, a year on year decrease of 1.9% at
actual rates. Adjusted operating profit was £19.3m, up 2.7% year on year at
constant currency but down 4.9% at actual rates. Adjusted operating margin was
11.8%, 10bps lower 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 mid-single
digit LFL revenue growth at constant currency as we continue to see more
demand for inspection activities driven by sustained growth in the global food
industry.
• Our Food business registered double-digit LFL revenue growth at
constant currency as we continue to benefit from increased demand for food
safety testing activities as well as hygiene and safety audits in factories.
• Chemicals & Pharma reported negative low-single digit LFL
revenue performance at constant currency due to a demanding comparative base
in the previous year. The business continues to benefit from the increased
demand for regulatory assurance and chemical testing and higher R&D
investment in the pharmaceutical industry.
2025 growth outlook
We now expect our Health and Safety division to deliver low-single digit LFL
revenue growth at constant currency.
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 pharmaceutical 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
H1 2025 H1 2024 Change at actual rates Change at constant rates
£m
£m
417.3 420.5 (0.8%) 3.7%
Revenue
Like-for-like revenue 414.6 420.5 (1.4%) 3.0%
Adjusted operating profit 36.3 36.8 (1.4%) 4.6%
Adjusted operating margin 8.7% 8.8% (10bps) 10bps
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 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. 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).
• Building & Construction Health, Safety and Welfare (HSW)
Certification - a dedicated new platform launched in collaboration with
Intertek Wisetail, providing a centralised, American Institute of Architects
(AIA) approved, user-friendly online hub for architects to complete mandatory
continuing education courses focused on critical HSW topics. Developed in
collaboration with Wisetail, the new platform represents a significant step
for Intertek in deepening its engagement with the architectural sector and
enhancing its reputation as a trusted Quality Assurance partner.
• Metallurgical Testing Expansion - Leveraging the advanced
technical strengths of Base Met Labs, Intertek has expanded its metallurgical
testing capabilities through investments in the Perth Minerals Centre of
Excellence and the Group's newly accredited laboratory in Tarkwa, Ghana. From
early exploration through to production and process optimisation, these
state-of-the-art facilities can support clients across the entire mining value
chain, reinforcing Intertek's position as a trusted partner for high quality,
data driven metallurgical services and creating attractive growth
opportunities.
H1 2025 Performance
Our Industry and Infrastructure-related business reported H1 25 revenue growth
of 3.7% at constant currency to £417.3m, and down 0.8% at actual rates.
Adjusted operating profit of £36.3m was up 4.6% at constant currency and down
1.4% year on year at actual rates. Adjusted operating margin was 8.7%, up year
on year 10bps at constant currency.
• Industry Services, which includes our Capex Inspection services
and Opex Maintenance services, delivered mid- single digit revenue growth at
constant currency benefitting from increased capex investment in traditional
Oil and Gas exploration and production as well as in renewables.
• The continuing high demand for testing and inspection activities
drove mid-single digit LFL revenue growth at constant currency in our Minerals
business.
• We continue to benefit from growing demand for more
environmentally friendly buildings and the increased number of infrastructure
projects in our Building & Construction business in North America, which
delivered flat LFL revenue growth performance at constant currency.
2025 growth outlook
We now expect our Industry and Infrastructure division to deliver a low-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
H1 2025 H1 2024 Change at actual rates Change at constant rates
£m
£m
358.8 372.2 (3.6%) 0.0%
Revenue
Like-for-like revenue 358.8 372.2 (3.6%) 0.0%
Adjusted operating profit 29.5 32.9 (10.3%) (5.4%)
Adjusted operating margin 8.2% 8.8% (60bps) (50bps)
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 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.
Our Caleb Brett business provides 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 TT 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.
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:
• Drone Stockpile Assessment (ASA) - a highly advanced, LiDAR
drone technology used to provide rapid and accurate data across various
industries, including cement, fertilizers, and grain storage. Through
streamlined inventory management, audit preparedness, and commercial
assurance, ASA minimises the exposure of on-site personnel to risk and
represents a transformative step forward in dry bulk material surveying.
• Cutting-edge fuel testing - a specialised and rare testing
service which helps fuel and additive manufacturers ensure that their products
maintain injector cleanliness, optimise engine performance, and meet critical
emissions standards. Launched at Intertek's state-of-the-art Milton Keynes
facility, CEC-TDG- F-113 fuel testing service will support the fuel and
additive industries in providing cutting-edge fuel and engine testing
technologies while ensuring their products meet critical regulatory standards.
• PV Module Recycling - a fully customisable recycling process
that helps asset owners, developers, and operators recover glass, aluminium,
silicon, and trace metals from end-of-life solar panels, returning these
materials to the value chain. With certified plant partnerships, full
traceability, and recycling certificates, CEA helps customers to avoid
landfill risks, meet regulatory requirements, and better protect their brand
reputation.
H1 2025 performance
H1 25 saw our World of Energy-related business report revenue of £358.8m,
unchanged on a LFL basis of 0.0% at constant currency but 3.6% lower at actual
rates. Adjusted operating profit was £29.5m, down 5.4% year on year at
constant currency and down 10.3% at actual rates. Adjusted operating margin of
8.2% is down 50bps year on year at constant currency.
• Caleb Brett, the global leader in the Crude Oil and Refined
products global trading markets, delivered a stable LFL revenue performance at
constant currency.
• Transportation Technologies reported a low-single digit LFL
revenue performance at constant currency as we continue to benefit from
continuous investments on new power trains to lower Co2/Nox emissions and in
traditional combustion engines to improve fuel efficiency.
• Our CEA business continued to benefit from the increased
investments in solar panels, the fastest growing form of renewable energy, but
delivered negative mid-single digit LFL revenue performance at constant
currency due to a demanding comparative base in the previous year.
2025 growth outlook
We continue to expect our World of Energy division to deliver low-single digit
LFL revenue growth at constant currency.
Medium- to long-term growth outlook
Our World of Energy division will benefit from increased investment by 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.
Presentation of Results
For the half year ended 30 June 2025
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 Growth
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 H1 24 results at H1 25 exchange rates.
Separately Disclosed Items
SDIs are items which by their nature or size, in the opinion of the Directors,
should be excluded from the adjusted results to provide readers with a clear
and consistent view of the business performance of the Group and its operating
divisions. Reconciliations of the Reported to Adjusted Performance Measures
are given below.
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 non-current assets; costs of acquiring and
integrating acquisitions; the cost of any fundamental restructuring;
significant claims and settlements; and unrealised market gains/losses on
financial assets/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 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 and the integration of such acquisitions are excluded
from adjusted operating profit to provide useful information regarding the
underlying performance of the Group's operations.
Details of the SDIs for the six months ended 30 June 2025 and the comparative
period are given in note 3 to the Condensed Consolidated Interim Financial
Statements.
Reconciliation of Results to Adjusted Performance Measures (£m) 2025 H1 2025 H1 2025 H1 2024 H1 2024 H1 2024 H1
Results SDIs Adjusted Results SDIs Adjusted
Operating profit 246.8 29.5 276.3 232.4 32.7 265.1
Operating margin 14.8% 1.7% 16.5% 13.9% 2.0% 15.9%
Net financing costs (20.3) - (20.3) (26.2) 3.7 (22.5)
Profit before tax 226.5 29.5 256.0 206.2 36.4 242.6
Income tax expense (58.1) (7.7) (65.8) (52.9) (7.8) (60.7)
Profit for the period 168.4 21.8 190.2 153.3 28.6 181.9
Cash flow from operations 257.5 8.3 265.8 260.3 7.1 267.4
Free cash flow 47.7 8.3 56.0 83.5 7.1 90.6
Basic earnings per share 98.9p 13.6p 112.5p 87.8p 17.8p 105.6p
Diluted earnings per share 98.0p 13.5p 111.5p 87.2p 17.7p 104.9p
Reconciliation of Revenue Six months to 30 June 2025 Six months to 30 June 2024 Change
£m £m %
Reported revenue 1,672.7 1,669.5 0.2%
Less: Acquisitions/disposals/closures (2.7) (1.3)
Like-for-like revenue 1,670.0 1,668.2 0.1%
Impact of foreign exchange movements - (69.5)
Like-for-like revenue at constant currency 1,670.0 1,598.7 4.5%
Reconciliation of Net financial Debt to Adjusted EBITDA (£m) 30 June 2025 30 June 2024
Net debt 1,081.2 1,002.8
IFRS 16 lease liability (280.6) (294.6)
Net financial debt 800.6 708.2
2024 H2 2025 H1 2025 LTM 2023 H2 2024 H1 2024 LTM
Reported operating profit 303.3 246.8 550.1 271.2 232.4 503.6
Depreciation 73.6 72.8 146.4 76.1 70.8 146.9
Amortisation 8.0 8.2 16.2 9.5 9.3 18.8
EBITDA 384.9 327.8 712.7 356.8 312.5 669.3
SDIs 21.7 29.5 51.2 34.5 32.7 67.2
Adjusted EBITDA 406.6 357.3 763.9 391.3 345.2 736.5
Net financial debt / EBITDA 1x 1x
Constant Currency Reconciliations Six months to 30 June 2025 Six months to 30 June 2024 Change
£m £m %
Adjusted operating profit at actual rates 276.3 265.1 4.2%
Impact of foreign exchange movements - (13.3)
Adjusted operating profit at constant rates 276.3 251.8 9.7%
Adjusted diluted EPS at actual rates 111.5p 104.9p 6.3%
Impact of foreign exchange movements - (5.9p)
Adjusted diluted EPS at constant rates 111.5p 99.0p 12.6%
Diluted EPS at actual rates 98.0p 87.2p 12.4%
Impact of foreign exchange movements - (5.9p)
Diluted EPS at constant rates 98.0p 81.3p 20.5%
Principal Risks and Uncertainties
The Board has overall responsibility for the establishment and oversight of
the Group's risk management framework. The Board has an established,
structured approach to risk management, which includes continuously assessing
and monitoring the key risks and uncertainties of the business. Based on this
review, the Board identified the below risks outlined on pages 1.57 to 1.64 of
the Group's Annual Report for 2024, which is available from our website
at www.intertek.com (http://www.intertek.com/) :
Operational
• Reputation
• Customer service
• People retention
• Macroeconomic
• Health, safety and wellbeing
• Industry and competitive landscape
• IT systems and data security
• Contracting
Legal and Regulatory
• Geopolitical
• Business ethics
Financial
• Financial
The Board does not consider that there has been any significant change to the
nature of these risks and the key mitigating actions since the publication of
the Group's Annual Report for 2024.
The Business Review and Operating Review include consideration of the
significance of key uncertainties affecting the Group in the remaining six
months of the year.
Management Reports and Trading Updates
Intertek will issue a Trading Update in the fourth quarter of 2025.
Half Year Results
If you require a printed copy of this statement, please contact the Group
Company Secretary. This statement is available on www.intertek.com.
Legal Notice
This Half 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.
Responsibility Statement of the Directors in Respect of the Half Year Report
We confirm that to the best of our knowledge:
• The condensed interim financial statements have been prepared in
accordance with UK adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority and gives a
true and fair view of the assets, liabilities, financial position and profit
of the Group;
• The interim management report includes a fair review of the
information required by:
a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last Annual report that could do so.
On behalf of the Board of Intertek Group plc
André Lacroix Colm Deasy
Chief Executive Officer Chief Financial Officer
31 July 2025 31 July 2025
Independent Review Report to Intertek Group plc
Report on the Condensed Consolidated Interim Financial Statements
Our Conclusion
We have reviewed Intertek Group plc's condensed consolidated interim financial
statements (the "interim financial statements") in the 2025 Half Year Results
Announcement of Intertek Group plc for the 6 month period ended 30 June 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Consolidated Interim Statement of Financial Position as
at 30 June 2025;
· the Condensed Consolidated Interim Income Statement and the Condensed
Consolidated Interim Statement of Comprehensive Income for the period then
ended;
· the Condensed Consolidated Interim Statement of Cash Flows for the
period then ended;
· the Condensed Consolidated Interim Statement of Changes in Equity for
the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the 2025 Half Year Results
Announcement of Intertek Group plc have been prepared in accordance with UK
adopted International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the 2025 Half Year Results
Announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the Interim Financial Statements and the Review
Our Responsibilities and Those of the Directors
The 2025 Half Year Results Announcement, including the interim financial
statements, is the responsibility of, and has been approved by the directors.
The directors are responsible for preparing the 2025 Half Year Results
Announcement in accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority. In preparing
the 2025 Half Year Results Announcement, including the interim financial
statements, the directors are responsible for assessing the group's ability to
continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease operations, or have
no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the 2025 Half Year Results Announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
31 July 2025
Condensed Consolidated Interim Income Statement
For the six months ended 30 June 2025
Six months to 30 June 2025 Six months to 30 June 2024 (Unaudited)
(Unaudited)
Notes Adjusted Results Separately Disclosed Items* Total 2025 Adjusted Results Separately Disclosed Items* Total 2024
£m £m £m £m
Revenue 2 1,672.7 - 1,672.7 1,669.5 - 1,669.5
Operating costs (1,396.4) (29.5) (1,425.9) (1,404.4) (32.7) (1,437.1)
Group operating profit/(loss) 2 276.3 (29.5) 246.8 265.1 (32.7) 232.4
Finance income 1.8 - 1.8 1.0 - 1.0
Finance expense (22.1) - (22.1) (23.5) (3.7) (27.2)
Net financing costs (20.3) - (20.3) (22.5) (3.7) (26.2)
Profit/(loss) before income tax 256.0 (29.5) 226.5 242.6 (36.4) 206.2
Income tax (expense)/credit 4 (65.8) 7.7 (58.1) (60.7) 7.8 (52.9)
Profit/(loss) for the period 2 190.2 (21.8) 168.4 181.9 (28.6) 153.3
Attributable to:
Equity holders of the Company 180.0 (21.8) 158.2 170.2 (28.6) 141.6
Non-controlling interest 10.2 - 10.2 11.7 - 11.7
Profit/(loss) for the period 190.2 (21.8) 168.4 181.9 (28.6) 153.3
Earnings per share
Basic 5 112.5p 98.9p 105.6p 87.8p
Diluted 5 111.5p 98.0p 104.9p 87.2p
Dividends in respect of the period 57.3p 53.9p
* See Note 3
Condensed Consolidated Interim Statement of Comprehensive Income
For the six months ended 30 June 2025
Six months to 30 June 2025 (Unaudited) Six months to 30 June 2024 (Unaudited)
£m £m
Notes
Profit for the period 2 168.4 153.3
Other comprehensive income
Remeasurements on defined benefit pension schemes 6 1.0 1.2
Tax on comprehensive income items 3.8 1.6
Items that will never be reclassified to profit or loss 4.8 2.8
Foreign exchange translation differences on foreign operations (136.6) (18.2)
Net exchange gain/(loss) on hedges of net investments in foreign operations 62.0 (6.3)
Gain/(loss) on fair value of cash flow hedges (4.9) 0.5
Items that are or may be reclassified subsequently to profit or loss (79.5) (24.0)
Total other comprehensive expense for the period (74.7) (21.2)
Total comprehensive income for the period 93.7 132.1
Total comprehensive income for the period attributable to:
Equity holders of the company 84.3 115.5
Non-controlling interest 9.4 16.6
Total comprehensive income for the period 93.7 132.1
Condensed Consolidated Interim Statement of Financial Position
As at 30 June 2025
At 30 June 2025 (Unaudited) At 30 June 2024 (Unaudited) At 31 December 2024
£m £m (Audited)
£m
Notes
Assets
Property, plant and equipment 673.7 663.1 692.8
Goodwill 8 1,304.4 1,395.0 1,365.9
Other intangible assets 269.6 324.5 304.2
Trade and other receivables 14.8 18.5 15.4
Defined benefit pension asset 6 28.4 21.9 27.2
Deferred tax assets 35.5 31.9 34.5
Total non-current assets 2,326.4 2,454.9 2,440.0
Inventories* 19.9 18.4 19.0
Trade and other receivables* 763.1 781.2 754.9
Cash and cash equivalents 7 365.3 355.9 343.0
Current tax receivable 33.2 26.4 42.4
Total current assets 1,181.5 1,181.9 1,159.3
Total assets 3,507.9 3,636.8 3,599.3
Liabilities
Interest bearing loans and borrowings 7 (61.1) (47.8) (101.3)
Current taxes payable (45.0) (53.4) (67.2)
Lease liabilities (63.6) (68.6) (70.1)
Trade and other payables* (690.0) (698.9) (757.6)
Provisions* (25.0) (62.8) (53.9)
Total current liabilities (884.7) (931.5) (1,050.1)
Interest bearing loans and borrowings 7 (1,104.8) (1,016.3) (741.5)
Lease liabilities (217.0) (226.0) (229.5)
Deferred tax liabilities (60.3) (66.0) (69.9)
Defined benefit pension liabilities 6 (4.7) (2.7) (5.2)
Trade and other payables* (57.9) (31.7) (49.8)
Provisions* (7.9) (9.5) (8.4)
Total non-current liabilities (1,452.6) (1,352.2) (1,104.3)
Total liabilities (2,337.3) (2,283.7) (2,154.4)
Net assets 1,170.6 1,353.1 1,444.9
Equity
Share capital 1.6 1.6 1.6
Share premium 257.8 257.8 257.8
Other reserves (269.9) (156.4) (191.2)
Retained earnings 1,139.0 1,205.6 1,333.7
Total equity attributable to equity holders of the Company 1,128.5 1,308.6 1,401.9
Non-controlling interest 42.1 44.5 43.0
Total equity 1,170.6 1,353.1 1,444.9
* Working capital of £2.4m (H1 24: negative £4.2m; FY 24: negative £95.9m)
comprises the asterisked items in the above Statement of Financial Position
less IFRS16 Lease Receivable of negative £0.2m (H1 24: £0.9m; FY 24 £0.1m).
Condensed Consolidated Interim Statement of Changes in Equity
For the six months ended 30 June 2025
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 2024 1.6 257.8 (133.8) 6.3 1,191.5 1,323.4 36.7 1,360.1
Total comprehensive (expense)/income for the period
Profit - - - - 141.6 141.6 11.7 153.3
Other comprehensive (expense)/income - - (29.4) 0.5 2.8 (26.1) 4.9 (21.2)
Total comprehensive (expense)/income for the period - - (29.4) 0.5 144.4 115.5 16.6 132.1
Transactions with owners of the company recognised directly in equity
Contributions by and distributions to the owners of the company
Dividends paid - - - - (119.3) (119.3) (8.8) (128.1)
Purchase of own shares - - - - (15.7) (15.7) - (15.7)
Tax paid on share awards vested(1) - - - - (7.4) (7.4) - (7.4)
Equity-settled transactions - - - - 12.1 12.1 - 12.1
Income tax on equity-settled transactions - - - - - - - -
Total contributions by and distributions to the owners of the company - - - - (130.3) (130.3) (8.8) (139.1)
At 30 June 2024 (unaudited) 1.6 257.8 (163.2) 6.8 1,205.6 1,308.6 44.5 1,353.1
At 1 January 2025 1.6 257.8 (197.5) 6.3 1,333.7 1,401.9 43.0 1,444.9
Total comprehensive (expense)/income for the period
Profit - - - - 158.2 158.2 10.2 168.4
Other comprehensive (expense)/income - - (73.8) (4.9) 4.8 (73.9) (0.8) (74.7)
Total comprehensive (expense)/income for the period - - (73.8) (4.9) 163.0 84.3 9.4 93.7
Transactions with owners of the company recognised directly in equity
Contributions by and distributions to the owners of the company
Dividends paid - - - - (163.1) (163.1) (10.3) (173.4)
Purchase of own shares(2) - - - - (198.2) (198.2) - (198.2)
Tax paid on share awards vested(1) - - - - (9.9) (9.9) - (9.9)
Equity-settled transactions - - - - 13.2 13.2 - 13.2
Income tax on equity-settled transactions - - - - 0.3 0.3 - 0.3
Total contributions by and distributions to the owners of the company - - - - (357.7) (357.7) (10.3) (368.0)
At 30 June 2025 (unaudited) 1.6 257.8 (271.3) 1.4 1,139.0 1,128.5 42.1 1,170.6
( )
(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.
(2) Included within purchase of own shares in the period ended 30 June 2025 is
the purchase of 4.0 million ordinary shares at a cost of £187 million,
excluding transaction costs. These were part of the £350 million share
buyback programme announced in March 2025. All shares purchased have been
cancelled and the remaining shares are expected to be purchased by 31 December
2025.
The £163.1m dividend paid on 20 June 2025 represented a final dividend of
102.6p per ordinary share in respect of the year ended 31 December 2024 which
was approved and paid during the period. The £119.3m dividend paid on 21 June
2024 represented a final dividend of 74.0p per ordinary share in respect of
the year ended 31 December 2023 which was approved and paid during the period.
No ordinary shares were issued in the period to satisfy the vesting of share
awards.
Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 30 June 2025
Six months to 30 June 2025 (Unaudited) Six months to 30 June 2024 (Unaudited)
£m £m
Notes
Cash flows from operating activities
Profit for the period 2 168.4 153.3
Adjustments for:
Depreciation charge 72.8 70.8
Amortisation of software 8.2 9.3
Amortisation of acquisition intangibles 17.2 16.4
Equity-settled transactions 13.2 12.1
Net financing costs 20.3 26.2
Income tax expense 4 58.1 52.9
Profit on disposal of property, plant, equipment and software (0.4) -
Operating cash flows before changes in working capital and operating 357.8 341.0
provisions
Change in inventories (2.2) (1.3)
Change in trade and other receivables (50.0) (60.4)
Change in trade and other payables (17.5) (25.1)
Change in provisions (30.6) 6.1
Cash generated from operations 257.5 260.3
Interest and other finance expense paid (43.9) (27.6)
Income taxes paid (69.7) (59.1)
Net cash flows generated from operating activities* 143.9 173.6
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and software* 1.5 0.7
Interest received* 1.7 1.2
Acquisition of subsidiaries, net of cash received (8.2) (14.7)
Acquisition of property, plant, equipment and software* 9 (61.8) (55.6)
Net cash flows used in investing activities (66.8) (68.4)
Cash flows from financing activities
Purchase of own shares (198.2) (15.7)
Tax paid on share awards vested (9.9) (7.4)
Drawdown of borrowings 416.6 228.8
Repayment of borrowings (31.7) (82.6)
Repayment of lease liabilities* (37.6) (36.4)
Dividends paid to non-controlling interest (10.3) (8.8)
Equity dividends paid (163.1) (119.3)
Net cash flows used in financing activities (34.2) (41.4)
Net increase in cash and cash equivalents 42.9 63.8
Cash and cash equivalents at 1 January 7 336.5 298.6
Effect of exchange rate fluctuations on cash held 7 (18.0) (7.5)
Cash and cash equivalents at end of period 7 361.4 354.9
* Free cash flow of £47.7m (H1 24: £83.5m) comprises the asterisked items in
the above Statement of Cash Flows.
Adjusted cash flow from operations of £265.8m (H1 24: £267.4m) comprises
statutory cash flow from operations of £257.5m (H1 24: £260.3m) before cash
outflows relating to Separately Disclosed Items of £8.3m (H1 24: £7.1m).
Notes to the Condensed Consolidated Interim Financial Statements
1. Basis of Preparation
Reporting Entity
Intertek Group plc (the 'Company') is a company incorporated and domiciled in
the United Kingdom. The Condensed Consolidated Interim Financial Statements of
the Company as at and for the six months ended 30 June 2025 comprise the
Company and its subsidiaries (together referred to as the 'Group').
The Consolidated Financial Statements of the Group as at, and for the year
ended, 31 December 2024 are available upon request from the Company's
registered office at 33 Cavendish Square, London, W1G 0PS. An electronic
version is available from the Investors section of the Group website at
www.intertek.com (http://www.intertek.com) .
Statement of Compliance
These Condensed Consolidated Interim Financial Statements for the half-year
reporting period ended 30 June 2025 have been prepared in accordance with the
UK-adopted International Accounting Standards 34, 'Interim Financial
Reporting' ("IAS 34") and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority. They do not
include all of the information required for full annual financial statements
and should be read in conjunction with the Consolidated Financial Statements
of the Group as at and for the year ended 31 December 2024. These Condensed
Consolidated Interim Financial Statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006.
The Condensed Consolidated Financial Statements have also been prepared in
accordance with the accounting policies set out in the 2024 Annual Report and
have been prepared under the historical cost convention as modified by the
revaluation of certain financial assets and liabilities (including derivative
financial instruments) at fair value.
The comparative figures for the financial year ended 31 December 2024 are the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the Company's auditors and delivered to the Registrar of
Companies. The report of the auditor was (i) unqualified, (ii) did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
Material Accounting Policies
These Condensed Consolidated Interim Financial Statements are unaudited and,
except as described below, have been prepared on the basis of accounting
policies consistent with those applied in the Consolidated Financial
Statements for the year ended 31 December 2024.
There are no significant new accounting standards or amendments to accounting
standards that are effective for annual periods beginning on or after 1
January 2025 that have a material effect on the results of the Group.
Key Estimations and Uncertainties
The preparation of interim 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. There are no
critical accounting judgements.
In preparing these Condensed Consolidated Interim Financial Statements, the
nature of the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation were the same as
those that were applied to the Consolidated Financial Statements as at and for
the year ended 31 December 2024. During the six months ended 30 June 2025
management reassessed its estimates and judgements in respect of pensions
(note 6) and impairment (note 8(c)).
Risks and Uncertainties
The Operating Review includes consideration of the risks and uncertainties
affecting the Group in the remaining six months of the year.
The Board has reviewed the Group's financial forecasts up to 31 December 2026,
to assess both liquidity requirements and debt covenants. In addition, these
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). The Board remains satisfied with the Group's funding and
liquidity position, with the Group forecasts to remain within its committed
facilities and compliant with debt covenants even following the 30% downside
sensitivity. On the basis of its forecasts to 31 December 2026, both base case
and stressed, 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 Exchange
The assets and liabilities of foreign operations, including goodwill 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 expense
Actual Rates Cumulative average rates
Value of £1 30 June 2025 30 June 2024 31 December 2024 H1 25 H1 24 FY 24
US dollar 1.37 1.26 1.26 1.31 1.27 1.28
Euro 1.17 1.18 1.21 1.19 1.17 1.18
Chinese renminbi 9.84 9.18 9.18 9.50 9.13 9.21
Hong Kong dollar 10.78 9.86 9.76 10.23 9.89 9.99
Australian dollar 2.10 1.90 2.02 2.06 1.92 1.94
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 the similar nature of products and
services and the mid- to long-term structural growth drivers. When aggregating
operating segments into the five reportable 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.
Following the IFRIC agenda decision on segment reporting issued in July 2024,
the segmental disclosures have been aligned to the cost categorization in Note
4 of the Group's Annual Report for 2024 to include Employee costs, considered
to be a material item of expense for the Group. Consequently, the comparative
figures have been updated to reflect this information.
The results of the divisions are shown below:
Six months to 30 June 2025 Revenue from external customers Employee costs Depreciation and software amortisation Adjusted operating profit Separately disclosed items Operating profit
£m £m £m £m £m
£m
Consumer Products 481.7 (191.6) (24.7) 135.6 (3.3) 132.3
Corporate Assurance 251.2 (97.8) (5.9) 55.6 (11.9) 43.7
Health and Safety 163.7 (72.0) (10.9) 19.3 (2.3) 17.0
Industry and Infrastructure 417.3 (206.8) (16.0) 36.3 (7.0) 29.3
World of Energy 358.8 (173.5) (23.5) 29.5 (5.0) 24.5
Total 1,672.7 (741.7) (81.0) 276.3 (29.5) 246.8
Group operating profit 276.3 (29.5) 246.8
Net financing costs (20.3) - (20.3)
Profit before income tax 256.0 (29.5) 226.5
Income tax (expense)/credit (65.8) 7.7 (58.1)
Profit for the period 190.2 (21.8) 168.4
Six months to 30 June 2024 Revenue from external customers Employee costs Depreciation and software amortisation Adjusted operating profit Separately disclosed items Operating profit
£m £m £m £m £m
£m
Consumer Products 467.9 (192.7) (25.3) 122.8 (9.3) 113.5
Corporate Assurance 242.1 (96.1) (6.1) 52.3 (10.7) 41.6
Health and Safety 166.8 (73.2) (10.3) 20.3 (2.2) 18.1
Industry and Infrastructure 420.5 (209.2) (15.0) 36.8 (8.8) 28.0
World of Energy 372.2 (173.9) (23.4) 32.9 (1.7) 31.2
Total 1,669.5 (745.1) (80.1) 265.1 (32.7) 232.4
Group operating profit 265.1 (32.7) 232.4
Net financing costs (22.5) (3.7) (26.2)
Profit before income tax 242.6 (36.4) 206.2
Income tax (expense)/credit (60.7) 7.8 (52.9)
Profit for the period 181.9 (28.6) 153.3
3. Separately Disclosed Items (SDIs)
Six months to 30 June 2025 Six months to 30 June 2024
£m £m
Operating costs
Amortisation of acquisition intangibles (a) (17.2) (16.4)
Acquisition and integration costs (b) (1.3) (1.8)
Restructuring costs (c) (11.0) (10.6)
Significant claims and settlements (d) - (3.9)
Total operating costs (29.5) (32.7)
Net financing costs (e) - (3.7)
Total before income tax (29.5) (36.4)
Income tax credit on Separately Disclosed Items 7.7 7.8
Total (21.8) (28.6)
Refer to Presentation of Results section for further details on SDIs.
(a) The amortisation of acquisition intangibles relates to customer
relationships, trade names, technology and non-compete covenants acquired.
(b) Acquisition and integration costs relating to acquisition activity in
the period and integration of prior period acquisitions were £1.3m (H1 24:
£1.8m).
(c) During 2022, the Group initiated the first year of a cost reduction
programme. In six months to June 2025 costs of £11.0m (H1 24: £10.6m)
included consolidating sites and offices, streamlining headcount, Group-wide
technology upgrades and related asset write-offs.
(d) Significant claims and settlements relate to commercial claims that
are separately disclosable due to their size and nature. The associated claims
have now settled.
(e) Net financing costs of £nil (H1 24: £3.7m) relates to unwinding of
discount and changes in fair value of contingent consideration in relation to
acquisitions from prior periods.
4. Income Tax Expense
Income tax expense is recognised based on management's best estimate of the
weighted average annual income tax rate expected for the full financial year
applied to the pre-tax income of the interim period in respect of the adjusted
results. The income tax expense for the adjusted results for the six months
ended 30 June 2025 is £65.8m (H1 24: £60.7m). The Group's adjusted
consolidated effective tax rate for the six months ended 30 June 2025 is 25.7%
(H1 24: 25.0%). The income tax expense for the total results for the six
months ended 30 June 2025 is £58.1m (H1 24: £52.9m). The Group's
consolidated effective tax rate for the six months ended 30 June 2025 is 25.6%
(H1 24: 25.7%).
Differences between the consolidated effective tax rate of 25.7% and the
notional statutory UK rate of 25.0% include but are not limited to: the mix of
profits; the effect of tax rates in foreign jurisdictions; non-deductible
expenses; the effect of movements in unrecognised deferred tax assets;
movements in the provision for uncertain tax positions; withholding tax on
intra-group dividends; tax exempt income; and under/over provisions in
previous periods.
Pillar 2 legislation, implementing a domestic Top-up tax and a multinational
Top-up tax, applies to Intertek for the six months to 30 June 2025 and levies
an effective minimum tax rate of 15%. Top-up tax liability included in the
income tax expense of £58.1m is £0.2m (H1 2024: £nil). Intertek has
applied the exception under IAS 12 to recognising and disclosing information
about deferred tax assets and liabilities related to top-up income taxes.
5. Earnings Per Share (EPS)
Six months to 30 June 2025 Six months to 30 June 2024
£m £m
Based on the profit for the period:
Profit attributable to ordinary shareholders 158.2 141.6
Separately Disclosed Items after tax (note 3) 21.8 28.6
Adjusted earnings 180.0 170.2
Number of shares (millions):
Basic weighted average number of ordinary shares 160.0 161.2
Potentially dilutive share awards 1.5 1.1
Diluted weighted average number of shares 161.5 162.3
Basic earnings per share 98.9p 87.8p
Potentially dilutive share awards (0.9p) (0.6p)
Diluted earnings per share 98.0p 87.2p
Adjusted basic earnings per share 112.5p 105.6p
Potentially dilutive share awards (1.0p) (0.7p)
Adjusted diluted earnings per share 111.5p 104.9p
6. Pension Schemes
A full triennial actuarial valuation for the United Kingdom Scheme was carried
out as at 31 March 2022. The next triennial valuation as at 31 March 2025 is
currently ongoing.
The Group obtained updated actuarial valuations to 31 May 2025, the asset and
liability values have been reviewed and have not moved materially in the month
to 30 June 2025. A net actuarial gain before taxation of £1.0m (H1 24:
£1.2m) has been recognised in the consolidated statement of comprehensive
income. The net pension asset stands at £28.4m for the UK pension scheme (31
December 2024: £27.2m) and a net pension liability of £4.7m for the Swiss
pension scheme as at 30 June 2025 (31 December 2024: £5.2m).
7. Analysis of Net Debt
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Cash and cash equivalents per the Statement of Financial Position 365.3 355.9 343.0
Overdrafts (3.9) (1.0) (6.5)
Cash per the Statement of Cash Flows 361.4 354.9 336.5
The components of net debt are outlined below:
1 January 2025 Cash flow Non-cash adjustments Exchange adjustments 30 June 2025
£m £m £m £m £m
Cash 336.5 42.9 - (18.0) 361.4
Borrowings:
Revolving credit facility US$850m 2030 (20.0) (416.6) - 8.2 (428.4)
Revolving credit facility £350m 2027 - - - - -
Senior notes US$120m 2025 (95.4) 31.8 - 5.3 (58.3)
Senior notes US$75m 2026 (59.6) - - 5.0 (54.6)
Senior notes US$150m 2027 (119.2) - - 10.0 (109.2)
Senior notes US$165m 2028 (131.2) - - 11.0 (120.2)
Senior notes US$165m 2029 (131.2) - - 11.0 (120.2)
Senior notes US$160m 2030 (127.1) - - 10.6 (116.5)
Senior notes EUR€120m 2026 (99.5) - - (2.8) (102.3)
Senior notes EUR€25m 2027 (20.7) - - (0.6) (21.3)
Senior notes EUR€40m 2028 (33.2) - - (0.9) (34.1)
Other* 0.8 (0.1) 2.3 0.1 3.1
Total borrowings (836.3) (384.9) 2.3 56.9 (1,162.0)
Total financial net debt (499.8) (342.0) 2.3 38.9 (800.6)
Lease liability (299.6) 37.6 (32.1) 13.5 (280.6)
Total net debt (799.4) (304.4) (29.8) 52.4 (1,081.2)
*Other borrowings include other uncommitted borrowings of £0.8m (1 Jan 2025:
£0.7m) and facility fees of £3.9m (1 Jan 2025: £1.5m).
Total undrawn committed borrowing facilities as at 30 June 2025 were £540.7m
(31 December 2024: £655.7m).
30 June 2025 30 June 2024 31 December 2024
£m £m £m
Borrowings due in less than one year 57.2 46.8 94.8
Borrowings due in one to two years 693.5 62.8 158.6
Borrowings due in two to five years 410.6 826.2 455.1
Borrowings due in over five years 0.7 127.3 127.8
Total borrowings 1,162.0 1,063.1 836.3
Key Facilities
The Group has a US$850m multi-currency revolving credit facility which was
refinanced in May 2025. The facility has a five-year term and is due to mature
in May 2030. Drawings under the facility as at the 30 June 2025 were £428.4m
(31 December 2024: £20m).
In addition, in May 2025 the Group entered into a £350m multi-currency
revolving credit facility for 2 years, due to mature in May 2027. Drawings
under the facility as at 30 June 2025 were £nil.
In February 2025, US$40m Senior notes fell due and were repaid.
Further details of the Group's borrowing facilities were disclosed in note 14
to the 2024 Annual Report.
Fair Values
The carrying value of interest-bearing loans and borrowings is £1,165.9m. The
fair value, based on the present value of the future principal and interest
cash flows discounted at the market rate at reporting date, was £1,090.4m.
The carrying values of trade and other payables are considered approximate to
their fair values.
The carrying value of derivative assets/liabilities (namely foreign currency
forwards and cross currency interest rate swaps) is equal to their fair value.
The fair value of foreign currency forwards is estimated using present value
of future cash flows based on the forward exchange rates at the balance sheet
date. Derivative assets of £0.5m are included within trade and other
receivables (H1 24: £0.5m derivative liabilities included within trade and
other payables).
The cross-currency interest rate swaps designated in hedge relationships are
disclosed within other payables in the statement of financial position.
Derivative assets of £1.7m are included within trade and other receivables
(H1 24: £0.3m derivative liabilities included within trade and other
payables).
The fair value of cash and cash equivalents is based on the sterling
equivalent value of the Group's cash balances at the market rate, which at
reporting date was £365.3m. There is no material difference between the
carrying values of trade and other receivables and their fair values, due to
their short-term duration. There is no concentration of credit risk with
respect to trade receivables as the Group has a large number of customers who
are internationally dispersed.
8. Acquisition of New Businesses
(a) Acquisitions
On 30 April 2025, the Group acquired Tecnologia e Qualidade de Sistemas em
Engenharia Ltda ("TESIS"), a leading provider of building products testing and
assurance services, based in São Paulo, Brazil, for a purchase price of
£11.2m. Purchase consideration net of cash acquired was £11.0m. The purchase
price includes cash consideration of £8.2m and further contingent
consideration of £3.0m. The cash outflow in the period associated with this
acquisition was £8.2m.
The acquisition of TESIS will expand Intertek's leading Business and
Construction Total Quality Assurance business into Brazil's construction
industry. TESIS' capabilities are complementary to Intertek's comprehensive
product-related testing and certification capabilities in North America,
accelerating demand for the Group's ATIC solutions, powered by Intertek's
Science-based Customer Excellence Advantage.
Net assets acquired and fair value adjustments are provisional and amendments
may be made to these figures in the 12 months following the date of
acquisition with a corresponding adjustment to the goodwill recognised.
(b) Prior Period Acquisitions
£nil (H1 24: £nil) was paid during the period in respect of prior period
acquisitions.
(c) Impairment
Goodwill generated from past acquisitions has been tested annually as required
by accounting standards. No impairment triggers were identified during the
period and as such no impairment charge was recorded (H1 24: £nil).
(d) Reconciliation of Goodwill
£m
Goodwill at 1 January 2025 1,365.9
Additions 10.9
Fair value adjustments -
Foreign exchange (72.4)
Goodwill at 30 June 2025 1,304.4
£m
Goodwill at 1 January 2024 1,385.8
Additions 15.6
Fair value adjustments (2.1)
Foreign exchange (4.3)
Goodwill at 30 June 2024 1,395.0
(e) Impact of Acquisitions on the Group Results
The revenue and profit for the period from 1 January 2025 to the date of
acquisition and the impact on the Group's revenue and profit for the period
from the date of acquisition to 30 June 2025 were not significant.
9. Property, Plant, Equipment and Computer Software
(a) Property, Plant, Equipment Additions
During the six months ended 30 June 2025, the Group acquired property, plant
and equipment with a cost of £51.5m (H1 24: £44.0m; year ended 31 December
2024: £113.2m).
During the six months ended 30 June 2025, the Group acquired £0.1m of
property, plant and equipment through business combinations (H1 24: £1.5m;
year ended 31 December 2024: £1.7m). At 30 June 2025, the IFRS 16 right of
use asset is £259.2m (H1 24: £271.4m; year ended 31 December 2024:
£277.0m).
(b) Computer Software Additions
During the six months ended 30 June 2025, the Group acquired computer software
with a cost of £10.3m (H1 24: £11.6m; year ended 31 December 2024: £21.7m).
During the six months ended 30 June 2025, the Group did not acquire computer
software through business combinations (H1 24: £nil; year ended 31 December
2024: £nil).
(c) Capital Commitments
Contracts for capital expenditure which are not provided in these accounts
amounted to £18.3m (H1 24: £19.4m).
10. Related Parties
There are no material changes in related parties or in related party
transactions from those described in the 2024 Annual Report.
11. Subsequent Events
There are no post balance sheet events to report.
12. Approval
The Condensed Consolidated Interim Financial Statements were approved by the
Board on 31 July 2025.
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