Intertek Group (ITRK) Trading Update summary

Trading performance and revenue growth

• Revenue for Jan–Apr 2025 reached £1,093.9m, up 4.6% at constant currency and 1.2% at actual rates, with 4.5% like-for-like growth at constant currency, led by Consumer Products (+7.8%) and Corporate Assurance (+8.9%).

• Consumer Products saw double-digit gains in soft lines and high single-digit growth in GTS; Corporate Assurance growth was led by Business Assurance.

• Health and Safety delivered 3.5% like-for-like growth, Industry and Infrastructure 2.7%, and World of Energy remained stable, with some baseline effects and regional slowdowns.

• Recent acquisitions, such as Tesis in Brazil and Base Met Labs, are performing well and expanding the portfolio in high-growth sectors.

• Strong free cash flow enabled ongoing investments and a £350m share buyback, with £75.3m already repurchased.

Strategic initiatives, innovation, and market positioning

• Launched SupplyTek, a new suite of consulting, training, and assurance solutions, and new services for EU Deforestation Regulation compliance.

• Business model is capital-light, highly diversified, and resilient, with revenue streams across five divisions and more than 15 industries in over 100 countries.

• Four bolt-on acquisitions since April 2023 expanded presence in environmental analysis, training, minerals, and building products testing.

• Opened new regional HQ in Riyadh, expanded labs in Cambridge and Bordeaux, and launched a UK Centre of Excellence for consumer goods testing.

• Gaining market share in soft lines, hard lines, and electrical, with strong new account wins and performance ahead of industry trends.

Financial guidance and capital allocation

• 2025 guidance reconfirmed: mid-single digit like-for-like revenue growth at constant currency, margin progression, and strong cash generation.

• Targeting margin progression toward 18.5%+, strong free cash flow, and disciplined investment, with CapEx of £135–145 million and net debt expected at £470–520 million pre-buyback.

• Announced a £350 million share buyback program, with £75.3 million already executed.

• Capital allocation priorities: organic growth, shareholder returns, selective M&A, and maintaining a flexible balance sheet.

• FX headwinds expected to reduce full-year revenue and earnings by 250 and 350 basis points, respectively.