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Intertek on track for 'resilient' FY performance despite revenue dip
24th Nov 2020 08:05
(Sharecast News) - Quality assurance provider Intertek said on Tuesday that revenues had slumped in the four months ended 31 October but stated that it was still on track to turn in a "resilient" full-year trading performance.
Intertek saw revenues fall from £1.04bn to £941.0m during the period, or a 9.9% decline, while like-for-like revenues were down 10% at £939.6m.
For the full-year, Intertek expects to deliver a mid-single-digit decline in like-for-like revenue at constant currency in its products division. However, in the mid-to-long-term, Intertek anticipates the division will benefit from structural growth drivers.
The FTSE-100 listed group also highlighted that net debt was likely to be in the region of £570.0-590.0m at year-end, lower than 2019, demonstrating the "strength" of its "high-quality and highly cash generative earnings model" amid the Covid-19 pandemic.
Chief executive André Lacroix said: "With our industry-leading ATIC capability and expertise, innovation and insight, Intertek is uniquely positioned to seize the compelling growth opportunities and to benefit from the GDP+, like-for-like revenue growth prospects in the Quality Assurance Industry in the medium to long-term.
"In short, the pandemic has brought to life as never before the importance of Intertek's purpose-led role in society."
As of 0825 GMT, Intertek shares had slipped 3.85% to 5,838.50p.
Intertek saw revenues fall from £1.04bn to £941.0m during the period, or a 9.9% decline, while like-for-like revenues were down 10% at £939.6m.
For the full-year, Intertek expects to deliver a mid-single-digit decline in like-for-like revenue at constant currency in its products division. However, in the mid-to-long-term, Intertek anticipates the division will benefit from structural growth drivers.
The FTSE-100 listed group also highlighted that net debt was likely to be in the region of £570.0-590.0m at year-end, lower than 2019, demonstrating the "strength" of its "high-quality and highly cash generative earnings model" amid the Covid-19 pandemic.
Chief executive André Lacroix said: "With our industry-leading ATIC capability and expertise, innovation and insight, Intertek is uniquely positioned to seize the compelling growth opportunities and to benefit from the GDP+, like-for-like revenue growth prospects in the Quality Assurance Industry in the medium to long-term.
"In short, the pandemic has brought to life as never before the importance of Intertek's purpose-led role in society."
As of 0825 GMT, Intertek shares had slipped 3.85% to 5,838.50p.