online annual review 2019

Bringing quality, safety and sustainability
to life

GROUP REVENUE GROWTH (AT CONSTANT RATES)
+4.8% £2,987m

Financial highlights

Financial highlights

Continued progress in revenue, margin, ROIC and cash reflecting the Group’s performance management discipline, focused on margin-accretive revenue growth and cash conversion.

£2,987M Revenue (2018: £2,801m)
£2,926M Organic revenue1 (2018: £2,783m)
£513M Adjusted operating profit1.2 (2018: £482m)
£486M Statutory operating profit3 (2018: £436m)
17.2% Adjusted operating margin1.2 (2018: 17.2%)
16.3% Statutory operating margin3 (2018: 15.6%)
211.7P Adjusted diluted earnings per share1.2 (2018: 198.3p)
192.6P Statutory diluted earnings per share3 (2018: 174.7p)
£380M Free cash flow (2018: £351m)
105.8P Dividend per share4 (2018: 99.1p)
22.8% Return On Invested Capital1,2 (2018: 20.6%)
  • Group revenue growth of +4.8% at constant rates, +6.6% at actual rates
  • Good organic revenue growth at constant rates of 3.3%: Products +2.3%, Trade +4.1%, Resources +5.7%
  • Portfolio strength and performance management discipline driving margin progression: adjusted +10bps at constant rates, stable at actual rates
  • Adjusted operating profit of £513m, +5.2% at constant rates and +6.5% at actual rates
  • Statutory operating profit of £486m, +10.2% at constant rates and +11.4% at actual rates
  • Strong adjusted diluted EPS growth: adjusted +5.2% at constant rates, +6.8% at actual rates; statutory +8.9% at constant rates, +10.2% at actual rates
  • Full-year dividend per share of 105.8p, an increase of 6.8%
  • Free cash flow of £380m, +8.4% year-on-year
  • Statutory net profit after tax of £334m, +8.1% at constant rates and +9.3% at actual rates
  • ROIC of 22.8%, +150bps at constant rates and +220bps at actual rates
  1. Definitions of the above metrics and constant currency are set out on page 22 of the Annual Report 2019.
  2. Adjusted operating profit, adjusted diluted earnings per share (‘EPS’) are non-GAAP measures. Adjusted measures are stated on an IAS 17 basis and before Separately Disclosed Items, which are described in note 3 to the financial statements. Reconciliations between statutory and adjusted measures, as well as return on invested capital and cash conversion, are shown in the Financial review within the Annual Report 2019.
  3. The Group adopted IFRS 16 on 1 January 2019; as such the statutory measures are on an IFRS 16 basis for 2019 and IAS 17 basis for 2018. Reconciliations between IAS 17 and IFRS 16 measures are disclosed in note 24 to the financial statements on pages 153 to 158 of the Annual Report 2019.
  4. Dividend per share for 2019 is based on the interim dividend paid of 34.2p (2018: 31.9p) plus the proposed final dividend of 71.6p (2018: 67.2p).
Download the financial review
MEssage from the CEO

Our strategic
progress

André Lacroix
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Innovation in action

Innovative solutions
to accelerate growth

CORE

Innovations from
the Core to strengthen
existing services

Core

Innovations from the Core to strengthen existing services

What does Core mean?

From our `Core’ focus, we seek to build on the strengths of our existing products and services, continually improving them for our existing markets and customers.

We are able to strengthen existing services based on our deep client relationships. We conduct more than 7,000 client interviews every month, which provide us with valuable insight. Our decentralised organisation and our entrepreneurial culture enable us to develop solutions that meet our clients’ expectations. We have clear processes to develop innovations locally and to launch them globally.
Products

Our Products-related businesses consist of business lines that are focused on ensuring the quality and safety of physical components and products, as well as minimising risk through assessing the operating processes and quality management systems of our customers.

  • i2q inspection solution

    Using Big Data to generate advanced insights for customers

  • STEM Toy Assurance

    Verifying that our customers' toys have met stringent quality and safety standards

  • Voice of the consumer

    Insights to deliver improved products to their consumers faster

  • 360º brand assurance and E-reputation

    End-to-end mapping of our customers’ E-reputation and operational data to deliver tailored brand assurance reports

  • Proprietary toys breathing apparatus

    Helping to protect children’s safety

Trade

Our Trade division consists of three global business lines with differing services and customers, but similar mid- to long-term structural growth drivers.

  • Fuel-tank inspection robot

    A new and bespoke inspection process for customers

  • Stockpile measurement

    Delivering efficiency gains for Caleb Brett customers

  • Caleb Brett

    Delivering qualitative and quantitative analytical assessment services to the oil and gas, chemical and other commodities markets

  • iDocs

    Cloud-based solution providing customers with real-time updates on their export documentation progress

  • Mobile testing

    Mobile laboratories in Mexico providing the client with flexible retail fuel testing

  • Pioneering hydrocarbon testing

    The launch of the first independent crude oil, fuel testing and petroleum products laboratory in Iraq

Resources

Our Resources division consists of two business lines with differing services and customers, but both demonstrating similar cyclical growth characteristics.

  • Drones deliver industrial asset inspection services

    Safely and efficiently collecting data customers need to ensure continued asset operation

  • Greenlink interconnector project

    Intertek’s experts providing vital marine environmental support

  • Ultrasonic sensors with Aware™

    The Aware software empowers our customers to predict equipment corrosion rates in real time

  • Extreme conditions simulation

    Helping clients to make informed decisions so they can operate their assets safely and reliably

  • Helicopter underwater escape simulations

    State-of-the-art training to support oil and gas customers

  • Concrete sensors

    Delivering assurance that critical concrete infrastructures remain robust over their entire lives

Case study

STEM TOY MARK Supporting STEM skills development by guaranteeing the safety and quality of educational toys.

Download the case study
ADJACENT

Innovations in
adjacent high-growth
and high-margin areas

Adjacent

Innovations in adjacent high-growth and high-margin areas

What does Adjacent mean?

We aim to develop new products and services for rapid-growth, high-margin markets that are `Adjacent’ to those we already serve. We have launched innovative solutions relating to Big Data, Autonomous vehicles, Internet of Things (‘IoT’), Cybersecurity, Artificial Intelligence (‘AI’), Robotics and the Environment.

Intertek Interpret

uses near infrared spectrum analysis to predict the physical properties of crude oil

Intertek KJ Tech

offers road testing, allowing auto manufacturers to understand how their vehicles perform in real-life situations

Cyber Assured Certification Programme

Intertek’s cybersecurity services address the growing threats as part of a systemic risk-mitigation approach

Download the case study
Intertek PipeAware™

is a software solution that allows customers to access their asset inspection data in real time

Check Safety First

provides leading hospitality assurance services for the travel and tourism industry

Designed for the rapidly expanding world of consumer IoT products, Cyber Assured offers unique continuous vulnerability monitoring to give consumers peace of mind.”
Wayne Stewart VP Cyber Security, Canada
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BREAKTHROUGH

Breakthrough
innovations to
create new markets

BREAKTHROUGH

Breakthrough innovations to create new markets

What does Breakthrough mean?

We aim to create `Breakthrough’ products and services that enable us to create new attractive markets and target emerging customer needs. Technology-based innovations are also key to our strategy, with Intertek InLight, a platform offering our clients greater visibility of their supply chain risks, and Intertek Alchemy, the leading SaaS solution provider to expand our global assurance offering into People Assurance services.

Total Quality Assurance

helps clients to manage the complexity of their supply chains through an end-to-end approach to quality assurance. Intertek provides superior customer service with an industry-leading portfolio of Assurance, Testing, Inspection and Certification solutions.

Total Sustainability Assurance

is a pioneering initiative that provides an end-to-end, independent systemic sustainability programme from both an operational and corporate perspective.

Download the case study
People Assurance

Intertek’s People Assurance solutions deliver the tools to build, maintain and protect brands. Intertek Alchemy helps companies equip their frontline employees with the knowledge and confidence they need to elevate safety, productivity, culture and compliance. The unique Wisetail learning-management system helps clients across the world to engage, energise and empower their employees.

Intertek InLight

provides the platform, expertise and people to enable organisations to better understand their supply chain risks and protect their brand.

Download the case study
InLight allows our partners to better manage their suppliers’ compliance, giving them more time to focus on mitigating risk and doing business the right way.”
Catherine Beare Senior Director,
Supply Chain Assurance
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Downloads

Download the
full reports

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Annual Report (PDF 1.2mb)
Annual report
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Sustainability Report (PDF 1.2mb)
Sustainability report

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