Bringing quality, safety and sustainability
GROUP REVENUE GROWTH (AT CONSTANT RATES)
Continued progress in revenue, margin, ROIC and cash reflecting the Group’s performance management discipline, focused on margin-accretive revenue growth and cash conversion.
- 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
- Definitions of the above metrics and constant currency are set out on page 22 of the Annual Report 2019.
- 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.
- 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.
- 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).
the Core to strengthen
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.
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
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
Delivering efficiency gains for Caleb Brett customers
Delivering qualitative and quantitative analytical assessment services to the oil and gas, chemical and other commodities markets
Cloud-based solution providing customers with real-time updates on their export documentation progress
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
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
Delivering assurance that critical concrete infrastructures remain robust over their entire lives
and high-margin areas
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.
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 approachDownload the case study
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.”
create new markets
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
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.
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.”