Intertek Group Plc (ITRK.L), a provider of quality and safety services, Monday reported higher profit for its fiscal year 2012 benefited by strong growth in all segments as well as the acquisition of Moody International business. The company also hiked its dividend. Separately, Intertek announced the completion of two acquisitions for 7 million pounds.
For the year, pre-tax profit increased 21 percent to 256.6 million pounds from 213.0 million pounds last year. Adjusted pre-tax profit, which excluded certain items, grew 19 percent to 308.4 million pounds from last year's 260.1 million pounds.
Profit attributable to equity holders of the company increased to 173.8 million pounds from 138.8 million pounds in the previous year. On a per share basis, net income was 106.7 pence, 25 percent higher than last year's 85.3 pence. Adjusted earnings per share grew 22 percent to 131.2 pence.
Annual revenue rose 17 percent to 2.05 billion pounds from 1.75 billion pounds in the prior year. At constant exchange rates, revenues climbed 18 percent principally due to strong organic growth and strong growth in the acquired Moody International business. Constant currency organic revenue growth was 8.6 percent with all divisions contributing to this growth.
Operating margin in the year grew to 16.3 percent from last year's 16.1 percent.
Chief Executive Officer Wolfhart Hauser said, "We report exceptional growth in the energy infrastructure market, where we have successfully integrated our acquisition of Moody International, in addition to strong growth across all divisions... Strong growth came from Asia, Australasia, the Middle East and the Americas. In our underperforming areas, principally some locations within Europe, we are taking action to align our portfolio with our strategic growth priorities."
Further, the company said that its board will propose a final dividend of 28 pence per share at the Annual General Meeting on May 17, bringing the total dividend for the year to 41 pence per share, an increase of 22 percent.
Looking ahead, Hauser said, "We continue to pursue operational efficiencies and establish platforms supporting the Group's ability to capture growth in 2013 and beyond, whilst also progressing the Group's margin in 2012. Whilst economic conditions remain uncertain, we are confident in the opportunities embedded across our portfolio of industries and countries. We therefore will continue to follow our established growth strategy which we expect to continue to deliver high single digit organic revenue growth, margin enhancement and value adding acquisitions."
Regarding its latest acquisitions, Intertek said it has acquired 85 percent of the issued capital of E-TEST Laboratorio de Ensaios e Tecnologia Ltda or E-Test, a Brazilian toy and consumer products testing laboratory, for 6.6 million pounds in cash.
E-Test is located near Sao Paulo with 33 full-time employees. The company will form part of Intertek's Toys & Hardlines Business Line within the Consumer Goods division.
Intertek has also acquired Food Safety Assessment or FSA, a food assurance services company, based in Johannesburg, South Africa, for 0.5 million pounds in cash. The deal extends Intertek's capabilities in its Food & Agri Business Line within the Industry & Assurance division.
In London, Intertek shares are currently trading at 3,385 pence, up 5 pence or 0.15 percent.
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