Latest news with #IntertekGroup
Yahoo
4 days ago
- Business
- Yahoo
Intertek Group PLC (IKTSF) (H1 2025) Earnings Call Highlights: Strong Revenue Growth Amid ...
Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Intertek Group PLC (IKTSF) reported its ninth consecutive six-month period of mid-single-digit like-for-like revenue growth. The company achieved a strong operating margin increase of 80 basis points, with a cash conversion rate of 118%. Intertek Group PLC (IKTSF) increased its interim dividend in line with EPS growth, reflecting confidence in future performance. The company has a strong M&A track record, having made seven acquisitions in the last five years, which are performing well. Intertek Group PLC (IKTSF) has a high customer retention rate, driven by superior customer service and strong client relationships. Negative Points Revenue growth at actual rates was only 0.2% due to the strengthening of sterling against major currencies, impacting growth by 430 basis points. The Health and Safety division experienced a decline in profitability due to mix impacts, with a margin decrease of 10 basis points year-on-year. The World of Energy division saw a margin decrease of 60 basis points, affected by a mix in revenue performance. Currency volatility is expected to reduce full-year revenue and operating profit by approximately 350 and 500 basis points, respectively. The company's restructuring program, while beneficial, indicates ongoing cost management challenges, with expected savings of only $3 million in the second half of 2025. Q & A Highlights Warning! GuruFocus has detected 3 Warning Sign with IKTSF. Q: Can you provide more details on the financial performance and growth expectations for 2025? A: The group delivered a strong financial performance in H1 2025, with total revenue growth of 4.5% at constant currency. Operating profit increased by 9.7% to 276.3 million, with a margin of 16.5%. We expect mid-single-digit like-for-like revenue growth for the full year, driven by high single-digit growth in consumer products and corporate assurance, and low single-digit growth in health and safety, industry and infrastructure, and the world of energy. (Unidentified_2) Q: How is the consumer products division performing, and what are the growth drivers? A: The consumer products division delivered a revenue of 482 million, up 7.5% year-on-year. Growth was driven by double-digit like-for-like growth in softlines and GTS, and high single-digit growth in electrical. The division benefits from structural growth drivers such as SKU expansion, higher quality demands, and increased testing requirements. We expect high single-digit like-for-like revenue growth for 2025. (Unidentified_1) Q: What are the strategic priorities for capital allocation and shareholder returns? A: Our capital allocation strategy focuses on supporting organic growth with CapEx investments of 4-5% of revenues, rewarding shareholders with a progressive dividend policy targeting a 65% payout ratio, and pursuing disciplined M&A opportunities. We also announced a 350 million share buyback program to return surplus cash to shareholders. (Unidentified_1) Q: Can you elaborate on the performance and outlook for the electrical business? A: The electrical business, part of the consumer products division, has shown excellent growth with a CAGR of 7% from 2015 to 2024. It benefits from the electrification of society and regulatory upgrades. We are confident in continued growth, supported by our global footprint and investments in high-growth, high-margin areas like HVACs, renewables, and grid management. (Unidentified_1) Q: What are the key growth opportunities in India, and how is the business positioned there? A: In India, we have built a well-diversified business with market leadership in most lines. Our operations cover 18 sites, and we have achieved a revenue growth CAGR of 9.5% over the past decade. India offers significant growth potential due to its fast-growing economy and increasing demand for quality, safety, and sustainability. We expect continued high performance and are investing in growth initiatives like the Center of Excellence in Geron. (Unidentified_1) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Intertek Group First Half 2025 Earnings: EPS: UK£0.99 (vs UK£0.88 in 1H 2024)
Intertek Group (LON:ITRK) First Half 2025 Results Key Financial Results Revenue: UK£1.67b (flat on 1H 2024). Net income: UK£158.2m (up 12% from 1H 2024). Profit margin: 9.5% (up from 8.5% in 1H 2024). EPS: UK£0.99 (up from UK£0.88 in 1H 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Intertek Group Earnings Insights Looking ahead, revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Professional Services industry in the United Kingdom. Performance of the British Professional Services industry. The company's shares are down 6.1% from a week ago. Valuation If you are seeking undervalued stocks, our analysis of 6 valuation measures indicates Intertek Group could be a good place to look. Discover what analysts are forecasting and how the current share price shapes up by clicking here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
29-06-2025
- Business
- Yahoo
Here's What Intertek Group's (LON:ITRK) Strong Returns On Capital Mean
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Ergo, when we looked at the ROCE trends at Intertek Group (LON:ITRK), we liked what we saw. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Intertek Group: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.22 = UK£555m ÷ (UK£3.6b - UK£1.1b) (Based on the trailing twelve months to December 2024). So, Intertek Group has an ROCE of 22%. In absolute terms that's a great return and it's even better than the Professional Services industry average of 17%. View our latest analysis for Intertek Group Above you can see how the current ROCE for Intertek Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Intertek Group . Intertek Group deserves to be commended in regards to it's returns. The company has employed 33% more capital in the last five years, and the returns on that capital have remained stable at 22%. Now considering ROCE is an attractive 22%, this combination is actually pretty appealing because it means the business can consistently put money to work and generate these high returns. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger. In short, we'd argue Intertek Group has the makings of a multi-bagger since its been able to compound its capital at very profitable rates of return. Despite the good fundamentals, total returns from the stock have been virtually flat over the last five years. That's why we think it'd be worthwhile to look further into this stock given the fundamentals are appealing. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Intertek Group plc (LON:ITRK) Pays A UK£1.026 Dividend In Just Three Days
Readers hoping to buy Intertek Group plc (LON:ITRK) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Intertek Group's shares before the 29th of May to receive the dividend, which will be paid on the 20th of June. The company's next dividend payment will be UK£1.026 per share, on the back of last year when the company paid a total of UK£1.57 to shareholders. Looking at the last 12 months of distributions, Intertek Group has a trailing yield of approximately 3.3% on its current stock price of UK£47.58. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Intertek Group paid out 73% of its earnings to investors last year, a normal payout level for most businesses. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Fortunately, it paid out only 45% of its free cash flow in the past year. It's positive to see that Intertek Group's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for Intertek Group Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Intertek Group earnings per share are up 2.2% per annum over the last five years. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Intertek Group has lifted its dividend by approximately 12% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. From a dividend perspective, should investors buy or avoid Intertek Group? While earnings per share growth has been modest, Intertek Group's dividend payouts are around an average level; without a sharp change in earnings we feel that the dividend is likely somewhat sustainable. Pleasingly the company paid out a conservatively low percentage of its free cash flow. Overall, it's hard to get excited about Intertek Group from a dividend perspective. Ever wonder what the future holds for Intertek Group? See what the 16 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Sky News
20-03-2025
- Business
- Sky News
Intertek to hand boss Lacroix multimillion pound pay boost
Intertek Group, the testing and inspection specialist, is to become the latest in a string of FTSE-100 companies to hand their chief executives a sizeable pay boost. Sky News has learnt that the company, which has a market value of close to £8bn, will disclose in its annual report on Friday that Andre Lacroix has been awarded a multimillion pound increase in his maximum remuneration package. Shareholders consulted on the proposals said the increase would largely consist of a substantial hike in Mr Lacroix's variable pay through his long-term incentive opportunity. Mr Lacroix has run the company for a decade, with revenues rising by 62% during that period and operating profit up by more than 80%. The increase in his maximum pay package will make Mr Lacroix the latest in a series of blue-chip company bosses to see their earnings boosted amid intense debate about the attractiveness of the London stock market. Dame Emma Walmsley, the boss of drugs giant GSK, will see her maximum payout increase to £21.6m under a new pay policy. Earlier this year, Sky News revealed that the chief executives of Barclays and HSBC Holdings would see their packages increase following talks with major shareholders. Other companies capitalising on a more permissive mood among institutional investors include British American Tobacco and Compass Group, the contract caterer. Last year, Dame Julia Hoggett, chief executive of the London Stock Exchange, called for UK CEO pay to be brought more closely into line with that of US-based peers in order to help avert a flow of companies shifting their listings to New York.
