High revenue growth
- Revenues of £3,393m increased 6.6% at constant currency and 1.9% at current rates.
- LFL growth of 6.3%1 led by Consumer Products 8.0% , Corporate Assurance 7.8%, Health and Safety 7.9%, Industry and Infrastructure 1.7%, World of Energy 8.0%.
Strong margin progression to 17.4%
- +100bp1 increase in margin due to mix, pricing, operating leverage, cost control, productivity and cost management
- Ahead of schedule on medium term margin target of 17.5%+ set in May 2023.
- Adjusted Operating profit increased 13%1 and 7.1% at actual rate to £590m.
- +15.2% growth in adjusted diluted EPS at constant rates and 7.9% at current rates.
Strong cash generation and financial position
- Daily cash discipline helps deliver cash conversion of 121%, and adjusted free cash flow increased to £409m, up 8.0%2.
- Reduced net financial debt to £500m2, as well as improving net financial debt/EBITDA to 0.7x.
Effective capital allocation
- Investments in organic growth of £135m with the acquisition of Base Met Labs.
- Incremental M&A activity yields revenue of £207m. Margins proposed at 25.1%.
- Exceptional improvement in ROIC to 22.4%, up +250bps in constant currency (+190bps at actual rates).
Returns to shareholders
- Full year dividend of 156.5p, up +40.1% yoy, aligned with ~65% payout ratio.
- Initiated £350m share buyback program which demonstrates Intertek’s highly cash generative earnings model.
Anticipated robust growth in 2025 and midterm increase on margin target to 18.5%+
- Mid-single digit LFL revenue growth at constant currency with margins, cash flow and strong cash flow in 2025.
- Medium term margin target increased to 18.5%, capitalising on strong ATIC growth with proven processes.
The CEO of the Intertek Group, Mr. André Lacroix expresses, “We are entering 2025 with confidence the Group will deliver a robust performance with mid-single digit LFL revenue growth at constant currency, margin progression and a strong cash flow performance.” He mentioned that they have delivered a great margin of 17.4% in 2024, which achieved their medium term target (17.5%+) quicker than expected.”
He also announced a new margin target of 18.5%+ in the medium-term, capitalizing on the revenue growth acceleration the company is seeing for their ATIC solutions, disciplined performance management, investments in high growth and high margin segments.
