Intertek's profits up 4.9%

Intertek's profits up 4.9%

	Published : Tue, 07 Mar 2006 06:05 By : Andrew Stead Print this Story

LONDON: Intertek Group Plc., Britain's testing and inspection company, posted a 4.9 per cent increase in 2005 operating profit at 87.1 million pounds. The company said its outlook for the current fiscal is good.

Its turnover for the year grew 16.5 per cent to 581.9 million pounds. The company makes much of its earnings in dollars.

Intertek, which test goods ranging from textiles and chemicals to cars and toys and ensures that they conform to industry standards and meet safety requirements, originally belonged to international motor car dealer Inchape Plc. before it was bought by its management in 1996 with help from equity firm Charterhouse Development Capital. It was listed on the bourse in 2002.

The company's largest division, Labtest, increased its operating profit by just 2.3 per cent to 44.9 million pounds on revenues of 143.2 million, which is up 7.1 per cent. The blockade of apparel imports from China by the U.S. and European Union, alleging unfair competition, had affected the business of this division. The division undertakes tests for Chinese garments for clients including Wal-Mart and Marks & Spencer.

Profit at its electrical, automotive and industrial testing unit rose 25 per cent to 22 million pounds, while profit at the oil and chemicals testing division rose 22.4 per cent to 19.1 million pounds.

The company revealed that it had made 12 acquisitions during 2005 at a cost of 46.9 million pounds. Chief executive Wolfhart Hauser said the company is trying to pick up interesting targets in 2006. "Hopefully it will be a similar number like last year," he added.

The company increased its final dividend 16 per cent to 8.1 pence per share taking the full-year dividend to 12 pence a share.

Intertek shares fell 0.5 pence to 758, valuing the company at 1.2 billion pounds.