Testing and inspection group Intertek yesterday hailed a 21% hike in pre-tax profits as it delivered a power surge in energy markets.
The global firm said its revenues grew 17% year-on-year to £2.05 billion during last year, with an 8.6% rise in like-for-like sales at constant currency.
Pre-tax profits lifted to £256.6m after exceptional charges, amortisation and other adjustments while the company also announced the purchase of Brazilian toy testing firm E-Test and South African food assurance group FSA in deals worth a combined £7.1m.
The strongest performing division was its industry and assurance arm, where revenues climbed by 42% to £665.6m in oil and gas, food, chemical, agricultural and energy testing. Intertek employs around 300 people in Scotland, with work largely in the oil and gas sector accounting for some £80m in revenue.
The company has a string of bases in Aberdeen and presences in Grangemouth and Lanarkshire, alongside the Dundee office of its energy and water consultancy subsidiary previously known as Metoc.
It expects that demands in the division will continue to grow, with Intertek having high hopes for future business in technical inspection and testing of energy infrastructure, and looking well-placed to capitalise on new food testing requirements as a result of the horsemeat scandal.
Operating profits in the division climbed 52% to £77.4m, while returns also grew in the testing of minerals, toys and consumer goods, commercial and electrical goods and chemical and pharmaceuticals.
The company made six bolt-on acquisitions last year, spending a total of £40m on new aerospace, mineral and energy testing facilities on a debt-free, cash basis.
Intertek also invested £115m in the expansion of its worldwide network, while identifying underperforming locations for a Europe-focused restructure and continuing its efforts to bring the £450m, 2011 acquisition Moody International into the fold.
The restructuring programme will include closure, asset write-downs and redundancies, but it is not yet clear which of the firm’s sites will be affected.
Chief executive Wolfhart Hauser said the group was pleased at the continuing “strong growth” of the company over the 12 months to the end of December.
“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,” he said.
“These results underline the resilient nature of the growth drivers in our chosen quality markets and our ability to capture growth and deliver value to shareholders through acquisitions and organic investment.”
He confirmed that the best of the growth came from Asia, Australasia, the Middle East and the Americas, but confirmed that the group was “taking action” to align its portfolio with growth priorities and to deliver “high single digit” revenue growth.
“Whilst economic conditions remain uncertain, we are confident in the opportunities embedded across our portfolio of industries and countries.”
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