StockMarketWire.com - Intertek reported Tuesday first-half adjusted pretax profit rose 1.6% but revenue fell 1.8% as strength of the pound weighed on performance.

For the six months to 30 June, adjusted pretax profit rose 1.6% to £213.6m, operating profit grew 0.8% and reported revenue fell 1.8% to £1.35bn from £1.37bn a year earlier.

Organic revenue growth fell 2.3% at actual exchange rates to £1.34bn, as the strength of the pound weighed on results. At constant currency organic revenue rose 3.4%.

The products division -- representing nearly 70% of total revenue -- offset poor results in the resources business, which continued to be pressured by challenging conditions in the oil and gas infrastructure market.

Products revenue rose 0.9% to £805.6m at actual currency rates, trade revenue slipped 4.7% to £310.5m and resources revenue fell 6.3% to £231.6m

The company said it expected that its products division, which represents 76% of profit, would benefit from robust organic revenue growth at constant currency in the second half of the year.

First-half statutory operating profit for the period was £209.3m, up 2.4% from £204.4m the previous year.

The group reported free cash flow of £90.6m, down from £124.0m the previous year. The half-year dividend was raised 35.7% to 31.9p.

'The group is well positioned to deliver good organic revenue growth with moderate margin progression at constant currency and strong cash conversion in 2018,' the company said.




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