Intertek margins held in check

This latter problem was linked to global miners scaling back exploration and appraisal activities. Consequently, the operating margin at Intertek’s commodities division, which accounted for 27 per cent of first half turnover, fell by 190 basis points to 10.4 per cent, which meant a drop in commodities profits from £34.3m to £30.7m. However, this fall was more than offset by an additional £10.9m in comparable operating profits from Intertek’s industry & assurance and consumer goods division which between them accounted for half group revenues.

Overall, underlying group operating profits were up by 4 per cent to £158m on a margin of 14.6 per cent, which compares with 15.4 per cent in 2012. With performance weighted towards the second half, Intertek expects to report a margin of 17.2 per cent through the remainder of 2013.

Intertek completed four bolt-on acquisitions through the period, including a £6.6m deal to secure 85 per cent of Brazilian consumer testing outfit E-TEST. But it has also continued to hive-off non-performing businesses to reduce operating costs. The related first-half restructuring bill came in at £4.1m, bringing the total for the programme to £18.3m.

JPMorgan Cazenove reduced its 2013 EPS estimate from 147.3p to 145.8p (from 131.2p in 2012).