Intertek Group plc (LSE: ITRK)

Quick Facts / Company Snapshot

• Company Name: Intertek Group plc
• Year Founded: Over 130 years ago
• Headquarters: London, United Kingdom (33 Cavendish Square)
• Total Employees: 45,000 dedicated colleagues
• Global Reach: 100+ countries
• Network Size: 1,000+ laboratories and offices
• 2024 Total Revenue: £3,393.2 million
• 2024 Like-for-like Revenue Growth: 6.3%
• 2024 Adjusted Operating Profit: £590.1 million
• 2024 Adjusted Operating Margin: 17.4%
• 2024 Adjusted Free Cash Flow: £408.8 million
• 2024 Dividend Per Share: 156.5p
• Cash Conversion Rate: 121%
• CEO: André Lacroix
• Chair of the Board: Andrew Martin
• Business Segments: Consumer Products, Corporate Assurance, Health and Safety, Industry and Infrastructure, World of Energy
• Strategy Plan: AAA differentiated growth strategy
• Total Client Base: 400,000+ clients
• Net Promoter Score (NPS) Interviews: 6,036 per month on average
• Stock Exchange Listing: London Stock Exchange (FTSE 100)

Company overview

Intertek Group plc is a world-leading pioneer in providing mission-critical Assurance, Testing, Inspection, and Certification (ATIC) services to a vast array of industries globally. The enterprise operates a decentralized network comprising more than 1,000 state-of-the-art laboratories and business facilities distributed across over 100 countries. This immense physical infrastructure is supported by a dedicated workforce of 45,000 professionals, including 3,000 auditors, who collectively deliver unparalleled precision and accuracy to over 400,000 clients across every industry and region.

• Network size: Over 1,000 laboratories and offices globally.
• Professional workforce: 45,000 dedicated colleagues, forming a vibrant mosaic of diverse experts.
• Global reach: Operations spanning more than 100 countries, enabling localized execution with international scale.
• Client portfolio: Serving a massive base of over 400,000 clients across every industry and region.

The company operates under a unique risk-based approach known as Total Quality Assurance (TQA). This innovation-led, end-to-end value proposition helps organizations mitigate risk at every stage of their operations, from raw material sourcing and manufacturing to distribution and consumer management. The enterprise acts as a trusted partner, ensuring that assets, products, infrastructure, and operating systems strictly meet high standards of quality, health, safety, and environmental sustainability. Through its ATIC services, the organization brings complete peace of mind to clients navigating an increasingly complex global supply chain.

By executing its strategic blueprint known as the “AAA differentiated growth strategy,” the organization aims to seize the increasing demand for Risk-based Quality Assurance. This forward-looking approach targets specific structural growth drivers, including the need for more resilient supply chains, increased investments in new products and services, and a step-change in managing corporate sustainability. The enterprise is firmly established as a high-growth cash compounder, consistently driving sustainable value for all its stakeholders and targeting superior long-term growth and margin accretion.

Business segments

The operations of the enterprise are structured into five distinct business divisions that directly reflect the structural growth drivers and the end-markets they serve. This segmental organization allows for specialized expertise and tailored service delivery, ensuring that the group captures high-margin growth opportunities across varied sectors.

• Total 2024 Revenue: £3,393.2 million generated across all business segments.
• Total 2024 Adjusted Operating Profit: £590.1 million across all segments.
• Strategic Reorganization: The five-division structure reflects the value creation drivers identified in the Intertek AAA differentiated growth strategy.

Consumer Products

The Consumer Products segment focuses on providing comprehensive ATIC solutions to help clients develop and sell better, safer, and more sustainable products to their consumers. It serves as a trusted partner to the world’s leading retailers, brands, manufacturers, and distributors.

• 2024 Revenue: £958.8 million, making it the largest segment by revenue.
• Percentage of Total Revenue: 28.25%.
• 2024 Adjusted Operating Profit: £268.7 million.
• Adjusted Operating Margin: 28.0%, representing the highest margin among all divisions.
• 2024 Like-for-Like Revenue Growth: 8.0%.

This division supports a wide range of industries including textiles, footwear, toys, hardlines, home appliances, consumer electronics, information and communication technology, automotive, aerospace, lighting, building products, and healthcare. The segment includes global business lines such as Softlines, Hardlines, Electrical & Connected World, and Government & Trade Services. Growth is structurally driven by the proliferation of brands and SKUs, expanding e-commerce channels, tighter regulations, increasing sustainability demands, and the rise of the global middle class. The division actively utilizes digital innovations like the Softlines iCare portal to offer customers real-time testing visibility.

Industry and Infrastructure

The Industry and Infrastructure segment focuses on the ATIC solutions required to develop and build better, safer, and greener infrastructure worldwide. It helps customers mitigate risks associated with technical failure or asset breakdown in complex engineering environments.

• 2024 Revenue: £843.6 million.
• Percentage of Total Revenue: 24.86%.
• 2024 Adjusted Operating Profit: £80.7 million.
• Adjusted Operating Margin: 9.6%.
• 2024 Like-for-Like Revenue Growth: 1.7%.

This segment provides technical inspections, non-destructive and materials testing, and asset performance management. It encompasses three main global business lines: Industry Services, Minerals, and Building & Construction. The Industry Services line manages asset integrity across energy and petrochemicals, while the Minerals division supports the exploration, production, and trade of mining commodities. Building & Construction provides testing, inspection, and certification for the built environment. Growth drivers include global energy consumption, the transition to renewable power, infrastructure investments driven by population growth, and the development of greener buildings.

World of Energy

The World of Energy segment provides specialized ATIC solutions to help clients develop better, greener fuels and rapidly scale up renewable energy infrastructure to meet global decarbonization targets.

• 2024 Revenue: £757.3 million.
• Percentage of Total Revenue: 22.32%.
• 2024 Adjusted Operating Profit: £77.5 million.
• Adjusted Operating Margin: 10.2%, representing an improvement of 140 basis points year-over-year at constant currency.
• 2024 Like-for-Like Revenue Growth: 8.0%.

This division consists of Caleb Brett, Transportation Technologies, and Clean Energy Associates (CEA). Caleb Brett operates as the global leader in cargo and inventory inspection and analytical assessment for the petroleum and biofuels industries. Transportation Technologies provides rapid testing and validation for emerging automotive technologies, including electric, hybrid, and autonomous vehicles. CEA focuses on quality assurance, supply chain traceability, and technical services for the solar photovoltaic, energy storage, and green hydrogen sectors.

Corporate Assurance

The Corporate Assurance segment delivers industry-agnostic assurance solutions designed to make corporate value chains more sustainable, secure, and resilient from end to end.

• 2024 Revenue: £496.3 million.
• Percentage of Total Revenue: 14.63%.
• 2024 Adjusted Operating Profit: £117.2 million.
• Adjusted Operating Margin: 23.6%, demonstrating an 80 basis point increase at constant currency.
• 2024 Like-for-Like Revenue Growth: 7.8%.

This segment comprises the Business Assurance and Assuris global business lines. Business Assurance provides accredited third-party management systems auditing, second-party supplier auditing, sustainability data verification, and training. Assuris offers a global network of scientists, engineers, and regulatory specialists to navigate complex environmental, health, safety, and quality challenges. Growth in this segment is heavily fueled by the corporate focus on sustainability, the absolute necessity for supply chain resilience, enterprise cyber security requirements, and the expansion of People Assurance services like the Alchemy training platform.

Health and Safety

The Health and Safety segment focuses on providing critical ATIC solutions to ensure healthier and safer lives for consumers globally, securing the integrity of the food and pharmaceutical supply chains.

• 2024 Revenue: £337.2 million.
• Percentage of Total Revenue: 9.94%.
• 2024 Adjusted Operating Profit: £46.0 million.
• Adjusted Operating Margin: 13.6%.
• 2024 Like-for-Like Revenue Growth: 7.9%.

This division includes the AgriWorld, Food, and Chemicals & Pharma business lines. AgriWorld provides assurance, testing, inspection, and certification across the entire agricultural supply chain. The Food business helps major global brands launch new products, ensure safety across the supply chain, and reduce food-borne diseases. The Chemicals & Pharma line enables clients to mitigate product quality risks and accelerates product development for the pharmaceutical, polymer, packaging, and cosmetic sectors. Structural drivers include the demand for healthier and more sustainable food for a growing population and increased R&D investments in the pharmaceutical industry.

History and evolution

The enterprise possesses a deeply rooted pioneering legacy that extends over 130 years. From its very inception, the organization has been structurally intertwined with the evolution of global trade, safety regulations, and technological advancement.

• Foundational origins: The company’s origins trace back over 130 years, originating with early activities in certifying grain cargoes and ensuring the reliability of maritime shipments.
• Technological pioneering: A historic hallmark of the enterprise includes testing and ensuring the safety of Thomas Edison’s early inventions, cementing its role in the foundation of modern electrical safety testing.
• Sustained evolution: Over the past century, the organization has consistently transformed its portfolio to match industrial shifts, expanding from fundamental maritime inspection and electrical testing into a fully integrated global provider of ATIC services.
• Strategic acceleration: In May 2023, the enterprise launched the “AAA differentiated growth strategy,” aimed at redefining the industry from traditional Testing, Inspection, and Certification into an overarching Risk-based Quality Assurance framework.

Today, the organization acts as a powerful force for good, leveraging its vast history to provide Total Quality Assurance across every aspect of modern life. The company continually upgrades its capabilities, integrating artificial intelligence and digital supply chain mapping to stay ahead of the regulatory curve and client requirements.

Products and services

The enterprise delivers a fully integrated portfolio of ATIC (Assurance, Testing, Inspection, and Certification) services, designed to deliver complete peace of mind across all products, services, and operating systems. The core service pillars seamlessly integrate to form the Total Quality Assurance (TQA) value proposition.

• Total 2024 Revenue: £3,393.2 million.
• Customer Interaction: Evaluated through an average of 6,036 Net Promoter Score (NPS) interviews per month to continually refine service delivery.

Testing

Testing evaluates how customers’ products and services meet and exceed quality, safety, sustainability, and performance standards. This analytical evaluation provides the empirical data necessary for regulatory compliance and product excellence.

• 2024 Revenue: £1,560.87 million.
• Percentage of Total Revenue: 46%.
• Operational Scope: Field and in-house laboratory testing services provide the critical data needed to optimize production processes, validate components, and ensure regulatory compliance for rapid market entry. This includes everything from testing toys for harmful chemicals to validating the electromagnetic compatibility of connected medical devices.

Inspection

Inspection involves validating the specifications, value, and safety of raw materials, products, and physical assets. It ensures that physical reality strictly matches the required engineering or trade documentation.

• 2024 Revenue: £848.3 million.
• Percentage of Total Revenue: 25%.
• Operational Scope: Independent third-party physical inspections protect financial, branding, and legal interests throughout the supply chain. This encompasses managing the end-to-end life of facilities like power plants and ensuring petroleum shipments meet precise standards before commercial trade settlement.

Assurance

Assurance goes beyond physical assessment to identify and mitigate intrinsic risks in corporate operations, supply chains, and quality management systems. It is the fastest-growing and most forward-looking pillar of the group.

• 2024 Revenue: £712.57 million.
• Percentage of Total Revenue: 21%.
• Operational Scope: Includes extensive auditing, performance benchmarking, supply chain traceability solutions (like the Trace For Good platform), and enterprise training services (like Alchemy and PlayerLync) to guarantee that operating procedures and personnel are functioning optimally.

Certification

Certification formally confirms that products, processes, and services strictly adhere to trusted external and internal standards, providing the ultimate market access authorization.

• 2024 Revenue: £271.46 million.
• Percentage of Total Revenue: 8%.
• Operational Scope: Leveraging extensive global accreditations, the enterprise provides recognized seals of approval that facilitate international market entry, verify eco-friendly claims (like the CarbonClear certification), and guarantee social accountability compliance for global suppliers.

Brand portfolio

While the organization operates primarily under its universally recognized corporate namesake, it has systematically expanded its capabilities through strategic acquisitions, retaining and integrating specialized brands to fortify its presence in niche, high-growth markets.

• M&A Contribution: Acquisitions made over the last five years contributed £207 million to the 2024 revenue, delivering an impressive margin of 25.1%, contributing £52 million to operating profit.

SAI Global Assurance

Acquired in May 2021, this entity significantly expanded the group’s assurance capabilities across multiple geographic zones.

• Strategic Focus: A leading provider of assurance services, enhancing capabilities in attractive end-markets such as food, agriculture, and Quick Service Restaurants.
• Geographical Impact: Increased the group’s presence in complementary markets including Australia, the United States, Canada, the United Kingdom, and China.

Clean Energy Associates (CEA)

Acquired in July 2022, CEA is a critical component of the World of Energy division, functioning as a specialized technical advisor for the global energy transition.

• Strategic Focus: Provides specialized quality assurance, supply chain traceability, and technical services for the solar photovoltaic, energy storage, and green hydrogen sectors.
• Market Impact: Empowers the expansion of the group’s sustainability service offering within the rapidly growing global renewable energy market.

PlayerLync

Acquired in August 2023, this US-based entity fortifies the Corporate Assurance segment by revolutionizing frontline worker training.

• Strategic Focus: A leading provider of mobile-first training and learning content for frontline workforces.
• Market Impact: Strengthens the enterprise’s position as a leader in SaaS-based, technology-enabled People Assurance services, directly building upon the earlier successful acquisition of Alchemy/Wisetail.

Base Metallurgical Laboratories (Base Met Labs)

Acquired in March 2024, this North American firm massively expands the enterprise’s analytical capabilities in the global mining sector.

• Strategic Focus: Provides advanced metallurgical testing services for the minerals industry.
• Geographical Impact: Establishes a critical minerals testing footprint on the American continent, helping global mining companies accelerate toward a sustainable future and optimize resource extraction.

JLA Brasil Laboratório de Análises de Alimentos S.A.

Acquired in July 2021 to expand the Health and Safety footprint in South America.

• Strategic Focus: A specialized provider of food and agri assurance testing.
• Market Impact: Facilitated entry into the highly attractive food-testing market in Brazil, one of the world’s largest agricultural exporters.

Controle Analítico

Acquired in April 2023, this firm serves as a complementary addition to the Brazilian portfolio.

• Strategic Focus: A leading provider of environmental analysis with a specific focus on water testing.
• Market Impact: Expands the service offering in the environmental testing market, supporting Total Quality Assurance solutions in South America.

Geographical presence

The enterprise operates a massive, decentralized global infrastructure, allowing it to transact in over 80 currencies across more than 100 countries. This geographical diversity provides partial dilution to foreign exchange exposures and ensures rapid, localized service delivery on an international scale.

• Total 2024 Revenue: £3,393.2 million.
• Total Non-Current Assets: £2,440.0 million.
• Global Workforce: 45,000 employees speaking over 100 languages.

United States

The United States represents the largest single geographical market for the enterprise, driven by immense consumer demand, large-scale energy infrastructure, and stringent corporate assurance requirements.

• 2024 Revenue: £1,025.7 million.
• Percentage of Total Revenue: 30.22%.
• Non-Current Assets: £1,093.4 million.
• Key Operations: Hosts critical centers such as the Electrification Centre of Excellence in Plymouth, Michigan, which provides extensive testing for EV batteries, and the Intertek Alchemy Engage operations in Austin, Texas.

China (including Hong Kong)

China serves as a massive hub for manufacturing, global trade, and consumer product testing, deeply anchoring the group’s supply chain inspection and analytical services.

• 2024 Revenue: £605.7 million.
• Percentage of Total Revenue: 17.85%.
• Non-Current Assets: £80.3 million.
• Operational scale: Employs a vast technical workforce supporting the global export of softlines, hardlines, and connected technologies.

United Kingdom

As the home market and corporate headquarters, the United Kingdom provides a stable foundation of specialized infrastructure, energy, and corporate assurance services.

• 2024 Revenue: £227.9 million.
• Percentage of Total Revenue: 6.71%.
• Non-Current Assets: £251.5 million.
• Key Operations: Hosts the EV Centre of Excellence in Milton Keynes, supporting advanced automotive validation, high-speed motor testing, and full vehicle electric propulsion system validation.

Australia

Australia represents a critical market particularly for the Minerals, Infrastructure, and Business Assurance segments, supported heavily by the recent integration of SAI Global.

• 2024 Revenue: £171.4 million.
• Percentage of Total Revenue: 5.05%.
• Non-Current Assets: £473.0 million.
• Key Operations: Home to the Minerals Global Centre of Excellence in Perth, Western Australia, a technology and innovation hub focusing on automation and sustainability in mining analytics.

Other Countries and Unallocated

This segment represents the vast, diversified footprint across Europe, the Middle East, Latin America, and emerging markets in Asia and Africa.

• 2024 Revenue: £1,362.5 million.
• Percentage of Total Revenue: 40.15%.
• Non-Current Assets: £541.8 million.
• Key Operations: Includes the Battery Xcellence Centre in Mestre, Italy; the Maison Centre of Excellence for luxury textiles in Florence, Italy; and the state-of-the-art Caleb Brett aviation fuel testing laboratory in O’ahu, Hawaii.

Financial performance analysis

The 2024 fiscal year marked a period of highly robust financial performance for the enterprise, successfully demonstrating the early impacts of the AAA differentiated growth strategy. The group effectively capitalized on its high-growth cash compounder earnings model to deliver superior value.

• Total Revenue: Increased to £3,393.2 million, representing reported growth of 1.9%. At constant currency, revenue grew by 6.6%, driven by a powerful like-for-like (LFL) revenue increase of 6.3%.
• Adjusted Operating Profit: Climbed to £590.1 million, an increase of 7.1% at actual rates and a massive 13.0% at constant currency.
• Adjusted Operating Margin: Improved to 17.4%, representing a 100 basis point expansion at constant currency. This faster-than-expected margin progression was driven by favorable mix effects, strict pricing discipline, cost control, and operational leverage.
• Statutory Profit for the Year: Stood at £367.2 million, up from £318.1 million in 2023.

The financial performance reflects disciplined performance management. The group generated an outstanding adjusted free cash flow of £408.8 million, up 8.0% year-over-year. This immense cash generation resulted in a reduction of net financial debt to £500.0 million, bringing the leverage ratio (net financial debt to EBITDA) to an extremely healthy 0.7x. Consequently, the enterprise achieved an exceptional Return on Invested Capital (ROIC) of 22.4%, up 250 basis points at constant currency.

Profit and loss analysis

The consolidated income statement illustrates the group’s successful conversion of revenue growth into strong profitability through disciplined execution.

Consolidated Income Statement

(£ millions)	2024	2023
Revenue	3,393.2	3,328.7
Operating costs	(2,857.5)	(2,842.5)
Group statutory operating profit	535.7	486.2
Finance income	2.5	3.8
Finance expense	(48.2)	(67.7)
Net financing costs	(45.7)	(63.9)
Profit before income tax	490.0	422.3
Income tax expense	(122.8)	(104.2)
Profit for the year	367.2	318.1
Adjusted operating profit	590.1	551.1

Employee costs form the largest single expenditure category, emphasizing the human-capital intensive nature of the ATIC services business model. Separately Disclosed Items (SDIs) at the operating level amounted to £54.4 million, consisting primarily of the amortization of acquisition intangibles and costs associated with restructuring programs. The adjusted diluted earnings per share (EPS) at actual exchange rates was 7.9% higher at 240.6p, demonstrating the compounding nature of the earnings model.

Balance sheet analysis

The balance sheet highlights a robust, capital-light structure, characterized by healthy liquidity, prudent debt management, and a massive reduction in working capital requirements.

Consolidated Statement of Financial Position

(£ millions)	2024	2023
ASSETS
Non-current assets
Property, plant and equipment	692.8	669.6
Goodwill	1,365.9	1,385.8
Other intangible assets	304.2	330.9
Trade and other receivables	15.4	21.8
Defined benefit pension asset	27.2	21.8
Deferred tax assets	34.5	36.4
Total non-current assets	2,440.0	2,466.3
Current assets
Inventories	19.0	17.2
Trade and other receivables	754.9	725.1
Cash and cash equivalents	343.0	299.3
Current tax receivable	42.4	30.0
Total current assets	1,159.3	1,071.6
Total assets	3,599.3	3,537.9
LIABILITIES
Current liabilities
Interest-bearing loans and borrowings	(159.3)	(21.5)
Current taxes payable	(59.6)	(63.8)
Trade and other payables	(796.8)	(779.6)
Provisions	(25.1)	(22.2)
Total current liabilities	(1,040.8)	(887.1)
Non-current liabilities
Interest-bearing loans and borrowings	(683.5)	(888.4)
Deferred tax liabilities	(81.4)	(85.2)
Net pension liabilities	(7.2)	(10.1)
Provisions	(7.1)	(11.0)
Other payables	(157.9)	(296.0)
Total non-current liabilities	(937.1)	(1,290.7)
Total liabilities	(1,977.9)	(2,177.8)
Net assets	1,621.4	1,360.1

The organization successfully managed its working capital downwards by £17.1 million, ending the year with a negative working capital position of £95.9 million, demonstrating exceptional financial discipline. Net financial debt decreased substantially to £499.8 million. Goodwill represents the largest non-current asset, reflecting the group’s historic, targeted acquisition strategy.

Cash flow analysis

The enterprise is characterized by a highly cash-generative earnings model, with daily cash discipline ensuring immense liquidity to fund growth, organic capital expenditure, and shareholder returns.

Consolidated Statement of Cash Flows

(£ millions)	2024	2023
Cash flow from operations	775.8	725.9
less: Net capital expenditure	(130.0)	(105.4)
add back: Interest received	2.7	3.5
less: Interest paid	(52.2)	(71.9)
less: Income tax paid	(126.5)	(119.0)
less: Lease liabilities paid	(74.4)	(77.8)
Free cash flow	395.4	355.3
add back: SDI cash outflow	13.4	23.1
Adjusted free cash flow	408.8	378.4

The organization achieved an outstanding cash conversion rate of 121.1%. This operational cash flow was meticulously allocated to support organic capital expenditure, service lease liabilities, and fund strategic acquisitions, while simultaneously supporting a £206.1 million dividend payout to shareholders during the year. The group also initiated a £350 million share buyback program utilizing this excess cash generation.

Board of directors and leadership team

The Board of Directors maintains robust governance, setting strategic direction, and ensuring the independence and effectiveness of the internal control framework.

• Andrew Martin: Chair of the Board. He guides the strategic execution of the group, heavily supporting the AAA differentiated growth strategy, having served as Chair since January 2021.
• André Lacroix: Chief Executive Officer. He leads the implementation of the global strategy and champions the 10X high-performance culture across the enterprise, relentlessly driving the “Good to Great” journey.
• Colm Deasy: Chief Financial Officer. He oversees strict financial discipline, working capital optimization, and capital allocation across the global network.
• Jean-Michel Valette: Independent Non-Executive Director and Chair of the Audit Committee. He oversees financial reporting accuracy, internal controls, and climate risk assessments.
• Graham Allan: Independent Non-Executive Director and Chair of the Remuneration Committee. He aligned the executive incentive structures with the ambitious targets of the AAA strategy, targeting double-digit EPS growth.
• Gurnek Bains: Independent Non-Executive Director.
• Lynda Clarizio: Independent Non-Executive Director.
• Tamara Ingram: Independent Non-Executive Director.
• Apurvi Sheth: Independent Non-Executive Director (Appointed to the Audit Committee in May 2024).
• Steve Mogford: Independent Non-Executive Director (Appointed January 1, 2025, bringing extensive public markets experience to the Board).

The wider management team ensures the decentralized delivery of ATIC services through regional leadership and specific global business line directors, maintaining close contact with local market demands.

Subsidiaries, associates, joint ventures

The enterprise operates as a vast holding structure, controlling a dense network of specialized subsidiaries across the globe. Key operating entities include:

• Intertek Testing Services NA, Inc.: Major operating entity in the United States.
• Intertek Testing Services Shenzhen Ltd: Critical operating entity driving operations in China.
• Intertek Testing Services (M) Sdn Bhd: Key subsidiary in Malaysia.
• Moody International Holdings Chile Ltda: Anchoring infrastructure and industrial services in South America.
• SAI Global (Cyprus) Holdings Limited: Managing assurance operations acquired via the SAI Global integration.
• Clean Energy Associates: Operates as a critical subsidiary managing global solar and hydrogen supply chain traceability.
• Base Metallurgical Laboratories: Added in 2024 to serve the North American minerals sector.
• PlayerLync: Operating as the SaaS platform for people assurance.

Physical properties (offices, plants, factories, etc.)

The enterprise leverages a pervasive and highly specialized global physical footprint designed to be as close to the clients’ operations as possible.

• Global Facilities: The network comprises more than 1,000 distinct laboratories and business offices worldwide.
• Capital Expenditure: The group deployed £130.0 million in net capital expenditure in 2024 (targeting roughly 5% of revenue) to continuously modernize this infrastructure.
• Centres of Excellence: The property portfolio includes massive specialized hubs such as the Battery Xcellence Centre in Mestre, Italy; the Electrification Centre of Excellence in Plymouth, Michigan; the Maison Centre of Excellence for luxury textiles in Florence, Italy; the Minerals Global Centre of Excellence in Perth, Australia; and advanced Caleb Brett fuel testing laboratories in O’ahu, Hawaii.
• Energy Transition Footprint: At least one site in 22 countries is now powered by 100% renewable electricity backed by Energy Attribute Certificates.

Segment-wise performance

The rigorous execution of the AAA strategy resulted in robust operational and financial metrics across all segments in 2024.

• Consumer Products: Delivered powerful high-single digit LFL revenue growth (8.0%). The adjusted operating margin expanded by 170 basis points to an industry-leading 28.0%.
• Corporate Assurance: Reached high-single digit LFL revenue growth (7.8%). Adjusted operating profit rose by 13% at constant currency, lifting the margin to 23.6%, driven by high demand for ESG auditing.
• Health and Safety: Achieved high-single digit LFL revenue growth (7.9%), supported by robust food safety testing. The adjusted operating margin improved to 13.6%.
• World of Energy: Posted high-single digit LFL revenue growth (8.0%), driven by global mobility and biofuels testing. Profitability surged, with the adjusted operating margin climbing 140 basis points to 10.2%.
• Industry and Infrastructure: Recorded a lower-single digit LFL revenue growth of 1.7%, constrained by a temporary slowdown in large North American construction projects, resulting in an adjusted operating margin of 9.6%.

Founders

The enterprise boasts an incredible pioneering legacy dating back over 130 years. The historical foundations of the business were built upon early maritime cargo verification by Caleb Brett and the critical safety testing of Thomas Edison’s original electrical products. This cemented a foundational culture of ingenuity, precision, and impartiality that still drives the multinational organization today.

Shareholding pattern

The enterprise operates as a publicly listed entity on the London Stock Exchange (LSE), with its capital structure supported by major global institutional investors, asset managers, and retail shareholders. During 2024, the Company purchased, through its Employee Benefit Trust, 548,500 of its own shares. The robust cash compounder model ensures a high level of long-term institutional backing.

Parent

Intertek Group plc functions as the ultimate parent company of the global enterprise. It acts as the holding entity that manages, governs, and consolidates the vast international network of testing, inspection, and assurance subsidiaries without being subordinate to any larger corporate parent.

Investments and capital expenditure plans

The organization maintains a highly disciplined capital allocation policy designed to continuously scale its ATIC capabilities and generate superior returns.

• Capital Expenditure (Capex): The group systematically targets investing approximately 5% of its revenue in capex annually to support organic growth and modernize laboratories. Net capex stood at £130.0 million in 2024.
• Acquisitions (M&A): The enterprise retains significant capacity for value-accretive M&A, specifically targeting high-margin, high-growth sectors to complement the existing portfolio, such as the 2024 acquisition of Base Met Labs.
• Shareholder Returns: With leverage operating below the target range of 1.3x – 1.8x, the Board initiated an initial £350 million share buyback program to be completed during 2025, alongside maintaining a dividend payout ratio of approximately 65% of earnings.

Future strategy

The future trajectory of the enterprise is strictly guided by the “AAA differentiated growth strategy,” which extends out to 2030 and aims to fully unleash the group’s potential.

• Growth Targets: The group explicitly targets consistent mid-single digit LFL revenue growth at constant currency over the medium term.
• Margin Ambitions: Capitalizing on revenue acceleration, operational leverage, and a focus on high-margin sectors, the enterprise raised its medium-term adjusted operating margin target to a highly ambitious 18.5%+.
• EPS Growth: The enhanced long-term incentive plans aim to drive double-digit EPS growth annually (10.5% – 14.5%), establishing the enterprise as one of the highest-quality cash compounders globally.
• Innovation Initiatives: The group will continue to deploy breakthrough digital solutions like “Methane Clear” for emissions tracking, “ToxClear” for sustainable chemical management, and “Trace For Good” for textile supply chain transparency.

Key strengths

The organization wields an array of formidable structural advantages that secure its position as the ultimate trust maker in the global economy.

• Science-Based Expertise: The specialized knowledge of 45,000 professionals, including 3,000 auditors, provides unmatched technical depth and problem-solving capability.
• Global Scalability: A decentralized, capital-light network of 1,000+ laboratories enables extreme agility in responding to local market shifts and regulatory changes.
• Financial Discipline: An incredibly powerful cash-generative earnings model that produces a massive 121.1% cash conversion rate, ensuring total flexibility for M&A and shareholder returns.
• Deep Customer Intimacy: By conducting over 6,000 Net Promoter Score interviews monthly, the group continuously tailors its innovations to exactly match evolving client requirements.

Key challenges and risks

The Audit Committee and executive leadership rigorously monitor a complex matrix of macroeconomic and operational risks.

• Cyber Security and Data Protection: A failure to protect the Group’s or customers’ confidential information from external interference poses severe legal and reputational risks. The group employs a NIST-based framework to mitigate this.
• Macroeconomic Volatility: Fluctuations in global infrastructure spending, influenced by interest rates and severe weather disruptions, can temporarily depress growth in divisions like Industry and Infrastructure.
• Geopolitical Events: Political decisions and sanctions can impact demand for the Group’s services or threaten the physical security of employees in volatile regions.
• Talent Retention: Operating in a highly specialized, science-based industry means that failing to attract or retain key personnel could severely limit the ability to deliver complex ATIC solutions.

Conclusion and strategic outlook

In 2024, Intertek powerfully demonstrated the efficacy of its AAA differentiated growth strategy, delivering outstanding top-line growth, record cash generation, and an exceptionally fast realization of margin expansion. By pivoting its identity from a traditional testing firm to the preeminent provider of Risk-based Quality Assurance, the enterprise has perfectly aligned its vast technical expertise with the defining megatrends of the modern era: the absolute necessity for supply chain resilience, the surge in sustainable product innovation, and the uncompromising demand for corporate ESG transparency.

Supported by a pristine balance sheet, an incredibly cash-generative operating model, and a vibrant, purpose-driven 10X culture, the organization is uniquely positioned to dominate the ATIC landscape. As global corporations structurally increase their investments in risk mitigation, Intertek stands ready to deliver on its ambitious new medium-term target of an 18.5%+ operating margin. By continuously deploying capital into high-growth niches, aggressively returning value to shareholders via dividends and buybacks, and empowering its 45,000 amazing people, the enterprise will undoubtedly continue to make the world a better, safer, and more sustainable place for generations to come.

FAQ section

What is the core business of Intertek?

Intertek is a global industry leader providing mission-critical Assurance, Testing, Inspection, and Certification (ATIC) services, helping clients ensure the quality, safety, and sustainability of their products, assets, and processes.

How large is the company’s global network?

The enterprise operates a vast decentralized network comprising more than 1,000 laboratories and offices situated across over 100 countries.

How many people does the organization employ?

The company relies on a dedicated global workforce of 45,000 professionals, including 3,000 highly trained auditors.

What was the total revenue for 2024?

The group generated a total reported revenue of £3,393.2 million, achieving a strong like-for-like revenue growth rate of 6.3% at constant currency.

What is the AAA differentiated growth strategy?

The AAA strategy is the corporate blueprint designed to seize the rising demand for Risk-based Quality Assurance by leveraging the group’s best-in-class operating platform, targeting mid-single digit revenue growth, margin accretion, and robust cash generation.

How does the company allocate its capital?

The group targets investing approximately 5% of its revenue in capital expenditures, aims for a dividend payout ratio of circa 65% of earnings, and executes regular share buybacks (including an initial £350 million program) while pursuing value-accretive M&A.

What are the primary business segments?

Operations are divided into five distinct segments: Consumer Products, Industry and Infrastructure, World of Energy, Corporate Assurance, and Health and Safety.

What is Total Quality Assurance (TQA)?

TQA is Intertek’s unique risk-based value proposition that goes beyond physical testing to provide end-to-end assurance on the underlying operating processes, supply chains, and quality management systems of its clients.

What recent acquisitions has the company made?

Recent strategic acquisitions include Base Metallurgical Laboratories (minerals testing), PlayerLync (people assurance and training), Clean Energy Associates (solar and hydrogen assurance), and SAI Global Assurance.

Who leads the executive team?

The global executive team is led by Chief Executive Officer André Lacroix, under the governance of the Board of Directors chaired by Andrew Martin.

Official Site: https://www.intertek.com

Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.