Intertek Group plc (IKTSF) Q4 2022 Earnings Call Transcript

Intertek Group plc (OTCPK:IKTSF) This autumn 2022 Outcomes Convention Name February 28, 2023 2:45 AM ET

Firm Individuals

Denis Moreau – VP of Investor Relations

Andre Lacroix – CEO and Director

Jonathan Timmis – CFO and Govt Director

Andre Lacroix

Good morning to you all, and thanks for becoming a member of us on our name. I’ve with me Jonathan Timmis, our CFO; and Denis Moreau, our VP of Investor Relations. I might like to start out our name in the present day recognizing all of my colleagues at Intertek for having delivered a strong efficiency in 2022.

2022 marks one other yr of constant supply with income and EPS in keeping with expectations, which demonstrates the prime quality of our development earnings mannequin. There isn’t any query that 2022 was more difficult than anticipated. The worldwide economic system was impacted by the compounding impact of three consecutive shocks within the final 3 years: the worldwide pandemic, a serious disruption of the world’s provide chain and the return of inflation.

There are 5 takeaways in our presentation in the present day. First, we noticed the next demand for ATIC options with mid-single digit like-for-like income development at fixed fee. Second, our full margin was strong at 16.3% with a powerful H2. Third, with even double-digit EPS development at precise fee, each our money circulate from operations was sturdy and grew by £26 million. And at last, we delivered a superb ROIC of 18% with year-on-year progress at fixed fee. Let’s begin with our efficiency highlights.

We have delivered certainly a strong efficiency with group revenues up 8% at fixed fee and almost 15% at precise charges. Like-for-like income development of 4.9% at fixed fee, working revenue up 4% at fixed fee and almost 10% at precise charges, strong working margin of 16.3%. EPS development of 4.6% at fixed fee and 10.6% at precise charges progressed on ROIC at fixed fee and unchanged full yr dividend at