Intertek Shares (LON:ITRK) Move Red YTD as H1 Results Come In Light

Intertek shares (LON:ITRK) are firmly lower today, down 7.6% on the back of lighter than expected H1 results, with currency headwinds playing a key role in concerns.

Revenue on the period reached £1,673 million, a 4.5% increase at constant currency, although only a 0.2% rise at actual rates, highlighting the impact of currency fluctuations. With markets looking for a 4.7% growth rate leading in, this reflects a miss that is being punished early.

Like-for-like (LFL) revenue growth was driven by strong performances in Consumer Products (+7.9%) and Corporate Assurance (+8.2%). Adjusted operating profit climbed to £276.3 million, a 9.7% increase at constant currency and a 4.2% rise at actual rates.

An interim dividend of 57.3p was declared, a 6.3% year-on-year increase, aligning with the company's dividend policy of maintaining a payout ratio of approximately 65%.

Looking ahead, Intertek anticipates mid-single-digit LFL revenue growth at constant currency for the full year 2025, with continued margin progression and strong free cash flow generation. The company’s outlook is supported by growth in its Consumer Products and Corporate Assurance divisions, which are also its two most profitable segments.

Currency headwinds, missed growth rates, and a maintained guide have not given bulls much to cheer this morning. Intertek shares have moved red on a YTD basis with today's downside move, down 2.66% YTD.