UK-based testing, inspection, and certification firm Intertek has announced a significant share buyback of £350 million (approximately $444.5 million), sparking a 5.4% rise in its shares, which traded at 5,430 pence in early European trade on Tuesday. Alongside the buyback, Intertek has raised its medium-term earnings margin target following robust full-year results.
Intertek reported a full-year EBITA of £590.1 million, narrowly beating analysts’ expectations of £589.1 million. The company’s full-year like-for-like revenue grew by 6.3% at constant currency to reach £3.38 billion, while the operating margin improved to 17.4% from 16.6% the previous year. Profit after tax surged by 15% to £367.2 million.
In light of these results, Intertek has revised its medium-term earnings margin target from 17.5% to 18.5%, reflecting the firm’s optimism about sustained operational improvements.
To boost shareholder value further, Intertek has not only announced the £350 million share buyback but also increased its full-year dividend by 40% to 156.5 pence. This combination of share repurchases and a higher dividend underscores the company’s commitment to returning capital to its investors while reinforcing its financial resilience.
For a deeper look at the company’s revenue growth and margin trends, investors may explore Financial Modeling Prep’s Financial Growth API to review detailed historical performance metrics.
The renewed focus on shareholder returns and the upward revision in earnings margin targets signal Intertek’s confidence in its strategic direction. As the company continues to streamline operations and enhance its core business strengths, market participants will be closely watching for further improvements in financial performance.
Investors interested in an overall assessment of Intertek’s financial health and valuation can refer to the Company Rating API provided by Financial Modeling Prep, which offers insights into key performance indicators and valuation metrics.
