Q1 sales €930m are €10m below street estimates. By business construction and Marine posted negative organic (-0.5% and -8.8% respectively). Q1 Org Rev Growth 4.8% is a miss (street c.5.2). Guiding FY Org Growth below the previous 6-8% range (cons at c7%). Blames low shipbuilding volumes & volatile metal prices. A testing stock trading on 23x P/E for perceived defensive, growth characteristics. BVI was 1 of 2 testing names ‘promoted’ from the HQGB, i.e. ejected for having too high valuation, (together with ITRK LN) joining SGS which was ejected from a previous basket.
Intertek’s trading statement is May 17th. The street still estimates 8% 2013 organic growth, which in light of recent comp reports, may be challenging. Avoid.