Intertek reported revenues slightly light of expectations at £1.02bn, but EPS ahead by 3.7% at 61.2p (a 1.1% decline from the prior year). On a constant currency basis the firm actually increased EPS by 8.2%, making the move to increase the interim dividend by 6.7% to 16.0p seem reasonable. Some of the top line weakness was attributed to a strategic exit from low-value contract within the Industry & Assurance division. Minerals headwinds continue, not helped by the minerals export ban in Indonesia. Management reiterated the view that they can deliver high single digit organic revenue growth over the coming years. Intertek was ejected from our HQGB some years ago as it failed on the cash-flow metric. Since then we have had more form with it on the short side, and Riccardo remains a technical seller. However, at £25.33/share the firm would once again make our HQGB and so, we will be re-visiting it over the coming days to see if makes sense to invest in.
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