Intertek Group Plc Board Recommends Full Year Dividend of 105.8p per Share

DividendMax Ltd.

Intertek Group Plc Board Recommends Full Year Dividend of 105.8p per Share

Reflecting the Group's strong cash generation in 2022, the Board recommends a full year dividend of 105.8p per share, in-line with prior year.

The full year dividend of 105.8p equates to a total cost of £170.6m or 50% of adjusted profit attributable to shareholders of the Group for 2022 (2021: £170.6m and 55%). The dividend is covered 2.0 times by earnings (2021: 1.8 times), based on adjusted diluted earnings per share divided by dividend per share

Other Financial Highlights: 

• Revenue of £3,193m; +8.2% at constant rates; +14.6% at actual rates

• LFL revenue growth of 4.9% at constant rates: Products +3.9%; Trade +5.6%; Resources +7.9%

• Outside China LFL revenue grew 6.5% at constant rates: Products 5.5%, Trade 7%, Resources 8.5%

• Recent acquisitions JLA, SAI and CEA performing well, contributing £153.0m of margin accretive revenue in 2022

• Adjusted operating profit of £520m, up 3.8% at constant rates and up 9.7% at actual rates

• Robust adjusted operating margin of 16.3%, 70bps lower at constant and actual rates; H2 margin of 17.8%

• Adjusted diluted EPS of 211.1p: up 4.6% at constant rates and up 10.6% at actual rates

• Adjusted free cash flow of £386m and a strong balance sheet with 1.1x net debt to EBITDA

• ROIC of 18.0%, up year-on-year by 20bps at constant rates and down 20bps at actual rates

• Cost reduction programme (£27m in SDIs) to streamline operations and deliver annual savings of £15m

• 2023 outlook: Mid-single digit LFL revenue growth, margin progression and strong free cash flow

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