Intertek (LSE:ITRK) announced it has launched a strategic review to assess a potential separation of its business, while also reporting first-quarter organic growth ahead of expectations. The update sent shares more than 13% higher in early London trading.
The FTSE 100 group is considering splitting its operations into two standalone entities: Intertek Testing & Assurance, which includes consumer products, corporate assurance, and health and safety services, and its Energy & Infrastructure division. In 2025, these units generated revenues of £1.9 billion and £1.6 billion respectively.
The review process, expected to conclude by mid-2027, will explore options including a sale or demerger. Management noted that both divisions could be “better positioned as separate businesses to unlock their full potential.”
Chief Executive André Lacroix said the company has reached a scale where greater simplification and sharper strategic focus could help accelerate growth. He added that the group is “energised” by the review and sees a “significant value growth opportunity” for shareholders.
According to Annelies Vermeulen of Morgan Stanley, the move had been under consideration for some time, with the timing now seen as appropriate to allow the company to become more focused and drive stronger growth in its core areas.
Alongside the strategic update, Intertek reported like-for-like revenue growth of 5.4% at constant currency for the first quarter, exceeding the 3.4% consensus forecast from Visible Alpha. Corporate Assurance led performance with 10.8% growth, followed by Consumer Products at 6.5%, while the World of Energy division was broadly flat.
“While quarterly periods are not directly comparable, we note 1Q organic of +5.4% is sequentially better vs +1.9% 4Q (Nov-Dec), despite a slightly more challenging comp in the 1Q Jan-Apr period last year,” Vermeulen noted.
Intertek left its full-year outlook unchanged, continuing to target mid-single-digit like-for-like revenue growth, margin expansion, and strong free cash flow generation through 2026.
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