Testing and inspection business Intertek Group posted a seven per cent rise in 2005 profit and predicted further growth in the current year aided by strong global economic growth and increased levels of over-seas trade.
Intertek, which ensures that Jaguar cars, Toys R Us's toys, and BASF's chemicals, conform to industry standards and meet safety requirements, said profit before tax rose to £79.4 million from £74.4 million on sales up 16 per cent to £580.1 million.
"We've delivered a good set of results and having made a number of acquisitions over the year we're very well prepared for 2006," chief executive Wolfhart Hauser.
Financial analysts had forecast profit of around £79.9 million after the company warned in November that oil and chemical testing revenues would be at the lower end of expectations.
Labtest, Intertek's biggest division, grew operating profit by just 2.3 per cent to £44.9 million on revenues up 7.1 per cent to £143.2 million. The division was hurt after the United States and European Union both blocked imports of textiles from China.
Intertek, which claims to be the biggest tester of Chinese garments on behalf of clients such as Wal-Mart Stores and Marks & Spencer, expects an improved performance from Labtest in 2006 after new Chinese textile quotas were agreed.
Operating profit the company's electrical, automotive and industrial testing arm rose 25 per cent to £22 million as strong US and Chinese growth helped spur a 17 per cent increase in revenue, while profit at the oil and chemicals testing arm rose 22.4 per cent to £19.1 million.
Mr Hauser, who spent £47 million on 12 acquisitions in 2005, says the spending spree is set to continue.
"We know which companies are there and pursue them. We are actively stepping in and trying to pick out interesting acquisitions. Hopefully it will be a similar number like last year," he noted.
