Intertek Group plc

Good day, ladies and gentlemen, and welcome to Intertech Full Year Results 2025. At this time, all participants are in a listen-only mode. Later, we'll conduct a question and answer session. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. If you've dialed in, please select star 9 to raise your hand and star 6 to unmute. Instructions will also follow at the time of the Q&A. I would like to remind all participants that this call is being recorded. Questions will follow after the presentation. I will now hand over to Andre Lacroix, Chief Executive Officer, to start the presentation.

Good morning to you all, and thanks for joining us on our call. I am with me, Comme Dizier, CFO, and Denis Moreau, VP of Investor Relations. 2025 marks the third consecutive year of WGTPS growth, and I would like to start our presentation today by recognizing all of my colleagues around the world for the strong delivery of our AAA differentiated strategy for growth. Here are the key takeaways from our call today. In 2095, we have converted our 4.3% revenue growth into 10.1% EPS growth with a strong margin progression of 90 basis points. Cash conversion was excellent at 110%, providing us with the funds to invest 300 million in growth and return 602 million to our shareholders. Following the launch of our AAA strategy three years ago, our earnings per share had grown two times faster than revenue, our margin progression of 240 basis points was ahead of target, and we have delivered a cumulative operating cash flow of £2.3 billion. Importantly, we have increased dividend per share by 17% per year on average in the last three years. In 2026, we're expecting a strong performance with mid-single-digit lag for algorithmic roles, further margin progression, strong learning roles, and a strong cash generation. Let's start with the highlights of our 2025 performance. We have delivered indeed a strong financial performance. Our revenue growth was robust, up 4.3% at constant rate and 1.1% at actual rate. Our operating margin was excellent, at 18.1%, up here and there by 90 basis points. Our operating profit growth was strong, up by 9.3% at constant rate and 5% at actual rate. EPS grew at 10.1% at constant rate. Our RIC was excellent, 21.3%, and our organic RIC increased by 70 basis points. And as I said earlier, our cash conversion was excellent at 110%. Let's now discuss our like-for-like revenue growth performance. The demand for our ATF solution was robust, and our like-for-like revenue growth of 3.9% at constant rate was driven by both volume and price. Our like-for-like growth in consumer products, corporate insurance, health and safety, and industry infrastructure combined, which represents 90% of the group's earnings, was 5.4%. The world of energy performance was driven by two factors. First, a very demanding base, with 8% like-for-like revenue growth in 2024 and 8.7% like-for-like revenue growth in 2023, as well as, as we know, a slowdown in transportation technology in the second half of 2025. In the last three years, as you can see on the slide, our group Gitsim Digital Act product revenue growth was broad-based and in line with our AAA targets. The acquisitions we've made are performing very well. We've made seven acquisitions in the last three years to strengthen our IT value proposition in high-growth and high-margin sectors. These investments have valued equity to the group, having delivered in aggregate a margin of 34% in 2025. We are truly excited about the consultation opportunities in our industry and will continue to target high-quality business service. Indeed, two weeks ago, we've acquired Aerial TV, a drone-based inspection business to strengthen our value proposition in the solar energy. And last week, we've acquired Q-Test in Colombia to expand our internet tech electrical network in Latin America. In the industry, Intertech is recognized for its science-based customer excellence. With our ATIC premium offering, they bring a superior customer service. Our high-margin and capsule-like assurance business solution is the fastest-growing business. From a geographic standpoint, we've benefited in the last few years from broadband rooming roles within each region. There's been a lot of discussion about the economy in China, and let me give you an update on the performance of our China business. We have a very strong business in China, operating a diversified portfolio with scale positions across all of our business lines. We've delivered a like-for-like revenue growth of 5.4% in 2025, in line with our three-year like-for-like revenue growth of 5.6%. We are extremely pleased with our margin performance of 18.1%, which was up 90 basis points as constant currency. We have benefited from portfolio mix, fixed cost leveraged into growth, productivity improvements, our restructuring programs, and of course, our creative investments. These positive margin drivers were partially offset by the cost of inflation and our investments in growth. A few years ago, we announced a cost reduction program to target productivity opportunities based on operational streamlining and technology upgrade initiatives. Our restructuring program is valued at 13 million savings in 2023, 11 million in 2024, and 6 million in 2025. We expect 8 million benefit in 2026 from the restructuring that we've done in 2025. In the last few years, we've increased our margin by 80 basis points on average per year, well ahead of our AAA targets. I will now hand over to Carmen to discuss our full year results in detail.

Thank you, André. In summary, in 2025, the group delivered a strong financial performance. Total revenue grew to £3.4 billion, up 4.3% at constant currency and 1.1% at actual rates. Sterling strengthened compared to major currencies, impacting our revenue growth by a negative 320 basis points. Operating profit at constant rates was up 9.3% to £620 million, with operating margin of 18.1%, up year on year by 90 basis points at constant currency and 70 basis points at actual rates. Diluted earnings per share were 253.5 pence, with growth of 10.1% at constant rates and 5.4% at actual rates. Now turning to cash flow and net debt. Group delivered adjusted cash from operations of £762 million down from our 24 peak, largely due to EBITDA being impacted by translation and, of course, lower working capital change than the prior year. Adjusted free cash flow was £352 million down from our 24 peak due to a lower cash generated from operations, higher interest and borrowing costs, higher cash tax outflow following our strong EPS progression, and higher capex investments. Turning to our financial guidance for 26, we expect net finance costs to be in the range of 71 to 72 million pounds, excluding FX. We expect our effective tax rate to be between 25.5% and 26.5% Our minority interest would be between 21 and 22 million, and our CapEx investment would be in the range of 150 to 160 million pounds. Our financial net debt guidance prior to any material movements in FX or M&A is 930 million pounds to 980 million pounds. I'll hand back to André now.