Weak pound bolsters Intertek's full-year sales, dividend raised almost 20%

Intertek saw full-year 2016 sales rocket 18.5% to £2,567.0m as weakness in the pound continued to bolster its top-line.

The testing, inspection and certification specialist also reported a 8.9% organic sales increase to £2,321.0m, although at constant exchange rates that was reduced to a rise of just 0.1%.

Acquisitions added £242m to the total revenue figure, with management telling investors the company would continue to carry out M&A to strengthen its portfolio in "the right growth" areas.

Operating margins rose by 30 basis points to 16.0% at constant exchange rates. The full-year dividend was hiked 19.3% to 62.4p with the company committing to a dividend payout ratio of circa 40% of earnings.

"We believe Intertek remains a quality business, and has demonstrated the ability to generate high returns on invested capital, albeit these have declined in recent years," Numis analyst Steve Wool said in a research note sent to clients the previous day.

However, some observers believed the company's financials were now less transparent given changes in the reporting structure.