@ Book one: Strategic Report
l
We are pleased to share our
Annual Report & Accounts
in a unique, three-book format:
Book one: Strategic Report
Book one: Strategic Report
Where we discuss our growth
opportunities and strategic performance.
Contents
Book two: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Book three: Financial Report
Where we record our financial activities,
performance and position.
These separate, but connected books,
with their interconnected themes and
narratives, allow us to present what
we achieved in 2023 in a systemic,
end-to-end framework. They have
been designed to make it easier for our
stakeholders to fully understand our
business, how we bring quality, safety
and sustainability to life, what we
offer our clients and society, and the
opportunities ahead of us.
01 Let's make the world
amazing together
06 Chief Executive Officer's letter
11 Our strategy
16 Our business model
17 Who we are
18 What we do
20 Where we operate
22 How we do it
24 How we create value
26 Key performance indicators
30 Financial review
36 Operating review
36 Consumer Products
40 Corporate Assurance
43 Health and Safety
46 Industry and Infrastructure
49 World of Energy
52 Principal risks and uncertainties
58 TCFD statement
67 Non-financial and sustainability
information statement
Let's make the world
amazing together
and deliver sustainable growth
and value for all
Visit: intertek.com/investors
Intertek Group plc
Annual Report & Accounts 2023
Book two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report
Let's make the world amazing together
As a purpose-led organisation,
we are energised about
making the world a better
place through the partnerships
we have built over the years
with all our stakeholders: our
people, customers, communities
and shareholders.
We are purpose-led and have a strong
track record of value creation for all
stakeholders. We believe that working in
partnership and understanding the needs
of each stakeholder is what it takes to
create sustainable growth and value for
all. We are proud of the progress we have
made over the years and equally there
is so much more we can do to make the
world a much better place.
We are truly energised about the future
growth opportunities to give our clients
an Amazing ATIC Advantage, bringing
quality, safety and sustainability to life
in all parts of the global economy. Our
people look forward to capitalising on
the strong partnerships we have with
our customers, suppliers, shareholders
and communities to do so.
Let’s make the world amazing together.
01
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Let's make the world amazing together Continued
Colleagues
Creating amazing opportunities for
our 44,000 people to thrive, always
striving to offer the best customer
service to our clients
We believe in the power of diversity,
equity and inclusion. Our success is
based on a well-established culture
of trust among colleagues who bring
passion and energy together with their
highly skilled technical expertise to
exceed the expectations of their
customers. We deeply value the rights of
our people across all our operations and
throughout our business relationships.
We want everyone to feel safe and
engaged, with access to limitless
personal growth opportunities.
87
(2022: 80)
ATIC Engagement Index score
To know that what we're doing
is making a real difference —
that's pretty empowering.
Vinu Abraham
Building & Construction, US
To find out more about how we create a supportive
and inclusive culture for all of our colleagues
Read pages 10-17 in Book two
02
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Let's make the world amazing together Continued
Customers
Supporting 400,000+ clients with
innovative solutions that enable them to
operate with higher standards on quality,
safety and sustainability in each part of
their value chain
We provide our customers with our industry
leading ATIC solutions to ensure their
products meet rigorous quality, safety,
regulatory, brand and sustainability
standards. With our expertise, they are able
to power ahead safely, to navigate complex
regulatory landscapes, gain access to new
global markets, and demonstrate systemic
and end-to-end assurance on all aspects of
their sustainability operations. Our clients
are increasing their focus on Risk-based
Quality Assurance to operate with
higher standards on quality, safety and
sustainability in each part of their value
chain, triggering a higher demand for
our ATIC solutions, which are powered
by our Science-based Customer Excellence
ATIC Advantage.
To find out more about the amazing work
we are doing for our customers
Read the operating review on pages 36–51
03
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Let's make the world amazing together Continued
Communities
Supporting and enhancing our
communities and the environment
across our global network of
state-of-the-art operations in
more than 100 countries
Intertek people are always working
to enrich the communities in which
we operate by actively engaging in
relevant initiatives such as community
programmes, volunteer activities,
partnerships with charities and social
development projects. Through these
efforts and making use of our Science-
based expertise, we are able to address
specific local social and environmental
needs, contributing to community
wellbeing and supporting sustainable
practices that will help build an ever
better world.
Solar-powered street lights for
rural Gurugram, India
In partnership with local charity Deep Welfare
Organisation, we installed solar-powered
street lights in five villages in Gurugram,
benefitting around 36,000 people.
Read more on page 35 of Book two
04
To find out more about how we are making
the world amazing for our communities
Read more on pages 33-39 of Book two
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Let's make the world amazing together Continued
Shareholders
Operating a high-quality earnings
model with a proven track record
of sustainable value creation over
the long term
As a purpose-led business focused on
growth, Intertek delivers sustainable
long-term value for our stakeholders.
We operate a differentiated, high-quality
growth business with excellent
fundamentals and intrinsic defensive
characteristics, giving our customers the
Intertek Science-based ATIC Advantage
to strengthen their businesses. Our
approach to value creation is based on
the compounding effect, year after year,
of margin accretive revenue growth, strong
cash generation and disciplined investments
in high-growth and high-margin sectors.
With our high-quality compounder earnings
model, we are focused on delivering
sustainable growth and value, harnessing
the attractive structural growth drivers
present across our global markets and
unlocking the significant value growth
opportunity ahead.
9% CAGR
2015-2023 total shareholder return
To find out more about how we create
long-term value for our shareholders
Read our financial highlights on page 8
05
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter
Chief Executive Officer's letter
let' s make the world
amazing for all
sta keholders
I would like to recognise
the contribution of our truly
amazing people, who have
delivered a strong performance
in 2023 for our company, our
clients, our shareholders and
society as a whole.
André Lacroix
Chief Executive Officer
06
In doing so, we have continued to
provide our many hundred thousand
clients the comprehensive ATIC
solutions they need, making us
their most trusted and valued
partner in meeting their Risk-based
TQA needs. With our constant
focus on improving our reach,
our insight and our capabilities,
we continued to deepen existing
relationships and attract new ones.
We launched our AAA differentiated
growth strategy in 2023, taking an
evolutionary approach, building on
our strengths to accelerate growth
for all, benefitting from the increased
investments of our clients in Total
Quality Assurance. We will capitalise
on our proven high-quality earnings
model to unlock the significant
value growth opportunity ahead,
while reinventing and improving
ourselves in those areas where we
can make an even greater difference
than we are achieving today.
At Intertek, our purpose-
led approach is making
the world ever better,
delivering sustainable
growth and value for
every stakeholder as an
amazing force for good –
from our people to our
clients, our communities
and our shareholders –
all the time.
The Science-based Customer
Excellence of our talented colleagues
around the world gives us a unique
competitive advantage, enabling
our clients everywhere to power
ahead safely and sustainably.
During the year we invested further in
our industry-leading ATIC (Assurance,
Testing, Inspection and Certification)
customer value proposition that
we pioneered in 2016, creating the
concept of Risk-based Total Quality
Assurance ('TQA') that redefined our
industry. It’s an approach that was
ahead of its time then and that has
underpinned our success in bringing
quality, safety and sustainability
to life, making us mission critical
to our clients and society.
Read more about ATIC on page 18
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report High-quality earnings model
Our proven, cash-generative earnings model is at the core of what makes us
successful. It is based on the delivery of our unique TQA value proposition. The
profitable delivery of ATIC services to customers operating in the structurally
attractive Consumer Products, Corporate Assurance, Health and Safety,
Industry and Infrastructure, and World of Energy sectors is dependent on our
capital-light business model, and entrepreneurial and Customer 1st culture,
which also enables us to respond quickly to new growth opportunities.
To maximise returns, we continue to invest in high-growth, high-margin
areas and maintain a disciplined approach to capital allocation.
GDP+ organic
revenue growth
in real terms
Investments in
high-growth and
high-margin
sectors
Margin-accretive
revenue growth
Intertek Virtuous
Economics
Disciplined
capital allocation
Strong free
cash flow
07
Chief Executive Officer's letter Continued
Excellence ATIC Advantage. Over the last
nine years, from 2014-2023, we have
delivered a CAGR of 5.3%, 6.1% and 6.0%
for revenue, operating profit and EPS,
notwithstanding the impact of Covid.
In May 2023, we unveiled our Intertek
AAA differentiated growth strategy to
capitalise on the best-in-class operating
platform we have built and target the
areas where we have opportunities to
get better. Our highly engaged, customer-
centric organisation is laser-focused
to take Intertek to greater heights
putting our AAA strategy in action
and continuing to deliver sustainable
growth and value for all stakeholders.
Based on our positive momentum, we
expect the Group will deliver a robust
performance in 2024 with mid-single
digit LFL revenue growth at constant
currency, margin progression and a
strong cash flow performance. We are
on track to get back to our peak margin
of 17.5% and beyond in the medium-
term, capitalising on the revenue growth
acceleration we are seeing for our ATIC
solutions, our disciplined performance
management and our investments in
high growth and high margin segments.
We believe in the value of accretive
disciplined capital allocation. In
recognition of our highly cash generative
earnings model, our strong financial
position, the Board’s confidence in the
attractive long-term growth prospects
for the Group and its ability to fund
continued growth investments, we are
increasing our targeted dividend payout
ratio to circa 65% of earnings from 2024.
As we move through 2024, our good
to great journey continues as we
consistently add to our core areas of
excellence and expertise. During 2023,
we made progress embedding recent
acquisitions, making new ones, and
launching new innovations and centres
of excellence throughout the business.
We are well positioned to help the world
operate with ever-higher quality, safety
and sustainability standards. We are
working harder than ever before to
ensure that everybody, everywhere has
the opportunity to benefit from the
quality excellence that our TQA solutions
deliver, enabling clients to resolve the
complex operating challenges they face.
Results in 2023
I would like to recognise all my colleagues
for their unwavering support enabling
us to deliver a strong 2023 performance
in revenue growth, margin, EPS, cash
and ROIC. Our revenue grew by 7.1%
at constant currency driven by a LFL
revenue growth of 6.2%, the highest in
the last 10 years, and the contribution
of our acquisitions. Our systemic
performance management drove strong
profit conversion with margins rising
60bps at constant currency, driving EPS
growth of 11.0% at constant currency.
Cash conversion at 122% was excellent.
We have delivered our highest ever cash
from operations of £749m resulting
in our net debt declining by £127m to
£611m. We have a strong balance sheet
giving us the ability to invest in growth.
ROIC increased by 250bps to 20.5%.
Our clients are increasing their focus
on Risk-based Quality Assurance to
operate with higher standards on quality,
safety and sustainability in each part
of their value chain, triggering a higher
demand for our ATIC solutions which are
powered by our Science-based Customer
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
Strategic highlights
Sustainability highlights
• As a purpose-led organisation, we
are energised about making the
world a better place through the
partnerships we have built over the
years with all our stakeholders.
• The Science-based Customer Excellence
of our talented colleagues gives us
a unique competitive advantage,
enabling organisations to power
ahead safely and sustainably.
• Our clients are increasing their focus
on Risk-based Quality Assurance to
operate with higher standards across
their value chain, triggering a higher
demand for our ATIC solutions.
• We launched our AAA differentiated
growth strategy to accelerate
growth for all, benefitting from
the increased investments of our
clients in Total Quality Assurance.
• We will capitalise on our proven high-
quality earnings model to unlock the
significant value growth opportunity
ahead, while improving ourselves
in those areas where we can make
an even greater difference.
• We are well positioned to continue
to deliver sustainable growth and
value for all our stakeholders.
• Levels of Hazard Observations increased,
reflecting greater levels of activity across
our sites as well as greater awareness
and reporting of health & safety overall.
• Since 2015, we have used the Net
Promoter Score (‘NPS’) process to
listen to our customers, enabling
us to improve our customer service
over the years consistently.
• We are driving environmental
performance across our operations
through science-based reduction
targets to 2030. Our rigorous
monthly performance management of
climate-related action plans delivered
operational market-based emissions
reductions of 10.8% against 2022 and
36.7% against our base year 2019.
• In 2023, our greenhouse gas ('GHG')
emissions reduction targets were
validated by the Science Based
Targets initiative ('SBTi').
• We recognise the importance of employee
engagement in driving sustainable
performance for all stakeholders, and we
measure employee engagement against
our Intertek ATIC Engagement Index.
Our 2023 score was 87 (2022: 80).
• Our voluntary permanent employee
turnover improved to a low rate
of 12.3% (2022: 14.0%).
Financial highlights
• Revenue of £3,328.7m, +7.1% at constant
Rev
enu
e
currency and +4.3% at actual rates
• Highest LFL revenue growth in the last
10 years with 6.2% LFL revenue growth
at constant currency
• LFL of 8.2% in Corporate Assurance, Health
and Safety, Industry and Infrastructure,
and World of Energy combined; Consumer
Products LFL of 1.3%
• JLA, SAI and CEA acquisitions performing
well, and Controle Analítico and PlayerLync
integrations on track
• Adjusted operating profit of £551.1m,
+10.9% at constant currency and +6.0%
at actual rates
• Adjusted operating margin of 16.6%,
+60bps at constant currency and +30bps
at actual rates
• Adjusted diluted EPS of 223.0p, +11.0%
at constant currency and +5.6% at
actual rates
• Daily cash discipline delivers an all-time
high operating cash flow of £749.0m
with cash conversion of 122%
• Strong balance sheet; net debt reduced
by £127m to £611m, and leverage ratio
improved to 0.8x
• ROIC of 20.5%, +250bps year-on-year at
constant currency and at actual rates
• Cost reduction programme delivered
savings of £13m in 2023 and £10m
expected in 2024
• Proven high quality compounding model;
On track to deliver our medium-term margin
target of 17.5%+
• Robust 2024 outlook: Mid-single digit LFL
at constant currency, margin progression
and strong cash flow
• Full Year dividend of 111.7p up 5.6%
year-on-year; increasing targeted dividend
payout to circa 65% from 2024
08
32
,
£3
9m
(2022: £3,193m)
Like-for-like revenue1
£3,301m
(2022: £3,193m)
Adjusted free cash flow1, 2
Adjusted operating profit1,2
£378m
(2022: £386m)
£551m
(2022: £520m)
Statutory operating profit
Return on Invested Capital1
£486m
(2022: £452m)
20.5%
(2022: 18.0%)
Adjusted operating margin1,2
Statutory operating margin
16.6%
(2022: 16.3%)
Dividend per share3
111.7p
(2022: 105.8p)
Statutory diluted EPS
183.4p
(2022: 178.4p)
14.6%
(2022: 14.2%)
Adjusted diluted EPS1,2
223.0p
(2022: 211.1p)
1. Definitions of the alternative performance
measures, metrics and constant rates can be
found in Book three, page 64.
2. Adjusted operating profit, adjusted operating
profit margin, adjusted diluted earnings per share
(‘EPS’) and adjusted free cash flow are non-GAAP
measures. Adjusted measures are stated before
Separately Disclosed Items, which are described in
note 3 to the financial statements in Book three,
page 11. Reconciliations between statutory and
adjusted measures, as well as return on invested
capital and cash conversion, are shown in the
Financial Review.
3. Dividend per share for 2023 is based on the
interim dividend paid of 37.7p (2022: 34.2p) plus
the proposed final dividend of 74.0p
(2022: 71.6p).
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
In Action
Delivering best in class digital experience
on intertek.com
At the end of 2023, we proudly
launched our redesigned website
intertek.com, a higher energy and
more immersive platform for a best
in class customer experience.
Built on cutting-edge technology,
the website is more user-friendly,
with easier and faster navigation,
and hosts a range of rich content,
giving visitors increased insight into
the Science-based Expertise behind
our unique, industry-leading ATIC
solutions.
The new design has been tailored
to a range of different audiences,
meaning that customers, investors,
analysts, employees and even
casual visitors can all come away
with a greater appreciation of how
Intertek is helping to bring quality,
safety and sustainability to life,
every day.
To stay up-to-date with our latest
news and developments, visitors
can sign up for online alerts.
Visit: intertek.com
Chief Executive Officer's letter Continued
Building a safer and more sustainable
world by harnessing the increased
demand for our ATIC solutions
In a post-Covid world, corporations are investing more
in quality, safety and sustainability, accelerating the
demand for our ATIC industry-leading solutions.
We operate in an industry with compelling structural
growth drivers. As the global population grows,
regulation becomes more complex and consumers focus
more than ever before on safety, performance and
quality. As a result, the need for end-to-end traceability
continues to become more urgent and the transition to
renewable energy increasingly important and rapid.
Based on our customer research, these attractive
structural growth drivers are being augmented
by the following set of emerging trends.
Higher investments in safer supply
Covid-19 has proved to be a catalyst for many corporations
to improve the resilience of their supply chains. We are
seeing a significant change of focus from our clients when
it comes to managing their value chains, as they recognise
the need for better data throughout their supply chains,
tighter risk management with razor-sharp business continuity
planning, and a more diversified portfolio strategy. All this
means they are more prepared to invest in their processes,
technology, training and independent assurance.
Higher investments in innovation
Our clients have also realised that they need to invest
more in product and service innovation. That’s the only
way they can meet the changing needs of their customers.
In a 2023 survey by Capgemini, 67% of Research &
Development leaders expect to increase their investments
in R&D. For us, these investments in innovation add
up to a higher number of Stock Keeping Units, or SKUs,
and tests per SKU. SKUs are vital tools for retailers and
wholesalers, allowing them to identify products and
monitor stock levels across systems and channels.
A step change in sustainability
Sustainability is the movement of our time, and the
demand for clear and transparent sustainability-related
information is growing with every government regulation.
Consumers are looking for companies they can trust,
and ones that align with their own values. Meanwhile
investors are seeking more transparency, and stakeholder
expectations are rising. With our industry-leading Total
Sustainability Assurance solutions, we provide a unique
end-to-end solution that includes our wide variety of
sustainability services and independent certifications to
meaningfully demonstrate commitment to sustainability.
Higher growth in the world of energy
The growth opportunities in the world of energy are
truly exciting, as the demand for energy grows and the
transition to greener energy accelerates. Having seen
the recent concerns over energy security and given the
under-investments in traditional oil and gas exploration
and production in the last decade, along with the lack of
scale for renewables, investments for production in both
sectors are set to increase. This is a significant opportunity
for Intertek, and we're working to lead the way with our
science-based fuels innovation and sustainability solutions.
Increase in new clients
There is also significant growth in the number of companies
globally, largely due to the lower barriers to entry in many
sectors for any brand with e-commerce capabilities. So
many of these young companies have one key thing in
common – a lack of Quality Assurance expertise. This
makes them perfect clients for our Global Market Access
solutions and, as a decentralised customer-focused
organisation, we have an amazing track record of winning
new clients and maintaining long-term client relationships.
Read more about ATIC on page 18
09
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
To seize the significant growth value
opportunity ahead we will be laser-
focused on three strategic priorities and
three strategic enablers. Our strategic
priorities are defined as Science-based
Customer Excellence TQA, Brand
Push & Pull, and Winning Innovations,
and our three strategic enablers
are based on 10X Purpose-based
Engagement, Sustainability Excellence
and Margin Accretive Investments.
We will both further improve where
we are already strong and address
the areas where we can get better.
At the Capital Markets Event we set
out how our passionate, innovative
and customer-centric organisation is
energised to take Intertek to greater
heights delivering AAA performance
for all stakeholders. We are focused on
delivering value consistently, targeting
mid-single digit LFL revenue growth,
margin accretion to return to our 17.5%
peak margin and beyond, strong cash
generation and a more agile organisation
while pursuing disciplined investments in
attractive growth and margin sectors.
See our business model on pages 16-25
Our high-quality portfolio is poised for faster growth:
• The depth and breadth of our ATIC solutions positions us well to seize the
increased corporate needs for Risk-based Quality Assurance
• All of our global business lines have plans in place to seize the exciting growth
drivers in each of our divisions
• At the local level, our country-business mix is strong, with the majority of our
revenues exposed to fast-growth segments
• Geographically, we have the right exposure to the structural growth
opportunities across our global markets
Visit: intertek.com/investors/
capital-markets-event-presentations/
Intertek ‘AAA’
differentiated
growth strategy
We have made strong progress between
2014 and 2023 delivering sustainable
growth and value for our stakeholders,
and we are very excited about the
significant growth value opportunity
ahead, capitalising on our Science-based
Customer Excellence TQA advantage.
At our Capital Markets Event last year, we
unveiled our Intertek AAA differentiated
growth strategy to capitalise on the
best in class 5x5 operating platform
we have built in recent years and
to target the areas where we have
opportunities to get better.
Our Intertek AAA differentiated
growth strategy is about continuing
our good to great journey and
unlocking the significant value growth
opportunity ahead by being the
best and creating significant value
for every stakeholder every day.
We want to be the most trusted TQA
partner for our customers, the employer
of choice with our employees, to
demonstrate Sustainability Excellence
everywhere in our community and
deliver sustainable growth and
value for our shareholders.
10
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
Introducing our Amazing ATIC Advantage good to great strategy
AAA means giving
our clients an 'Amazing
ATIC Advantage' to make
their businesses stronger
It’s about being the absolute
industry champion by providing
clients with the best ATIC solutions.
Being the best for
every stakeholder
all the time
We want to be the most trusted
TQA partner for our customers,
the employer of choice for our
employees, to demonstrate
Sustainability Excellence
everywhere in our community
and deliver significant growth
and value for our shareholders.
Customers
Be the most trusted
TQA partner
To achieve this ambition, we
will focus on three goals:
• 10X purpose-led engagement
in every team
• Higher revenue with
existing customers
• Step up the acquisition
of new clients
Our goals
Our AAA differentiated
growth strategy
We will reach our goals by implementing our
AAA differentiated growth strategy to unlock
the significant value growth opportunity ahead.
Our strategic
priorities
Our strategic
enablers
Science-based TQA
Customer Excellence
We invest in the skills we
need to deliver operational
excellence and superior
customer service
10X Purpose-based
Engagement
Working with Gallup, we’re
giving our teams the data
they need to unleash their
full potential
+
+
Brand Push & Pull
We are leveraging the strength
of our brand to become a
B2B2C brand, a real first in
our industry
Sustainability
Excellence
Our integrated control and
compliance approach ensures
we deliver on all aspects
of sustainability
+
+
Winning Innovations
Our innovative solutions help
clients resolve their quality,
safety and sustainability
challenges
Margin Accretive
Investments
Our investments help us
leverage our scale and ensure
our portfolio is poised for
faster growth
Shareholders
Sustainable growth
and value
Employees
Employer of choice
every day
Community
Sustainability
Excellence
everywhere
11
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
Leading the industry
through innovation
and M&A
True to our pioneering spirit, we at
Intertek continue to constantly reinvent
ourselves, delivering winning ATIC
solutions which allow our clients to
resolve the complex Quality Assurance
challenges they face. That’s why we
launched Global Market Access ('GMA'),
a one-stop digital knowledge platform
which helps retailers of soft goods,
hard goods and personal protective
equipment better understand and
comply with regulations across
the world, facilitating significant
improvements in consumer safety.
Likewise, the launch in Türkiye of our
pioneering new platform iCare has made
it possible for fashion manufacturers
to access real-time information about
the status and progress of their
submitted samples in just a few clicks,
meaning they can effortlessly manage
all their testing projects through one
centralised platform, accessible 24/7.
We also set up several new centres
of expertise, including our state-of-
the-art Battery Xcellence Centre in
Mestre, near Venice in Italy, and our
Electrification Centre of Excellence in
Plymouth, Detroit, allowing us to meet
rising demand from two of the world’s
fastest growing sectors for Intertek’s
Science-based TQA solutions.
Another highlight from 2023 was the
introduction of advanced PhotonAssay
technology into our Minerals laboratory
in Tarkwa, Ghana – a revolutionary new
technique that delivers faster results and
uses fewer hazardous chemicals than
other testing procedures, minimising
our impact on the environment.
Finally, we have also seized a number
of attractive growth opportunities,
strengthening our portfolio in high-
growth, high-margin areas through
recent acquisitions like SAI Global
Assurance, JLA Brasil Laboratório
de Análises de Alimentos S.A., Clean
Energy Associates LLC and Controle
Analítico Análises Técnicas Ltda that
have allowed us to further expand our
share of the global Quality Assurance
market and have been successfully
integrated and are performing well
and in line with our expectations.
The acquisition of PlayerLync Holdings
Inc., a leading provider of training and
learning content to frontline workforces
at some of the world’s leading brands,
leaves us exceptionally well-placed to
take advantage of fast-growing market
demand for software-based, technology-
enabled People Assurance services.
These developments reflect the
commitment we share at Intertek to
drive continuous innovation which
powers new growth opportunities
and helps to make our world a safer,
more sustainable, and amazing place.
We will continue to look at M&A
opportunities in attractive high-margin
and high-growth areas to broaden our
ATIC portfolio of solutions with new
services we can offer to our clients
and to expand our regional coverage.
Read more about our innovations in the
Operating review on pages 36-51
12
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
Total Sustainability Assurance
TSA is a global programme that leverages our footprint in over 100 countries
and covers all industries. We have built a team of sustainability experts in
every major region, who can help with both a global and local perspective.
Read more about how we help our clients meet their sustainability
goals in the Sustainability Report, Book two, pages 18-25.
Intertek Operational
Sustainability Solutions
enable companies to
understand, achieve and
validate their existing and
emerging sustainability
goals for their products,
assets, facilities, systems,
processes and the
environment.
Providing independent
verification of sustainability
disclosures and reporting,
Intertek ESG Assurance
enables companies to
identify areas of risk and
impact, define their
sustainability strategies
and prepare ESG reports.
Intertek Corporate
Sustainability Certification
covers topics from
Quality and Safety
to the Environment
and Communication &
Disclosure, enabling clients
to verify their corporate
sustainability performance
across the ten most
essential corporate
sustainability subject areas.
Among other key developments
during the year, we received AAA
accreditation from the MSCI ESG ratings
and were included for the seventh
consecutive year in the FTSE4Good
index. These and many other initiatives,
challenges and achievements relating
to the environment are described in
depth in our Sustainability Report.
We continued to deliver progress on
our health & safety performance,
with a low Total Recordable Incident
Rate. We also recorded an employee-
engagement score of 87 against our
Intertek ATIC Engagement Index,
compared with 80 in 2022. And our
voluntary permanent employee turnover
during the year stood at the low rate
of 12.3% compared to 14.0% in 2022.
Read more about Sustainability Excellence
in Book two
Our TSA approach uses the deep
scientific, engineering and auditing
expertise of our sustainability teams to
meet our clients' needs; with industry-
agnostic, industry-specific or tailored
solutions; with holistic solutions
covering everything from consulting
and gap assessment, to training, to
regulatory reporting and corporate
certification; and with actual, real-
world improvements in sustainability
in their operations and value chains.
At Intertek, we live by the same values
that our wide range of sustainability
services enable our clients to embrace.
We have also committed to ambitious
science-based targets to reduce
our own operational emissions and
attain net zero carbon emissions
across our entire footprint by 2050.
I am particularly pleased that during the
year we received validation from the
Science-Based Targets initiative ('SBTi')
for our targets relating to reducing
greenhouse gas ('GHG') emissions.
I am delighted that in validating these
targets, the SBTi has found that we
are in line with the ambition to restrict
global temperature increases to 1.5°C
above pre-industrial levels by 2050. I am
also happy to report that our rigorous
monthly performance management of
climate-related action plans delivered
operational market-based emissions
reductions of 10.8% against 2022 and
36.7% against our base year 2019.
Sustainability at the heart
of everything we do
Nowhere is the growth acceleration
we are seeing stronger than in the
area of sustainability. This is the
movement of our time and is central
to everything we do at Intertek –
anchored in our Purpose, our Vision,
our Values, and now in our AAA
differentiated growth strategy as well.
Sustainability is important to all
stakeholders in society who are
consistently demanding faster
progress and greater transparency
in sustainability reporting.
Companies everywhere therefore
continuously need to upgrade
and reinvent how they manage
their sustainability agenda,
particularly with regard to how
they disclose their performance.
This is why, under our global Total
Sustainability Assurance ('TSA')
programme, we provide our clients
with proven independent, systemic
and end-to-end assurance on all
aspects of their sustainability
strategies, activities and operations.
The TSA programme comprises
three elements:
• Intertek Operational Sustainability
Solutions
• Intertek ESG Assurance
• Intertek Corporate Sustainability
Certification
Visit: intertek.com/sustainability/
13
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
Connect with our 'You'll be amazed' campaign
intertek.com/amazed
linkedin.com/company/intertek
You’ll be amazed
As an industry pioneer, on our good
to great journey, we have been
focused across all of our business
lines on making Intertek the global
icon for Total Quality Assurance.
It is to bring awareness of the sheer
scope of our amazing people’s expertise
that we have launched the ‘You’ll
be amazed where you find Intertek’
campaign, the industry’s first ever brand
campaign that reaches out directly to
consumers, highlighting the mission-
critical role that Intertek plays in areas
from pioneering cancer research to
ensuring the safety of wind turbines and
helping to assure that the fuel inside Air
Force One is fit for flight before take-off.
By targeting a consumer audience
for the first time, the campaign aims
to create awareness outside a purely
business-to-business environment.
This campaign celebrates that Intertek
has a positive impact on all aspects of
modern life, by shining a light on the
incredible work of our colleagues through
social media content and stories.
By helping to make our brand a
household name for quality, safety and
sustainability around the world, it will
place us more front-of-mind for new
decision makers as we become the B2B2C
brand icon for Total Quality Assurance.
14
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's letter Continued
I am truly proud to be working
alongside them all to make the world
amazing. Read more about our culture
and people in the Sustainability
Report, Book two pages 10-17.
During the year, we also announced
the establishment of a new Group
Executive Committee to take advantage
of the exciting growth opportunities
ahead, in a world where companies
are increasing their focus on Risk-
based Quality Assurance to make
their businesses stronger. Read more
about our Group Executive Committee
on page 53 in the Directors' Report
in Sustainability Report, Book two.
Our goal is to have fully engaged
employees working in a safe environment.
Our amazing people
I would like to highlight the contribution
of our truly amazing people, who
once again have delivered a strong
performance for our company, our clients,
our shareholders and society as a whole.
Across the organisation, our people are
truly engaged about the opportunity
we have to deliver on our Purpose of
bringing quality, safety and sustainability
to life. This genuine commitment and
customer-centric passion is at the heart
of our culture, and our determination to
be the agents of positive change around
the world is evident in everything we do.
We have a highly disciplined approach
to performance management, which
underpins our operational excellence
and continuous improvement approach
in everything we do. Our commitment
to excellence involves the constant
measurement of our progress against
a range of operational metrics, using
data intelligence to meticulously
gauge and understand our customer
service levels and turnaround times.
This approach, along with our unwavering
focus on quality at every site, is crucial
to our ability to deliver constant
improvement, with our commitment
to operational and health & safety
excellence to ensure that our customers
always receive a superior service.
Our ability to do this comes down to the
incredible energy of our 44,000 people
across the world, and I thank each and
every one of them for their unwavering
support, applying their Science-based
Customer Excellence that powers our
AAA differentiated growth strategy.
15
As we work with our clients to make
the world amazing together, we
are energised by the future growth
opportunities we can unlock by bringing
our clients the benefits of our Science-
based Customer Excellence Advantage.
That’s how we’ll continue to bring quality,
safety and sustainability to life in all
parts of the global economy, building
on the uniquely strong partnerships
we have in place – not only with our
customers, but also with our people,
suppliers, shareholders and communities.
Let’s make the world amazing together!
André Lacroix
Chief Executive Officer
Looking ahead:
let’s make the world
amazing together
The world has made tremendous
progress in the last 50 years to
operate with higher quality, safety and
sustainability standards. As I look ahead
to 2024 and beyond, I am confident
that we will continue to benefit from
the acceleration in growth for our
ATIC solutions as our clients increase
their investments in safer supply
chains, innovation and sustainability.
What we do is mission critical for the
world’s supply chains to operate safely
24/7. We are purpose-led and passionate
about bringing quality, safety and
sustainability to life, leveraging our
differentiated, high-energy, people-
centric culture to focus on maintaining
our strong track record of delivering
sustainable value for all stakeholders.
This makes us a force for good,
committed to helping the world become
amazing now and into the future.
We have been a pioneer for more than
130 years, providing Total Quality
Assurance to give our customers the
peace of mind they need to operate
safely and make their businesses
stronger with our ATIC solutions.
Our ATIC services are provided to all
industries, touching almost every aspect
of life from the ordinary to the incredible,
with a global network of state-of-the-art
operations in more than 100 countries.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model
Our business model
How we apply
our passionate
culture, science-
based expertise,
and resources
to create sustainable value
16
Who we are
We are passionate about our Purpose and
committed to being ever better. Our people are
guided by science, and sustainability is central
to everything we do.
Page 17
What we do
Intertek’s unrivalled Total Quality Assurance is
delivered consistently with precision, pace and
passion. Science-based Customer Excellence is
what makes us different.
Page 18
Where we operate
We report revenue, operating profit and margin
in five divisions: Consumer Products, Corporate
Assurance, Health and Safety, Industry and
Infrastructure, and World of Energy.
Page 20
How we do it
The industry-leading solutions we provide are
delivered with an unwavering commitment to our
customers and by investing in our global network.
Page 22
How we create value
Page 24
We are a force for good in the world, and our
solutions create meaningful and sustainable
long-term value for a broad range of stakeholders.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
Our Values
We are a global family
that values diversity.
We always do the right thing,
with precision, pace and passion.
We trust each other and
have fun winning together.
We own and shape our future.
We create sustainable
growth. For all.
Who we are
We are passionate about
our Purpose and 'Doing
Business the Right Way'.
We strive to make the
world a better, safer and
more sustainable place for
all, now and for future
generations.
Ever better
As a company we are committed to
becoming ever better in everything
we do. That means more than simply
seeking ways to constantly improve
our operations for enhanced efficiency
and effectiveness. It means investing
in our Science-based Customer
Excellence approach to provide superior
services, enabling our 400,000+
clients to become ever better too.
As the world changes, supply chains are
rapidly growing in size and complexity,
bringing unprecedented levels of
risk. As a result, it can become more
difficult for businesses to operate
safely and sustainably while delivering
quality products and services. In
these challenging times, companies
need a trusted partner, which is
why we provide our clients with a
unique risk-based approach to Quality
Assurance. We call this Total Quality
Assurance and only Intertek offers it.
Our Purpose
Bringing quality, safety
and sustainability to life.
Our Vision
To be the world’s most
trusted partner for
Quality Assurance.
Our people, culture and values
We value diversity and our core
strength is, and always will be, our
people. We are guided by science, and
it’s the way our colleagues combine
passion and innovation with customer
commitment that sets us apart.
Our decentralised operating culture
is built around strong values. These
values are inspirational and help us to
drive sustainable growth for all. They
guide our behaviours every single
day, underpinning the way we work,
guiding decision making and connecting
colleagues across the world.
Sustainability is central to everything
we do and we demonstrate our
commitment and passion to help our
clients make a difference, as well as
bettering ourselves every day.
Read more about Sustainability Excellence
in Book two
17
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
What we do
End-to-end ATIC services
Assurance
(21% Group revenue)
Tes ting
(46% Group revenue)
But the ATIC solutions we offer go
beyond the quality and safety of a
corporation’s physical components,
products and assets. They go to the
heart of the reliability of their operating
processes and quality management. We
call this Total Quality Assurance because
it enables our clients to mitigate risk
at every stage of their operations.
In short, we help our clients operate
in safety and make their businesses
stronger, making the world
amazing – a better, safer and more
sustainable place for everybody.
Enabling our customers to identify and mitigate intrinsic risk in
their operations, their supply and distribution chains and
quality management systems.
Evaluating how our customers’ products and services
meet and exceed quality, safety, sustainability and
performance standards.
Assurance goes beyond testing, inspection and certification to look
at the underlying elements that make a company and its products
successful. Intertek’s assurance solutions provide total peace of
mind to our clients that their operating procedures, systems and
people are functioning properly to provide competitive advantage.
Our extensive auditing, performance benchmarking and supply chain
services provide insight into every aspect of a company's operations,
right across the value chain, enabling informed business decisions.
Our training services ensure workforce competencies are current and
relevant. Our experts around the globe bring their knowledge to
clients on assessing overall performance, the quality and productivity
of laboratories, identifying and mitigating risks, streamlining
manufacturing processes and supply chains, and so much more.
Intertek’s testing services support the quality, performance,
regulatory compliance, safety, benchmarking, evaluation, validation,
analysis, and other requirements for products, components, raw
materials, sites, and facilities.
Our field and in-house laboratory testing services provide the
data our clients need to optimise the production process and get
products to market quickly and economically.
Our experts and global resources are equipped to meet testing,
timelines and product needs. As regulations change and technology
is created or innovated, our knowledge and industry expertise
ensure products and businesses are prepared to meet evolving
demands.
Visit: intertek.com/assurance/
Visit: intertek.com/testing/
Inspection
(25% Group revenue)
Certification
(8% Group revenue)
Validating the specifications, value and safety of our
customers’ raw materials, products and assets.
Formally confirming that our customers’ products and services
meet all trusted external and internal standards.
Independent third-party inspections help our clients around
the world protect their financial, branding and legal interests
throughout the entire supply chain. We offer inspection services to
manufacturers, retailers, traders, plant operators, governments and
other buyers and sellers of materials and products.
Inspections help minimise the risk of defective products by
ensuring they meet customer standards as well as industry and
government regulations. This serves to protect business interests,
manage risk and ensure quality products are manufactured and
delivered to their final destination at the correct specifications.
Our experienced inspectors help identify products and shipments
which may contain non-standard or non-compliant components and
materials. We also support the end-to-end life management of
facilities such as power plants and oil refineries.
Intertek maintains extensive global accreditations, and we are
recognised for our testing and certification services.
With both international and local proficiency, Intertek brings the
qualifications customers need to get products in front of the right
eyes. We offer certification programmes that achieve market entry
into a variety of global destinations, programmes for a more
eco-friendly environment, and programmes to verify social
accountability compliance for companies and their suppliers.
We help clients showcase and maintain products’ safety and
performance. Our leadership and expertise in regulatory standards
and certifications keep clients ahead of changes and challenges,
and our knowledge of the process from sourcing to market position
creates efficient, cost-effective solutions that meet best industry
practices.
Visit: intertek.com/inspection/
Visit: intertek.com/certification/
At Intertek, we bring our
clients the benefits of
our unique risk-based
assurance solution: Total
Quality Assurance.
For more than 130 years, we’ve been
a pioneer, innovating to mitigate
risk and bring quality and safety to
organisations. From our beginnings,
certifying grain cargoes and then testing
and ensuring the safety of Thomas
Edison's products, we have become a
global force for good: today, we are an
industry leader committed to bringing
quality, safety and sustainability to
life with precision, pace and passion.
Our work covers everything from testing
toys to inspecting power stations, from
supporting excellence in electric mobility
to promoting circularity in tourism, from
certifying vaccines to providing end-
to-end Quality Assurance across every
aspect of an organisation’s operations
and supply chain. Our innovation-led,
end-to-end value proposition supports
our clients 24/7, providing a unique and
fully integrated portfolio of Assurance,
Testing, Inspection and Certification
('ATIC') services in a way that delivers
complete peace of mind across all
products, services and operating systems.
18
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
Our TQA value proposition
Intertek’s innovation-led, end-to-end value proposition helps organisations to
mitigate risk at every stage and operate safely, effectively and with complete
peace of mind in a complex world.
Research &
development
Consumer
management
Raw materials
sourcing
Distribution &
retail channels
Component
suppliers
Transportation
Manufacturing
Most trusted partner
for Quality Assurance
Our leading ATIC solutions are mission
critical for the world to operate safely.
To become the most trusted partner
for Quality Assurance, our Science-
based TQA Experts always work to
deliver end-to-end quality, safety and
sustainability solutions that exceed
customer expectations. This clearly
sets us apart, meaning our clients
can rely on us to always deliver rapid
and accurate insight feedback.
Customer promise
Total Quality Assurance
expertise delivered
consistently with precision,
pace and passion, enabling
our customers to power
ahead safely.
We underpin this commitment
with thousands of customer
interviews every month,
ensuring we understand their
priorities and continuously
invest in the mission-critical
innovation they need.
19
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
Where we operate
Consumer Products
Read more on page 36
Five divisions, one
focus – to drive
amazing growth in
high-margin sectors
To reflect the value creation
drivers identified in the Intertek
AAA differentiated growth
strategy, we have enhanced
our segmental disclosures and
are reporting our revenue,
operating profit and margin
in five divisions.
20
Revenue
£935.8m
Adjusted operating profit
£246.8m
Adjusted operating margin
26.4%
Percentage of Group revenue
28%
Our Consumer Products division focuses
on the ATIC solutions we offer to our
clients to develop and sell better, safer,
and more sustainable products.
Global Business Units
Softlines
Hardlines
Electrical &
Connected World
Government & Trade Services
Structural growth drivers
• Growth in brands, SKUs &
e-commerce
• Regulation
• Sustainability
• Technology
• Growing middle classes
Corporate Assurance
Read more on page 40
Our Corporate Assurance division focuses
on the industry agnostic Assurance
solutions we offer to our clients to make
their value chains more sustainable and
more resilient.
Global Business Units
Business Assurance
Assuris
Structural growth drivers
• Sustainability
• Supply chain resilience
• Enterprise cyber-security
• People Assurance
• Regulatory Assurance
Revenue
£47 7.5 m
Adjusted operating profit
£109.4m
Adjusted operating margin
22.9%
Percentage of Group revenue
14%
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Our business model Continued
Health and Safety
Read more on page 43
World of Energy
Read more on page 49
Our Health and Safety division focuses
on the ATIC solutions we offer to our
clients to make sure we all enjoy a
healthier and safer life.
Global Business Units
AgriWorld
Food
Chemicals & Pharma
Structural growth drivers
• Healthier foods
• Growing populations
• Sustainable food sourcing
• Regulations
• New molecules
Revenue
£326.3m
£43.2m
Adjusted operating profit
Adjusted operating margin
13.2%
Percentage of Group revenue
10%
Industry and Infrastructure
Read more on page 46
Revenue
£728.6m
Adjusted operating profit
£65.6m
Adjusted operating margin
9.0%
Percentage of Group revenue
22%
Our World of Energy division focuses
on the ATIC solutions we offer to
our clients to develop better and
greener fuels as well as renewables.
Global Business Units
Caleb Brett
Transportation Technologies
Clean Energy Associates
Structural growth drivers
• Renewable energy
• Energy consumption
• Population growth/social mobility
• EV/Hybrid
• Greener fuels
Our Industry and Infrastructure division
focuses on the ATIC solutions our clients
need to develop and build better, safer
and greener infrastructure.
Global Business Units
Industry Services
Minerals
Building & Construction
Structural growth drivers
• Energy consumption
• Energy transition
• Population growth
• Infrastructure investment
• Greener buildings
Revenue
£860.5m
Adjusted operating profit
£86.1m
Adjusted operating margin
10.0%
Percentage of Group revenue
26%
21
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Our business model Continued
How we do it
Our global network
As the world becomes
more complex and
interconnected, our
customers face increased
risks to quality, safety and
sustainability.
As the global leader in Risk-based Quality
Assurance, we are uniquely positioned
to help customers gain an advantage
by mitigating risk. We enable them to
grow by building trusted relationships,
listening to their needs, developing
insights and using our data-science to
create amazing, innovative Total Quality
Assurance solutions that make the world
better, safer and more sustainable.
But it’s not just what we do that makes
us unique. The way in which we do it
and how we engage with our customers
also have a powerful positive impact.
Our expertise is guided by science
and delivered with an unwavering
commitment to give our clients an
Amazing ATIC Advantage. The interviews
we carry out every month through
our Net Promoter Score programme,
measure the percentage of customers
likely to recommend our services. This
is an invaluable tool in helping us get to
know our customers, understand their
evolving needs and ensure we deliver an
incredible service at every Intertek site.
Every one of our 44,000 employees in
our global network, based in more than
100 countries, works hard to understand
the challenges our customers face. Then,
by working in close partnership with one
another, we can collectively focus on
making the world amazing, together.
22
1,000+
Laboratories and offic
es
44,000
Employees
3,000
Auditors
100+
Countries
150,000+
Audits
100+
Languages
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Our business model Continued
Our Science-based TQA experts provide clients with innovative
ATIC solutions in our industry-focused Centres of Excellence.
Our Centres of Excellence
Electrification Centre of Excellence in
Plymouth, US: Supporting the transition
towards electric mobility
What it is: Strategically
located near Detroit in the
epicentre of the automotive
industry, our Electrification
Centre of Excellence in
Plymouth, Michigan, offers
some of the most extensive
testing capabilities in North
America for electric vehicle
batteries and supply
equipment. Through science-
based Total Quality Assurance
solutions, this facility plays
a crucial role in supporting
manufacturers in the transition
to greener transport.
Customer benefit: With sales
of electric vehicles growing
rapidly, our Electrification
Centre of Excellence helps
meet the automotive
industry’s increasing need
for regulatory support and
safety and validation testing.
As electrification technologies
continue to advance, the
facility will support the safety,
performance and functionality
of electric vehicles, battery
packs, charging systems and
their related components.
Visit:
intertek.com/automotive/detroit
23
Battery Xcellence Centre Supporting
sustainable energy solutions worldwide
Electric Vehicle ('EV') Centre of
Excellence in Milton Keynes, UK
Our EV Centre of Excellence testing facility in
the UK supports manufacturers to develop next-
generation electric propulsion systems, from high-
speed motor testing to full vehicle validation
capabilities. Our global network of automotive
testing facilities can support manufacturers and
suppliers with a wide portfolio of bespoke solutions
and capabilities, such as engine and hybrid testing,
EV fluids, and fuel, additive and lubricant testing.
Maison Centre of Excellence in
Florence, Italy
Based in Lastra a Signa, the heart of Italy's garment
manufacturing district, Intertek's Maison Centre
of Excellence is our innovative experiential space
and adjacent world-class lab where science meets
luxury. Bringing together – virtually or face to face
– our industry experts, forward-thinking luxury and
fashion brands, industry leaders, academics and
a host of textile industry participants to collaborate
and take bold new ideas and turn them into reality.
Minerals Global Centre of Excellence in
Perth, Western Australia
A technology and innovation centre with a focus on
automation and sustainability to provide our Minerals
clients with faster, safer, higher quality, and more
efficient analytical solutions. Located in Perth Australia,
a key hub for the minerals and mining industry, this
state-of-the-art lab gives our customers access to
trusted expertise across the minerals supply chain.
Customer benefit: On the
road to net zero, energy
storage is increasingly critical,
and this new facility helps
customers in Italy and the
South Europe region navigate
the rapidly evolving regulatory
environment for batteries and
battery-operated products.
Our Italian team will support
businesses across a range of
sectors – including automotive,
transportation, energy and
consumer goods – in taking
their products from design
to compliance evaluation
and global market access.
Visit: intertek.com/batteries
What it is: Our new 'Battery
Xcellence Centre' in Mestre,
Italy, features the latest
technologies for testing
battery and energy storage
systems, along with unrivalled
industry expertise. With
equipment including battery
cyclers, climatic and salt-spray
chambers, anti-fire containers
and an altitude test chamber,
the centre meets the testing
needs for transportation and
storage safety, functional
safety, and performance for
a wide range of cells and
battery packs. This state-of-
the-art facility in Italy joins our
global network of specialist
centres strategically located
in key markets including the
USA, China, Taiwan, India,
Hong Kong and Europe.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
How we create value
People
Customers
Our Purpose is to bring
quality, safety and
sustainability to life.
Here, we explain how we do
this for our Stakeholders.
Section 172 statement
In its discussions and decisions during
the year, the Board of Directors has
acted in the way that it considers, in
good faith, would be most likely to
promote the success of the Group for
the benefit of its members as a whole
(having regard to stakeholders and the
matters set out in sub-sections 172(1)
(a)–(f) of the 2006 Companies Act).
Details of how the Board has engaged
with stakeholders and how it has had
regard to their interests is set out in
Book two.
Section 172 is set out on pages 56–61
in Book two
24
We create amazing opportunities for our 44,000
people to thrive, always striving to offer the best
customer service to our clients.
Why they are important to us
Our people are our most valuable asset and are critical to our
success. Customer-centric and passionate about what they do,
they deliver sustainable value through unmatched expertise
and quality of work for our customers every day.
How we engage
We create a high-performance, growth-oriented, inclusive and
caring culture with clear, transparent communication and regular
recognition, in which each colleague has a personal growth plan.
How they have benefitted in 2023
• Launch of Champions engagement programme
• Consistent performance management approach, talent
development and growth planning
• '10X Leadership' development events and '10X Coaching'
for executives
• Training sessions on diversity, equity and inclusion through
our MOSIAC programme
• Enriched extensive learning and development material
through Lucie, our global Learning Management System
• Engaging employee communication channels
We support 400,000+ clients with innovative
solutions that enable them to operate with
higher standards on quality, safety and
sustainability in each part of their value chain.
Why they are important to us
Our customers are at the centre of everything we do, and
delivering the highest standards of customer service is a crucial
aspect of becoming the world’s most trusted TQA partner.
How we engage
We continuously engage and build our relationships with
customers, and closely analyse our NPS data.
How they have benefitted in 2023
• Communication, partnership and 24/7 support
• Refreshed intertek.com to provide best-in-class digital
customer experience
• Fast development of innovative Risk-based Quality
Assurance solutions
• Training and webinars from all business lines, covering
all industries
• Digital customer portals for improved efficiency,
productivity and visibility
• Digital directories providing our clients' customers with
access to product and supply chain information
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our business model Continued
Investors
Communities
Governments and regulators
We operate a high-quality earnings model with a
proven track record of sustainable value creation
over the long-term.
We support and enhance our communities and the
environment across our global network of state-
of-the-art operations in more than 100 countries.
Why they are important to us
Delivering for our investors drives our ongoing success,
enabling us to deliver for all stakeholders today and tomorrow.
How we engage
We engage with existing and potential investors and sell-side
analysts through regular trading updates, investor
conferences and roadshows throughout the year.
How they have benefitted in 2023
• Stock exchange announcements, including financial results
• Investor roadshows and participation in investor conferences
• May 2023 Capital Markets Event
• Meetings and calls
• Annual General Meeting
• Annual Report, ESG Reporting Index
• Shareholder information on intertek.com
• Improved Investor section on intertek.com
Why they are important to us
Our businesses and people are part of the communities
in which we work and are dedicated to supporting
organisations and initiatives that improve the environment,
and the lives of local people. We are a force for good, close
to home, that makes the world amazing for everyone.
How we engage
Our businesses regularly engage with and contribute
to our communities, and many colleagues support
local and charitable causes that reflect the
diversity of our communities and people.
How they have benefitted in 2023
• Support for and partnerships with charities and NGOs
• Focused activities to improve local communities
and environments
• BBEB.com platform to share impactful stories and inspire
positive change in the world
Governments and regulators expect compliance
with all global, regional and local regulation,
responsible business practices and collaboration
on the transition to net zero.
Why they are important to us
‘Doing Business the Right Way’ is part of who we are. As a
responsible business, we are dedicated to engaging positively
with governments and regulators to support our communities
and comply with global, regional and local regulations.
How we engage
We interact with trade associations and governmental
authorities to provide input into industry and regulatory
improvements in product safety, quality, sustainability and
risk assurance. Interactions with governments, governmental
authorities and regulators are reviewed by our Group Legal
& Risk functions to ensure we fully comply with all laws
and regulations.
How they have benefitted in 2023
• Our businesses’ economic and tax contribution
to governments and communities supports the basic
infrastructure of society
25
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Key performance indicators
Key performance indicators
Financial
Strong 2023 performance
in revenue, margin, EPS,
cash and ROIC
Disciplined performance management
focused on margin accretive revenue
growth with strong cash conversion
and capital allocation to drive strong
returns on invested capital
26
The Group uses a variety of key performance indicators (‘KPIs’)
to monitor performance and measure the financial impact of
the Group’s strategy. Where applicable, KPIs are based on
adjusted measures in order to provide a meaningful and
consistent year-on-year comparison. An explanation and
reconciliation of statutory to adjusted performance measures
is given on page 33. A glossary of performance measures is
provided in Book three, page 64.
Key
Adjusted actual rates
Adjusted constant rates
2023 Adjusted
2022 Adjusted
Statutory actual rates
Statutory
1. Revenue, adjusted operating profit and ROIC are recalculated using 2022 exchange rates to form the basis
for Executive Director remuneration, as described in more detail in Book two, page 94.
2. Adjusted operating profit, adjusted operating margin, adjusted cash flow from operations, adjusted free cash flow and
adjusted diluted earnings per share are stated before Separately Disclosed Items, which are described on page 32.
There is no difference between adjusted and statutory revenue.
3. Dividend per share is based on the interim dividend of 37.7p (2022: 34.2p) plus the proposed final dividend of 74.0p
(2022: 71.6p).
4. 2022 ROIC has been prepared using 2023 average exchange rates for adjusted operating profit and adjusted tax,
and year-end 2023 exchange rates for invested capital. 2022 ROIC at actual rates was 18.0%.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Key performance indicators Continued
Revenue1 (£m)
Revenue growth measures how well the Group is
expanding its business and includes currency impacts.
Like-for-like revenue (£m)
Revenue growth, including acquisitions following their 12-month
anniversary of ownership and excluding the historical
contribution of any business disposals/closures excluding
acquisitions and disposals.
Cash flow from operations2 (£m)
Shows the ability of the Group to turn profit into cash.
4.3%
7.1%
3.4%
6.2%
3.7%
3.1%
2023
2022
3,329
2023
3,193
2022
3,301
3,193
2023
2022
726
704
749
722
Operating profit1,2 (£m)
Measures profitability of the Group and includes
currency impacts.
Operating margin1,2 (%)
Measures profitability as a proportion of revenue.
Return on invested capital at
constant rates1,4 (%)
Measures how effectively the Group generates
profit from its invested capital.
6.0%
10.9%
7.5%
30bps
60bps
40bps
250bps
250bps
2023
2022
486
452
551
520
2023
2022
14.6
14.2
16.6
16.3
2023
2022
Diluted earnings per share2 (pence)
A key measure of value creation for the Board and for shareholders.
Dividend per share3 (pence)
Measures returns provided to shareholders.
Adjusted free cash flow2 (£m)
Measures the cash available to shareholders.
5.6%
11.0%
2.8%
5.6%
183.4
178.4
223.0
2023
211.1
2022
111.7
105.8
2023
2022
2023
2022
27
20.5
18.0
(2.0%)
378.4
386.3
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Key performance indicators Continued
Non-financial
Health & safety
Customer satisfaction
We measure our success by tracking both non-financial
and financial key performance indicators that reflect
our strategic priorities. We continue to review the
sustainability areas that are most material and relevant to
our stakeholders and have set ourselves targets in those
areas that are aligned to our corporate strategy.
Total Recordable Incident Rate ('TRIR')
Recordable incidents include medical treatment
incidents, lost time incidents and fatalities per
200,000 hours worked.
Customer focus
Average number of Net Promoter Score ('NPS')
interviews carried out each month.
Why we measure it
A reduction in incidents is an important
measure of the effectiveness of our safety
culture. It also lowers rates of absenteeism
and costs associated with work-related injuries
and illnesses.
Why we measure it
Customers are our priority. Since 2015, we
have used the NPS process to listen to our
customers. These insights give us a deep
understanding of what our customers need
and want, fuelling our innovations.
Total Recordable Incident Rate
Average NPS interviews per month
0.8
0.7
0.6
0.5
0.4
0.3
0.2
2020
2021
2022
2023
2023
2022
2021
2020
5,700
5,400
6,000
6,000
1. Eligible employees include those with access to the LUCIE training platform and those receiving compliance
training face to face. New joiners complete training throughout the year as part of their induction.
Target
TRIR of less than 0.5 per 200,000 hours worked.
Target
We will continue to aim to conduct at least
6,000 NPS interviews per month.
28
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Key performance indicators Continued
Environment
Employees
Diversity, equity and inclusion
Compliance
Operational emissions
With the adoption of our new near-term absolute
emissions reduction targets, we now measure
our environmental performance against this.
Operational emissions comprise our scope 1,
scope 2 and scope 3 (business travel and
employee commuting).
More from page 26 in Book two
Voluntary permanent employee
turnover and employee engagement
Voluntary permanent leavers are employees who
choose to leave the Group themselves. This does
not include employees on a fixed-term contract.
Intertek ATIC Engagement Index – based on the
key drivers of sustainable value creation and
which measures engagement on a monthly basis
in every operation with the following metrics:
Net Promoter Score, Customer Retention,
Quality, Voluntary Permanent Employee
Turnover and Total Recordable Incident Rate.
Gender balance
Percentage of women in senior management
roles (Group Executive Committee and their
direct reports).
Compliance training
Completion of annual compliance training by
eligible employees1 (online or face to face,
when available) during the training window.
More from page 10 in Book two
More from page 40 in Book two
Why we measure it
We measure our carbon emissions to reduce
our impact on the environment and increase
operational efficiency. We track both location-
based and marked-based scope 2 emissions.
Why we measure it
Ensuring employees are engaged is essential
to talent retention and we measure and monitor
this closely at a global and local level through
our voluntary turnover rate.
Why we measure it
We promote diversity in all its forms, including
gender, age, sexual orientation and disability, as
well as having an ethnic and social make-up that
reflects broader society. Achieving better
gender balance is a driver of progress.
Why we measure it
Our commitment to the highest standards of
integrity and professional ethics is embedded
in the Group’s culture through the integrity
principles set out in our Code of Ethics. Every
year, to support continuing understanding in
this area, our people are required to complete
our comprehensive training course.
Employee voluntary turnover and
Intertek ATIC Engagement index
Key financials
2020
2021
2022
2023
Operational emissions (in tCO2e)
300,000
250,000
200,000
150,000
100,000
50,000
0
Employee
voluntary turnover
(% of permanent
employees)
Intertek ATIC
Engagement
index score
2019 2020 2021 2022 2023
9%
13%
14% 12.3%
89
80
80
87
Male
Female
Women in senior management (%)
Training completion by eligible employees1 (%)
2023
2022
2021
2020
76.4
23.6
79.2
20.8
77.0
23.0
76.7
23.3
2023
2022
2021
2020
97.6
96.8
94.2
95.6
Target
2030: Reduce absolute scope 1, scope 2
and scope 3 (business travel and employee
commuting) by 50% vs 2019 base line.
Target
We aim to keep our voluntary permanent
turnover rate below 15% and increase our
Intertek ATIC Engagement Index to 90.
Target
2025: We aim to increase the proportion of
women in senior leadership roles to 30%.
Target
We aim to achieve 100% completion of our
annual compliance training by eligible employees.
29
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Financial review
Financial review
Financial highlights
Intertek 's AAA differentiated
growth strategy is delivering
earnings growth and strong
cash flow
Our proven high-quality earnings
model and daily cash discipline
have delivered earnings growth
and an all-time high adjusted
operating cash flow, driving a
reduction in net debt, negative
working capital and a strong
balance sheet.
Colm Deasy
Chief Financial Officer
30
£3,329m
Revenue up
4.3% 7.1%
£486m
Statutory operating p
7.5% 13.0%
rofit up
£551m
14.6%
Adjusted operating
6.0% 10.9%
profit up
Statutory operating margin up
40bps 80bps
16.6%
Adjusted operating margin up
30bps 60bps
183.4p
Statutory diluted EP
2.8% 9.2%
S up
111.7p
Dividend per share u
5.6%
p
Negative
Working capital
£378m
Adjusted free cash fl
(2.0%)
ow down
20.5%
Return on Invested Capital up
250bps 250bps
• Actual rates
• Constant rates
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Financial review Continued
Results for the year
Key financials
Adjusted
Revenue
Operating profit
Diluted EPS
Profit after tax
Cash flow from operations
Statutory
Revenue
Operating profit
Diluted EPS
Profit after tax
Cash flow from operations
Dividend per share
Dividends paid in the year
Dividend
Reflecting the Group’s strong cash generation in 2023, the Board recommends
a full year dividend of 111.7p per share, a year-on-year increase of 5.6%.
The full year dividend of 111.7p represents a total cost of £181.2m, or 50%
of adjusted profit attributable to shareholders of the Group for 2023 (2022:
£170.6m and 50%). The dividend is covered 2.0 times by earnings (2022: 2.0 times),
based on adjusted diluted earnings per share divided by dividend per share.
Consolidated income statement commentary
Total reported Group revenue increased by 4.3%, with 0.9% growth
contributed by acquisitions, a like-for-like ('LFL') revenue increase of
6.2% and a decrease of 280bps from foreign exchange, reflecting
sterling appreciation against most of the Group's trading currencies.
The Group’s LFL revenue at constant rates consisted of an increase
of 1.3% in Consumer Products, 9.0% in Corporate Assurance, 7.0% in
Health and Safety, 7.9% in Industry and Infrastructure, and 8.7% in
World of Energy.
We delivered an adjusted operating profit performance of £551.1m
(2022: £520.1m), up 10.9% at constant rates and 6.0% at actual rates.
The Group's adjusted operating margin was 16.6% (2022: 16.3%),
an increase of 60bps from the prior year at constant exchange rates
and 30bps at actual rates.
The Group’s statutory operating profit after Separately Disclosed Items
('SDIs') for the period was £486.2m (2022: £452.4m), up 13.0% at
constant rates. The statutory margin was 14.6% (2022: 14.2%). The
Group’s statutory profit for the year after tax was £318.1m (2022:
£306.8m).
Net financing costs
Adjusted net financing costs were £43.9m, an increase of £12.0m on
2022 resulting from a combination of higher interest expense and the
impact of foreign exchange rates. This comprised £3.8m (2022: £2.2m) of
finance income and £47.7m (2022: £34.1m) of finance expense. Statutory
net financing costs of £63.9m (2022: £32.6m) included £20.0m of costs
(2022: £0.7m) relating to SDIs, predominantly driven by changes in the
fair value of contingent consideration related to acquisitions.
Tax
The adjusted effective tax rate was 24.6%, a decrease of 1.7% on the
prior year (2022: 26.3%). The tax charge, including the impact of SDIs, of
£104.2m (2022: £113.0m), equates to an effective rate of 24.7% (2022:
26.9%), the decrease mainly driven by the geographical mix of profits.
The cash tax on adjusted profit before tax was 23.5% (2022: 21.9%).
Earnings per share
Adjusted diluted earnings per share ('EPS') at actual exchange rates
was 5.6% higher at 223.0p (2022: 211.1p). Diluted EPS after SDIs
was 183.4p (2022: 178.4p) per share and basic EPS after SDIs was
184.4p (2022: 179.2p).
31
2023
£m
2022
£m
3,328.7
3,192.9
551.1
520.1
223.0p
211.1p
382.4
749.0
359.8
722.0
3,328.7
3,192.9
486.2
452.4
183.4p
178.4p
318.1
725.9
306.8
704.1
111.7p
105.8p
176.3
170.6
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Financial review Continued
Five-year performance – adjusted diluted EPS1 (pence)
+2 .4% CAGR3
Dividend per share2 (pence)
+2 .4% CAGR3
2023
2022
2021
2020
2019
2018
223.0
2023
211.1
2022
190.8
2021
170.9
2020
212.5
2019
198.3
2018
Acquisitions and investment
One of the key corporate goals of the Group’s strategy is
delivering an accretive, disciplined capital allocation policy.
As a result, the Group invests both organically and by acquiring
or investing in complementary businesses to strengthen our
portfolio in the locations demanded by clients. This approach
enables the Group to focus on those existing business lines or
countries with good growth and margin prospects where we have
market-leading positions or to enter exciting new growth areas
offering the latest technologies and Quality Assurance services.
Acquisitions
The Group completed two acquisitions in the year (2022:
one) with cash consideration paid of £40.5m (2022: £65.9m),
net of cash acquired of £3.1m (2022: £13.4m), and a
further contingent consideration payable of £3.7m.
111.7
105.8
105.8
105.8
105.8
99.1
1. Presentation of results: To provide readers with a clear and consistent presentation of the underlying operating performance of the Group’s business, some figures discussed in this review are presented as
adjusted, before SDIs (see note 3 to the financial statements in Book three, page 11). A reconciliation between adjusted and statutory performance measures is set out on the overleaf. Figures before
1 January 2019 (when IFRS 16 was adopted) are on an IAS 17 basis.
2. Dividend per share for 2023 is based on the interim dividend paid of 37.7p (2022: 34.2p) plus the proposed final dividend of 74.0p (2022: 71.6p).
3. CAGR represents the compound annual growth rate from 2018 to 2023.
In March 2023, the Group acquired Controle Analítico Análises
Técnicas Ltda ('Controle Analítico'), a leading provider of environmental
analysis, with a focus on water testing, based in Brazil.
The underlying performance of the business, by division, is shown in the table below:
Revenue
Adjusted operating profit
Change at
2023
actual rates
%
Change at
constant
rates
%
(2.9)
6.1
7.9
5.7
10.1
4.3
1.3
9.5
9.1
7.9
11.7
7.1
2023
£m
935.8
477.5
326.3
860.5
728.6
3,328.7
Notes
2
2
2
2
2
14
6
7
Change at
2023
actual rates
%
Change at
constant
rates
%
(8.1)
(2.6)
14.6
6.1
19.7
50.8
6.0
3.9
6.3
5.6
19.2
9.4
22.0
57.3
10.9
9.2
11.7
11.0
2023
£m
246.8
109.4
43.2
86.1
65.6
551.1
(43.9)
507.2
(124.8)
382.4
223.0p
Consumer Products
Corporate Assurance
Health and Safety
Industry and Infrastructure
World of Energy
Group total
Net financing costs
Adjusted profit before income tax
Adjusted income tax expense
Adjusted profit for the year
Adjusted diluted EPS (pence)
32
In August 2023, the Group acquired PlayerLync Holdings, Inc.
('PlayerLync'), a leading SaaS-based platform, based in the USA.
In 2023, £2.7m (2022: £nil) was spent in relation to
consideration for prior year acquisitions.
Organic investment
The Group invested £116.9m (2022: £116.5m) organically
in laboratory expansions, new technologies (including
software) and equipment and other facilities. This
investment represented 3.5% of revenue (2022: 3.6%).
Pensions
The Group’s pension moved to a net surplus of £17.0m (2022: £19.1m
surplus) driven by periodic updates to our actuarial assumptions.
Separately Disclosed Items (‘SDIs’)
A number of items are separately disclosed in the financial
statements as exclusion of these items provides readers with a
clear and consistent presentation of the underlying operating
performance of the Group’s business. Reconciliations of the
statutory to adjusted measures are given overleaf.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Financial review Continued
2023 reconciliation of statutory
to adjusted performance measures
£m
Revenue
Operating profit
Operating margin (%)
Net financing costs
Income tax expense
Profit for the year
Cash flow from operations
Basic EPS (pence)
Diluted EPS (pence)
Statutory
SDIs
Adjusted
3,328.7
–
3,328.7
486.2
14.6%
(63.9)
64.9
2.0%
20.0
551.1
16.6%
(43.9)
(104.2)
(20.6)
(124.8)
318.1
725.9
184.4p
183.4p
64.3
23.1
382.4
749.0
39.8p
224.2p
39.6p
223.0p
2022 reconciliation of statutory
to adjusted performance measures
Statutory
SDIs
Adjusted
3,192.9
–
3,192.9
Key performance indicators
The Group uses a variety of key performance indicators (‘KPIs’) to
monitor the financial performance of the Group and its operating
divisions. The specific metrics and associated definitions are disclosed
on pages 26 and 27.
LFL revenue at constant currency is presented to show the Group’s
revenue excluding the effects of the change in the scope of the
consolidation (acquisitions following their 12-month anniversary of
ownership, and removes the historical contribution of any business
disposals/closures) and removing the impact of currency translation
from the Group’s growth figures.
Like-for-like revenue at
constant currency
2023
£m
2022
£m
Change
%
Reported revenue
3,328.7
3,192.9
4.3
less: Acquisitions/disposals
revenue
(27.8)
–
LFL revenue
3,300.9
3,192.9
3.4
£m
Revenue
Operating profit
Operating margin (%)
Net financing costs
Income tax expense
Profit for the year
Cash flow from operations
Basic EPS (pence)
Diluted EPS (pence)
452.4
14.2%
(32.6)
(113.0)
306.8
704.1
179.2p
178.4p
67.7
2.1%
0.7
520.1
16.3%
(31.9)
Impact of foreign exchange
movements
LFL revenue at constant
currency
–
(83.9)
3,300.9
3,109.0
6.2
(15.4)
(128.4)
53.0
17.9
32.8p
32.7p
359.8
722.0
212.0p
211.1p
The rate of Return On Invested Capital (‘ROIC’), defined as adjusted
operating profit less adjusted taxes divided by invested capital,
measures the efficiency of Group investments. This is a key measure to
assess the efficiency of investment decisions and is also an important
criterion in the decision-making process.
ROIC in 2023 of 20.5% compares to 18.0% in the prior year at constant
exchange rates (2022: 18.0% at actual exchange rates).
When applicable, these SDIs include amortisation of acquisition
intangibles; impairment of goodwill and other assets; the profit or loss
on disposals of businesses or other significant fixed assets; costs related
to acquisition activity; the cost of any fundamental restructuring;
the costs of any significant strategic projects; material claims and
settlements; and unrealised market or fair value gains or losses on
financial assets or liabilities, including contingent consideration.
Adjusted operating profit excludes the amortisation of acquired
intangible assets, primarily customer relationships, as we do not
believe that the amortisation charge in the income statement provides
useful information about the cash costs of running our business as
these assets will be supported and maintained by ongoing marketing
and promotional expenditure, which is already reflected in operating
costs. Amortisation of software, however, is included in adjusted
operating profit as it is similar in nature to other capital expenditure.
The costs associated with our cost reduction programme are
excluded from adjusted operating profit where they represent
changes associated with operational streamlining, technology
upgrades and related asset write-offs and are costs that are
not expected to reoccur. The restructuring programme, which
began in 2022, is expected to last up to five years. The treatment
as SDI is consistent with the disclosure of costs for similar
restructuring and strategic programmes previously undertaken.
The impairment of goodwill and other assets that by their nature
or size are not expected to recur, the profit and loss on disposals
of businesses or other significant assets, and the costs associated
with successful, active or aborted acquisitions are excluded from
adjusted operating profit in order to provide useful information
regarding the underlying performance of the Group’s operations.
The SDIs charge for 2023 comprises amortisation of acquisition
intangibles of £34.2m (2022: £34.8m); acquisition and integration
costs relating to successful, active or aborted acquisitions of £8.3m
(2022: £5.5m); and restructuring costs of £22.4m (2022: £27.4m).
Further information on SDIs is given in note 3 to the
financial statements in Book three, page 11.
33
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Financial review Continued
Free cash flow reconciliation
Cash flow from operations
less: Net capital expenditure
add back: Interest received
less: Interest paid
less: Income tax paid
less: Lease liabilities paid
Free cash flow
add back: SDI cash outflow
Adjusted free cash flow
2023
£m
725.9
2022
£m
704.1
(105.4)
(112.3)
3.5
(71.9)
2.2
( 37.5 )
(119.0)
(106.7)
(77.8)
(81.4)
355.3
23.1
378.4
368.4
17.9
386.3
Net debt
The Group ended the period in a strong financial position. Financial
net debt was £610.6m, a decrease of £127.3m on 31 December 2022.
The undrawn headroom on the Group’s existing committed borrowing
facilities at 31 December 2023 was £664.3m (2022: £707.3m) and
cash and cash equivalents were £298.6m (2022: £320.7m),
representing significant total liquidity.
Total net debt, including the impact of the IFRS 16 lease liability, was
£918.4m (2022: £1,060.1m).
The Group has a well-balanced loan portfolio to enable the funding of
future growth opportunities with a maturity profile as shown overleaf.
Working capital
During 2023, we have continued our working capital focus and, through
disciplined performance management, we have increased our negative
working capital position to negative £78.8m (2022: negative £47.8m).
Working capital has moved to (2.4%) of revenue, reflecting 90bps
improvement compared to 2022.
Five year trend – working capital1 as % of revenue
(630bps)
2023
2022
2021
2020
2019
2018
(2.4)
(1.5)
(1.6)
(0.1)
3.4
3.9
1. Working capital is defined under the consolidated statement of financial position within the
financial statements in Book three, page 3.
2. Figures before 1 January 2019 (when IFRS 16 was adopted) are on an IAS 17 basis.
Adjusted free cash flow (£m)
0.3% CAGR1
2023
2022
2021
2020
2019
2018
378.4
386.3
401.8
435.6
395.3
372.6
1. CAGR represents the compound annual growth rate from 2018 to 2023.
Return On Invested Capital
at constant currency
Adjusted operating profit
2023
£m
551.1
2022
£m
497.0
less: Adjusted tax1
(135.6)
(130.7)
Adjusted profit after tax
415.5
366.3
Invested capital2
2,023.1
2,032.5
Change
%
10.9
3.7
13.4
(0.5)
ROIC %
20.5%
18.0%
250bps
1. Calculated by applying the adjusted effective tax rate (2023: 24.6%, 2022: 26.3%) to adjusted
operating profit.
2. Net assets excluding tax balances, net financial debt and net pension liabilities.
Cash flow and net debt
Cash flow
The Group relies on a combination of debt and internal cash resources
to fund its investment plans. One of the key metrics for measuring the
ability of the business to generate cash is cash flow from operations.
Due to the cash payments associated with the SDIs, and to provide a
complete picture of the underlying performance of the Group, adjusted
cash flow from operations is shown below to illustrate the cash
generated by the Group:
Cash conversion
Cash flow from operations
add back: Cash flow relating
to SDIs
Adjusted cash flow
from operations
add back: Special
contributions to pension
schemes
2023
£m
725.9
2022
£m
704.1
Change
%
3.1
23.1
17.9
749.0
722.0
3.7
Repayment of lease liability
(77.8)
Cash flow for cash conversion
671.2
–
2.0
(81.4)
642.6
–
(4.4)
4.5
Cash conversion %
121.8%
123.6%
(180bps)
34
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Borrowings by maturity profile
(At 31 December 2023)
1
2
1.
Less than one year 11%
2.
One to five years
3.
Over five years
61%
28%
3
Under existing facilities, the Group has available debt headroom
of £664.3m at 31 December 2023 (2022: £707.3m). The components
of net debt at 31 December 2023 are outlined below:
1 January
2023
£m
320.7
Cash1
Borrowings2
(1,058.6)
Cash and
non-cash
movements
£m
Exchange
adjustments
£m
31 December
2023
£m
13.7
87.5
(35.8)
298.6
61.9
(909.2)
Financial review Continued
To ensure the Group is not exposed to income statement volatility in
relation to foreign currency translation on its debt, the Group ensures
that any foreign currency borrowings are matched to the value of its
overseas assets in that currency (an ‘effective’ hedge).
The Group borrows primarily in US dollars, and any currency translation
exposures on the borrowings are offset by the currency translation on
the US dollar and US dollar-related overseas assets of the Group.
The composition of the Group’s gross borrowings in 2023, analysed by
currency, is as follows:
Borrowings by currency
(At 31 December 2023)
1
2
1.
EUR
2.
USD
18%
82%
Value of £1
US dollar
Euro
Chinese
renminbi
Hong Kong
dollar
Australian
dollar
Statement of
financial position rates
Income statement
rates
2023
1.28
1.15
2022
1.20
1.13
2023
1.24
1.15
2022
1.24
1.17
9.14
8.45
8.81
8.31
10.0
9.37
9.71
9.68
1.87
1.78
1.87
1.78
Significant accounting policies
The consolidated financial statements in Book three are prepared in
accordance with IFRS as adopted by the UK. Details of the Group’s
significant accounting policies are shown in note 1 to the financial
statements in Book three, page 7.
Colm Deasy
Chief Financial Officer
Financial
net debt
(737.9)
101.2
Lease liabilities2
(322.2)
(0.5)
Net debt
(1,060.1)
100.7
26.1
14.9
41.0
(610.6)
(307.8)
(918.4)
Foreign currency movements
The Group transacts in over 80 currencies across more than 100
countries, and revenue and profit are impacted by currency fluctuations.
However, the diversification of the Group’s revenue base provides a
partial dilution to this exposure.
1. As disclosed in note 14 of the financial statements in Book three, page 27.
2. Borrowings include £1.6m of non-cash movements related to amortisation of facility fees (see
note 14 of the financial statements in Book three, page 27). Lease liabilities include £78.3m of
non-cash movements.
At constant rates, revenue grew 7.1% (actual rates 4.3%) and adjusted
operating profit grew 10.9% (actual rates 6.0%).
The exchange rates used to translate the statement of financial
position and the income statement into the Group’s functional currency,
sterling, for the five most material currencies used in the Group are
shown as follows:
35
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review
Operating review
Consumer Products
Low-single digit LFL revenue growth
products, materials and technologies,
as well as the import of goods in their
markets, based on acceptable quality
and safety standards. Ultimately, we
assist them in getting their products to
market quickly and safely, to continually
meet evolving consumer demands.
2023 performance
In 2023, our Consumer Products-
related business reported revenue of
£935.8m, up year-on-year by 1.3% at
constant rates but down 2.9% at actual
rates. We delivered operating profit
of £246.8m, 2.6% lower year-on-year
at constant currency and down 8.1%
year-on-year at actual rates. Margin
was 26.4%, down 100bps year-on-year
at constant currency, the decrease
attributable to the revenue decline
in GTS, and the low-single digit LFL
performance in Softlines and Hardlines.
Intertek value proposition
Our Consumer Products division focuses
on the ATIC solutions we offer to our
clients to develop and sell better, safer,
and more sustainable products to their
own clients. This division was 28% of
our revenue in 2023 and includes the
following business lines: Softlines,
Hardlines, Electrical & Connected World
and Government & Trade Services.
As a trusted partner to the world’s
leading retailers, manufacturers
and distributors, the division
supports a wide range of industries
including textiles, footwear,
toys, hardlines, home appliances,
consumer electronics, information
and communication technology,
automotive, aerospace, lighting, building
products, industrial and renewable
energy products, and healthcare.
Strategy
Our TQA value proposition provides a
systemic approach to support the Quality
Assurance efforts of our Consumer
Products-related customers in each
of the areas of their operations. To do
this we leverage our global network of
accredited facilities and world leading
technical experts to help our clients
meet high quality safety, regulatory
and brand standards, develop new
Business lines
Softlines
Electrical & Connected World
Providing a range of solutions for
textiles, garments, footwear and
personal protective equipment.
Our role: Our solutions enable fashion
retailers, brands and manufacturers to
gatekeep regulatory compliance, while
continuously improving their product
performance in terms of quality, safety
and sustainability.
Hardlines
Comprehensive solutions for a wide
variety of toys and hardgoods.
Our role: Solutions for toys, children’s
and juvenile products, household products,
furniture, and office supplies. We help our
customers meet regulatory and retailer-
specific requirements, improve product
performance and differentiation through
benchmarking, and facilitate global
market access.
Helping clients meet safety,
performance, environmental and
quality requirements and delivering
best in class networking and cyber
security solutions for today’s
wireless and connected devices.
Our role: We bring more than 100 years of
product testing and certification expertise to
a wide range of industries, such as Medical,
Lighting, Energy, Appliances & Electronics,
Industrial Equipment, and IT & Telecom
Equipment. We also provide comprehensive
hardware, software, and cyber security
solutions to help clients rapidly launch secure
and reliable products in each industry and
sector around the world.
Government & Trade Services
Providing conformity assessment
services to governments, regulatory
bodies, exporters and importers to
support trade compliance.
Our role: We support governments, customs
authorities, exporters and importers by
ensuring imported goods comply with
international safety and quality standards.
Our worldwide network of offices delivers
rapid inspection and certification.
Revenue
Adjusted operating profit
£935.8m
£24 6.8m
Adjusted operating margin
26.4%
Percentage of Group revenue
28%
36
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report • Our GTS business provides certification
services to governments in the
Middle East and Africa to facilitate
the import of goods in their markets,
based on acceptable quality and
safety standards. We saw double-
digit negative LFL revenue growth
globally as the expansion in the
supply chain activities of our clients
in the Middle East and Africa was
offset by the impact of the non-
renewal of two contracts in 2022.
• Our Softlines business delivered
low-single digit LFL revenue
growth benefitting from growth
in e-commerce, growth in
Risk-based Quality Assurance
and increased investments in
end-to-end sustainability.
• Hardlines reported stable LFL revenue
benefitting from the growth in
e-commerce, the increased consumer
demand for home furniture and
toys as well as the investments
of our clients in sustainability.
• With increased ATIC activities driven
by greater regulatory standards in
energy efficiency, higher demand for
medical devices and 5G investments,
our Electrical & Connected World
business delivered mid-single
digit LFL revenue growth.
Operating review Continued
2024 growth outlook
In 2024, we expect our Consumer
Products division to deliver low- to
mid-single digit LFL revenue growth
at constant currency.
Mid- to long-term
growth outlook
Our Consumer Products division will
benefit from growth in new brands,
SKUs & e-commerce, increased
regulation, a greater focus on
sustainability, technology, as well as a
growing middle class. We expect low-
to mid-single LFL revenue growth in
the medium term at constant currency.
Financial highlights 2023
Revenue
Like-for-like revenue
Adjusted operating profit
2023
£m
935.8
935.8
246.8
2022
£m
964.2
964.2
268.5
Change at
actual
rates
Change at
constant
rates
(2.9%)
(2.9%)
(8.1%)
1.3%
1.3%
(2.6%)
Adjusted operating margin
26.4%
27.8%
(140bps)
(100bps)
37
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
Inview – Advanced remote auditing
and inspection services
What it is: Inview is our state-
of-the-art remote audit and inspection
solution, enabling our experts to
conduct thorough inspections or
audit via live video. The tool also has
augmented reality features, optical
character recognition data capture
features and several other features to
facilitate inspection. This innovative
approach utilises handheld mobile
devices and glass-based devices,
allowing our team to adhere to the
same stringent quality procedures as
traditional on-site inspections. It is
particularly effective for pre-shipment
and commercial inspections of goods.
Customer benefit: This modern
solution offers more comprehensive
insights into both the inspection process
and its results. Recently upgraded,
Inview now gathers even more detailed
information from each audit and
inspection. This enhanced data
collection not only benefits
companies by providing deeper
insights but also contributes to
reducing their carbon footprint.
intertek.com/inview/
38
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
Global Market
Access – 24/7 access
to curated and
up-to-date compliance
information
What it is: Global Market Access is a
one-stop digital knowledge portal,
developed to increase regulatory
compliance for improved consumer
safety and to protect corporate
reputations. Covering more than 180
consumer product types for 40
different markets – from soft goods
such as apparel and textiles, to hard
goods such as cookware and furniture
– it helps retailers and manufacturers
comply with the regulations in force in
different markets across the world.
Customer benefit: This self-help
portal enables compliance and quality
managers to obtain up-to-date
regulatory, testing and recall
information tailored to their needs –
all in one place, with just a few clicks,
instantly. Currently, we offer four
e-services on the portal, including
Regulatory Sheet, Test Plan, Recall
Summary and Gap Analysis, all helping
our customers bring their products to
global markets more quickly.
intertek.com/
electrical/global-market-access/
Intertek in Action
Hydrogen Assurance –
Expert advisory and
assurance solutions for
hydrogen-based projects
What it is: Our Hydrogen Assurance
platform provides quality, safety and
sustainability assurance across the entire
hydrogen value chain, from the early
stages of project feasibility and product
design, through hydrogen production,
delivery and storage, to end-use product
compliance and certification. This
includes comprehensive testing and
certification of hydrogen refuelling
stations and dispensing and compression
systems.
Customer benefit: The platform
gives our customers access to leading
hydrogen expertise and engineering
resources. Its design services help bring
products to market, while electrolyser
bankability services ensure projects
are financially viable and sustainable.
Combining these with guidance on
regulatory and compliance requirements,
Hydrogen Assurance supports the safe
and successful development and
execution of hydrogen-based projects.
intertek.com/hydrogen/
39
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Operating review Continued
Corporate Assurance
High-single digit LFL revenue growth
Revenue
£477.5m
Adjusted operating profit
£109.4m
Adjusted operating margin
22.9%
Percentage of Group revenue
14%
Intertek value proposition
Our Corporate Assurance division focuses
on the industry agnostic Assurance
solutions we offer to our clients to make
their value chains more sustainable and
more resilient end-to-end. This division
was 14% of our revenue in 2023 and
includes Business Assurance and Assuris.
Strategy
Business Assurance and Assuris are
central to our ATIC offering and are some
of the most exciting businesses within
Intertek, given the increased focus on
operational risk management within the
value chain of every company. Intertek
Business Assurance provides a full range
of business process audit and support
services, including accredited third-
party management systems auditing
and certification, second-party supplier
auditing and supply chain solutions,
sustainability data verification, process
performance analysis and training.
Assuris’ global network of experts
provides a global network of scientists,
engineers, and regulatory specialists to
provide support to navigate complex
scientific, regulatory, environmental,
health, safety, and quality challenges
throughout the value chain of our clients.
2023 performance
In 2023, our Corporate Assurance-related
business delivered revenue of £477.5m,
up year-on-year by 9.5% at constant
currency and 6.1% at actual rates. LFL
revenue growth was 9.0% at constant
currency. Operating profit was £109.4m,
up 19.2% year-on-year at constant
currency and up 14.6% at actual rates
with a margin of 22.9%, 190bps higher
year-on-year at constant currency,
as we benefitted from operating
leverage and productivity gains.
Business lines
Business Assurance
Providing a full range of business
process audit and support
solutions.
Our role: We enable our clients to improve
their operations, meet regulatory
requirements, mitigate business risks, reduce
their environmental impact, qualify their
suppliers, and help them achieve their
business objectives.
Intertek Assuris
Helping clients reduce risk, access
global markets, promote health
and safety, and protect the
environment.
Our role: Intertek Assuris provides global
regulatory support and scientific
substantiation to enable market access,
implements quality management systems,
assesses essential safety concerns and
provides clients with a pathway to
decarbonisation.
40
Intertek Group plc
Annual Report & Accounts 2023
Book one: Strategic Report
Book two: Sustainability Report
Book three: Financial Report
• Business Assurance delivered
double-digit LFL revenue growth as the
business saw increased investments by
our clients to improve the resilience of
their supply chains, the continuous
focus on ethical supply and the
increased need for sustainability
assurance.
• The Assuris business delivered stable
LFL revenue as we benefitted from
improved demand for our regulatory
assurance solutions and from increased
corporate investments in ESG.
2024 growth outlook
In 2024, we expect our Corporate
Assurance division to deliver high-
single digit LFL revenue growth at
constant currency.
Mid- to long-term
growth outlook
Our Corporate Assurance division will
benefit from a greater corporate focus
on sustainability, the need for
increased supply chain resilience,
enterprise cyber security, People
Assurance services and regulatory
assurance. We expect high-single to
double digit LFL revenue growth in the
medium term at constant currency.
Financial highlights 2023
Revenue
Like-for-like revenue
Adjusted operating profit
2023
£m
477.5
475.5
109.4
2022
£m
450.0
450.0
95.5
Change at
actual
rates
Change at
constant
rates
6.1%
5.7%
9.5%
9.0%
14.6%
19.2%
Adjusted operating margin
22.9%
21.2%
170bps
190bps
41
Operating review Continued
Intertek in Action
Intertek Inlight –
Enhancing supply chain
risk management and
brand protection
What it is: Intertek Inlight is a
comprehensive platform designed to
help organisations gain a deeper
understanding of their supply chain
risks and sustainability. Leveraging
Intertek's status as having the largest
network of compliance auditors
worldwide, Inlight offers a customisable
assurance platform. It utilises data
from over 100,000 annual audits and
integrates Intertek's real-time risk
analysis capabilities.
intertek.com/inlight/
Customer benefit: The platform
provides reliable information about
suppliers' capabilities and compliance
levels, coupled with tools for the early
detection of potential risks. This
functionality enables companies to
develop a clear visibility and transparency
of their supply chains, create detailed risk
profiles for their suppliers, and make more
informed decisions.
Inlight is an invaluable tool for
businesses aiming to protect their brand
integrity, ensuring that they are working
with compliant and sustainable suppliers.
By offering insights into supply chain
dynamics, Inlight empowers companies
to navigate complex global supply
networks with confidence and foresight.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
PlayerLync – Enhancing our
People Assurance offering
What it is: PlayerLync is a leading SaaS-based
platform which combines mobile content
management, operational and compliance support
in a single native app. In 2023, the platform
became part of Intertek’s People Assurance
business, building on our earlier pioneering
acquisition of Alchemy/Wisetail by adding robust
mobile content management, communication
and offline synchronisation capabilities.
®
Customer benefit: With approximately 80%
of the global workforce operating in deskless
roles today, the demand for bespoke People
Assurance solutions and mobile-based learning
delivered at the point of need continues to grow,
driven by increasing regulation and heightened
end-customer expectations. Software-
based technology solutions that offer mobile
training, learning and development content are
therefore becoming ever more important, and
the combination of Wisetail and PlayerLync is
exceptionally well-placed to meet those needs.
Intertek in Action
Green R&D – Balancing
sustainability, safety
and quality
What it is: Green R&D is a
science-driven solution that
offers comprehensive insights into
product development, focusing on
safety, quality and sustainability. It
encompasses detailed performance
testing, analysis, regulatory
compliance and environmental
assessments, providing a holistic
view of a product's journey.
intertek.com/assuris/sustainability/
green-product-development-assurance/
Customer benefit: The key benefit
for customers lies in the growing
demand for eco-friendly products.
Today's consumers are increasingly
conscious about the environmental
impact of their purchases.
Green R&D services enable companies
to respond to this shift by ensuring
their products are developed with
minimal environmental impact. This
approach helps companies mitigate
risks and protect their brand reputation
by achieving an optimal balance
between product quality, safety
and performance, while adhering to
environmental standards. It offers a
strategic advantage in a marketplace
where ecological considerations are
becoming increasingly pivotal.
42
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Health and Safety
High-single digit LFL revenue growth
2023 performance
In 2023, our Health and Safety-related
business reported revenue of £326.3m,
up year-on-year by 9.1% at constant
currency and by 7.9% at actual rates. LFL
revenue growth was 7.0% at constant
currency. Operating profit of £43.2m
was up 9.4% year-on-year at constant
currency and 6.1% at actual rates. Due
to country-mix effect in AgriWorld and
investments in capability in Chemicals
& Pharma, margin of 13.2% was flat
year-on-year at constant currency.
Revenue
£326.3m
Adjusted operating p
rofit
£43.2m
Adjusted operating margin
13.2%
Percentage of Group revenue
10%
Intertek value proposition
Our Health and Safety division focuses
on the ATIC solutions we offer to our
clients to make sure we all enjoy a
healthier and safer life. This division
was 10% of our revenue in 2023 and
includes our AgriWorld, Food, and
Chemicals & Pharma business lines.
Strategy
Our TQA value proposition provides our
Health and Safety-related customers
with a systemic, end-to-end ATIC
offering at every stage of the supply
chain. In an industry with significant
structural growth drivers, our science-
based approach supports clients as
the sustained demand for food safety
testing activities increases along with
higher demand for hygiene and safety
audits in factories. Our longstanding
experience and expertise in the
Chemicals & Pharma industries enables
clients to mitigate risks associated with
product quality and safety and processes,
supporting them with their product
development, regulatory authorisation,
chemical testing and production.
Business lines
AgriWorld
Chemicals & Pharma
Enabling clients' product
development, regulatory
authorisation and production.
Our role: Our analytical and assurance
solutions accelerate product development
and mitigate risks associated with product
quality and safety, processes, and supply
chains for the pharmaceutical, chemical,
polymer, packaging, medical device, and
cosmetic sectors.
Providing assurance, testing,
inspection and certification
services across the entire
agricultural supply chain.
Our role: We offer an extensive array of
services including inspection services,
monitoring the quality and quantity of cargo
from source to destination; and high-quality
analysis for the Agri-biotech and breeding
industries and assurance services supporting
sustainable farming practices. Our global
experts offer seamless support, and provide
traceability throughout the entire supply chain.
Food
Providing testing, inspection,
auditing, certification and advisory
services to food companies.
Our role: We help major global brands to
launch new food products, support food
health initiatives, ensure safety and quality
across the supply chain, help reduce
food-borne diseases, and enable developing
nations to increase their global food exports.
43
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
• AgriWorld provides inspection activities
to ensure that the global food supply
chain operates fully and safely. The
business reported mid-single digit LFL
revenue growth. We continue to see an
increase in demand for inspection
activities driven by sustained growth in
the global food industry.
• Our Food business registered
high-single digit LFL revenue growth
globally resulting from increased
demand for food safety testing
activities and hygiene and safety
audits in factories.
• In Chemicals & Pharma we saw
high-single digit LFL revenue growth
globally reflecting improved demand for
regulatory assurance and chemical
testing and from the increased R&D
investments of the pharma industry.
2024 growth outlook
In 2024, we expect our Health and
Safety division to deliver mid-single
digit LFL revenue growth.
Mid- to long-term
growth outlook
Our Health and Safety division will
benefit from the demand for healthier
and more sustainable food to support
a growing global population, increased
regulation, and new R&D investments
in the pharma industry. We expect
mid- to high-single digit LFL revenue
growth in the medium term at
constant currency.
Intertek and World Coffee Research –
Enhancing Arabica coffee research
through collaborative partnership
What it is: Our AgriTech team is collaborating
with World Coffee Research ('WCR'), a leading
non-profit organisation focused on improving the
future of the coffee industry. We are contributing
to WCR's innovative open-access database, which
contains crucial genetic information on Arabica
coffee. Our role involves providing specialised
training in sampling techniques, performing DNA
extraction, offering genotyping services and
delivering comprehensive technical support.
Customer benefit: This collaboration offers
significant benefits to the coffee community,
including researchers, farmers and industry
professionals. The availability of a centralised and
accessible genetic database is set to transform
the field of coffee research. It simplifies the
process of identifying and authenticating coffee
varieties, leading to substantial cost reductions.
Our partnership with WCR not only aids in
advancing agricultural technology but also
helps in lowering quality control expenses,
thereby contributing to the cultivation of
higher-quality coffee plants. This initiative
represents a major step forward in ensuring the
sustainability and quality of the coffee industry.
Financial highlights 2023
Revenue
Like-for-like revenue
Adjusted operating profit
2023
£m
326.3
319.9
43.2
2022
£m
302.3
302.3
40.7
Change at
actual
rates
Change at
constant
rates
7.9%
5.8%
6.1%
9.1%
7.0%
9.4%
–
Adjusted operating margin
13.2%
13.5%
(30bps)
44
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
Controle Analítico –
Intertek enhances
presence in attractive
environmental testing
market
What it is: Controle Analítico is a
leading provider of environmental
analysis, with a focus on drinking
and waste water, soil, and waste
testing, based in Brazil. With
heightened societal awareness
around environmental health and
sustainability, and population growth
placing greater demand on critical
infrastructure, broadening access to
sanitation and clean water services
has become increasingly important
for stakeholders around the world.
Customer benefit: In Brazil,
legislation aimed at providing at
least 99% of the population with
safe drinking water and 90% of all
in-country households with sanitation
services by the year 2033 is expected
to require approximately US$128
billion of investment this decade. The
acquisition of Controle Analítico in April
2023 complemented Intertek’s leading
Food and Agri Total Quality Assurance
solutions in Brazil, expanding our
presence and providing a wider and
much-needed service offering in the
Environmental testing market.
Intertek in Action
Crystek –
Innovating to predict
and prevent honey
crystallisation
What it is: Crystek, developed by
Intertek, provides services to evaluate
and estimate a honey sample’s
tendency to crystallise, as well as to
advise on and improve the quality
of the honey and its production.
Customer benefit: Honey
crystallisation is a natural phenomenon
where honey turns from liquid to a
semi-solid state. The start of this
natural process depends on the honey’s
characteristics and the production
process. Intertek has developed a
physical instrument that can be used to
understand which part – characteristics
or production – has the biggest impact
on crystallisation, with experts available
to support on-site or remotely.
Intertek is one of the world-leading
experts in the analysis of honey and
hive products. The combination of
Crystek and our unique expertise
allows us to help manufacturers
develop the best process to prevent
crystallisation from taking place.
intertek.com/food/crystek/
45
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Industry and Infrastructure
High-single digit LFL revenue growth
Revenue
£860.5m
£86.1m
Adjusted operating profit
Adjusted operating margin
10.0%
Percentage of Group revenue
26%
Intertek value proposition
Our Industry and Infrastructure division
focuses on the ATIC solutions our
clients need to develop and build better,
safer and greener infrastructure. This
division was 26% of our revenue in
2023 and includes Industry Services,
Minerals and Building & Construction.
Strategy
Our TQA value proposition helps
our customers to mitigate the risks
associated with technical failure or
delay, ensuring that their projects
proceed on time and meet the highest
quality standards as demand for more
environmentally friendly buildings and
infrastructure grows. By helping to
improve safety conditions and reduce
commercial risk, our broad range
of assurance, testing, inspection,
certification and engineering services
allows us to assist clients in protecting
both the quantity and quality of
their mined and drilled products.
46
2023 performance
In 2023, our Industry and Infrastructure-
related business delivered revenue of
£860.5m, up 7.9% at constant currency
and up 5.7% at actual rates. Operating
profit of £86.1m was up 22.0% year-
on-year at constant currency and up
19.7% year-on-year at actual rates.
Margin improved by 110bps year-on-
year at constant currency to 10.0%
as we benefitted from operating
leverage and productivity gains.
Business lines
Industry Services
Building & Construction
Ensuring the safe and optimised use
of customers’ assets and minimising
quality risks in their supply chains.
Our role: Our Industry Services business line
uses its in-depth knowledge of industries such
as renewable energy, oil and gas, and
petrochemicals to provide customers with a
diverse and technologically advanced range of
TQA solutions. The services we offer include
technical inspection, non-destructive and
materials testing, and asset performance
management.
Providing testing, inspection,
certification and engineering
services to the construction
industry.
Our role: We offer a full suite of product-
related testing and certification capabilities,
plus project-related assurance, testing,
inspection, and consulting services that are
unparalleled in the building and construction
market.
Minerals
Providing a wide range of services
to the mining and minerals
exploration industry.
Our role: Located in key mining locations
across the globe, and operating an extensive
network of mineral laboratories, Intertek
Minerals offers expert inspection, analytical
testing and advisory services to the Minerals,
Exploration, Ore and Mining industries. We
cover each step of the supply chain from
exploration, production, sampling and
inspection, to commercial trade settlement
analysis.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Operating review Continued
Intertek in Action
Intertek in Action
Intertek Aware – Improving the safety,
efficiency and performance of complex
equipment
MiQ – Helping energy
producers minimise
methane emissions
What it is: Developed through
Intertek Industry Services, Intertek
Aware is a Digital Twin offering which
integrates data from IoT sensors,
robotic feedback and powerful
software, fuelled by analytics, to
create an accurate visual replica of
your industrial world. The software
empowers energy asset owners
and operators to improve reliability,
increase safety, estimate remaining
useful life and manage inspection
data, as well as helps to reduce costs.
Customer benefit: Aware harnesses
online and offline data to fuel smarter
decisions on operations, maintenance,
outages and inspections. The software
helps to avoid forced outages,
visualises problem areas and tracks
risk-based inspections, failures and
repairs. It also helps to meet code
compliance requirements with faster,
standardised documentation.
intertek.com/asset-integrity-management/
asset-performance-management-software/
What it is: MiQ is a leading certification
standard for methane emissions. As
an accredited MiQ auditor, Intertek
independently certifies natural gas
extraction and production facilities
(onshore and offshore), using data-led
grading to identify gas with higher or
lower emissions. To provide a grade
for a producer or facility, we evaluate
methane intensity, company practices
and monitoring technology.
Customer benefit: While reducing
greenhouse gas emissions focuses
on CO2, there is increasing awareness
that methane is 80 times more potent
in its first 20 years, so reducing it
can have a much greater immediate
effect on managing climate change. By
providing grades that enable producers
to differentiate their natural gas, MiQ
certification promotes incentives
for cutting methane emissions.
intertek.com/oil-gas/
methane-emissions-verification/
• Industry Services includes our
Capex Inspection services and Opex
Maintenance services and delivered
double-digit LFL revenue growth
as we benefitted from increased
capex investment in traditional Oil
and Gas exploration and production
as well as in renewables.
• The continuing high demand for
testing and inspection activities
drove high-single digit LFL revenue
growth in our Minerals business.
• Growing demand for more
environmentally friendly buildings and
the increased number of infrastructure
projects in North America produced
mid-single digit LFL revenue growth for
our Building & Construction business.
2024 growth outlook
In 2024, we expect our Industry and
Infrastructure division to deliver
high-single digit LFL revenue growth
at constant currency.
Mid- to long-term
growth outlook
The Industry and Infrastructure division
will benefit from increased investment
from energy companies to meet
growing demand and consumption
of energy from the growing global
population, the scaling up of
Renewables, increase R&D investments
that OEMs are making in EV/Hybrid
vehicles and from the development
of greener fuels. We expect mid- to
high-single digit LFL revenue growth in
the medium term at constant currency.
Financial highlights 2023
Revenue
Like-for-like revenue
Adjusted operating profit
Adjusted operating margin
47
2023
£m
860.5
860.5
86.1
10.0%
2022
£m
814.4
814.4
71.9
8.8%
Change at
actual
rates
Change at
constant
rates
5.7%
5.7%
7.9%
7.9%
19.7%
22.0%
120bps
110bps
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
Intertek Moody –
Leveraging a legacy
of engineering-based
excellence
What it is: The Moody legacy is
synonymous with engineering-based
technical assurance. Building on a
more than 100-year history, that
foundational heritage of experience
and expertise was reignited with
the return of the Intertek Moody
brand. Bringing back the brand not
only harnesses its industry-leading
recognition and honours one of
Intertek’s founding pioneers, but
also reinforces the strength and
stability forged by the storied
Moody legacy that still drives our
global expertise, pioneering industry
innovations and local presence.
Customer benefit: As industries
strive to meet growing global energy
and infrastructure demands, the
need for quality, safety and reliability
is paramount. Delivering in-depth
expertise and local knowledge on a
global scale, Intertek Moody has a
history of being where our customers
need us, across the entire supply
chain and all stages of a project’s
life cycle. Our first-class proactive
and valued solutions, such as
inspection, expediting and project
management assistance help reduce
risks, increase quality, optimise
efficiency and improve safety.
intertek.com/moody/
Intertek in Action
PhotonAssay – Enhancing efficiency and
sustainability in West African gold testing
What it is: PhotonAssay is a
revolutionary analytical technique,
heralding a new era of speed, accuracy
and safety in gold analysis. We have
introduced the technology at our minerals
laboratory in Tarkwa, Ghana, which is
central to our decades-long support
for the West African mining industry.
Unlike traditional methods, PhotonAssay
employs high-intensity X-rays to
excite gold atoms, producing unique
gamma-ray signatures, which are then
measured to determine gold content.
Customer benefit: The innovative
technology delivers accurate results
in a fraction of the time taken
by conventional methods. It also
significantly reduces the use of
hazardous chemicals, minimising the
environmental impact of testing
procedures. The PhotonAssay unit's
ability to deliver rapid, accurate and
environmentally conscious results will
assist to improve the sustainability of
our clients' operations and contribute to
the region's overall economic growth.
intertek.com/minerals/photon-assay/
48
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
World of Energy
High-single digit LFL revenue growth
Our partner firm CEA is a market-leading
provider of Quality Assurance, supply-
chain traceability and technical services
to the fast-growing solar energy
sector. Its leading assurance service
offering includes in-line monitoring
that allows clients to oversee the
management and traceability of their
supply chains, offering a comprehensive,
end-to-end service to support
customers on their decarbonisation
and energy sustainability journeys.
2023 performance
In 2023, our World of Energy-related
business delivered revenue of £728.6m,
up year-on-year by 11.7% at constant
currency and 10.1% at actual rates. LFL
revenue growth was 8.7% at constant
currency. Operating profit of £65.6m was
up 57.3% at constant currency and 50.8%
at actual rates with margin improving by
260bps at constant currency to 9.0%, as
we benefitted from operating leverage,
productivity gains and portfolio mix.
Intertek value proposition
Our World of Energy division focuses on
the ATIC solutions we offer to our clients
to develop renewables as well as better
and greener fuels. This division was 22%
of our revenue in 2023 and includes
Caleb Brett, Transportation Technologies
and Clean Energy Associates ('CEA').
Strategy
Our TQA value proposition provides
world-leading expertise to enable our
clients to benefit from the significant
opportunities in the World of Energy.
We do this by providing specialist cargo
inspection, analytical assessment,
calibration and related research and
technical services to the world's
petroleum and biofuels industries.
We provide rapid testing and validation
services to the transportation
industry, leveraging our Transportation
Technologies subject matter
expertise that is recognised by
leading manufacturers worldwide. We
evaluate everything from automobiles
and energy storage to airplanes, and
deliver top-tier testing for emerging
technologies, such as autonomous
and electric/hybrid vehicles.
Business lines
Caleb Brett
Clean Energy Associates ('CEA')
Specialised cargo inspection and
analytical assessment services to
the oil and gas, chemical and other
commodities markets.
Provides quality assurance, supply
chain and technical services to the
fast-growing solar energy, energy
storage and green hydrogen sectors.
Our role: We offer global 24/7/365 services
covering cargo and inventory inspection
services, analytical assessment, calibration
and related research and technical services to
the world’s petroleum and biofuels industries.
Our role: CEA helps maximise the quality,
safety and performance of clients’ operational
assets, manages global solar PV, green
hydrogen and energy storage supply chains,
and provides a complete quality assurance
solution through data, analysis and oversight.
Transportation Technologies
Providing diverse, rapid testing
and validation services to the
transportation industry.
Our role: Our Transportation Technologies
expertise is recognised by leading
manufacturers worldwide. We evaluate
everything from automobiles and energy
storage to airplanes, and deliver top-tier
testing for emerging markets, such as
autonomous and electric/ hybrid vehicles.
Revenue
£728.6m
Adjusted operating profit
£65.6m
Adjusted operating margin
9.0%
Percentage of Group revenue
22%
49
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Operating review Continued
• Caleb Brett, the global leader in the
Crude Oil and Refined products global
trading markets, benefitted from
improved momentum driven by
increased global mobility and higher
testing activities for biofuels with
high-single digit LFL revenue growth.
• Transportation Technologies delivered
mid-single digit LFL revenue growth
globally driven by increased investment
in new powertrains to lower CO2/NOx
emissions and in traditional combustion
engines to improve fuel efficiency.
• Our CEA business delivered double digit
LFL revenue growth, benefitting from
the increased investments in solar
panels which is the fastest growing
form of renewable energy.
2024 growth outlook
In 2024, we expect our World of Energy
division to deliver mid-single digit LFL
revenue growth at constant currency.
Mid- to long-term
growth outlook
The World of Energy division will
benefit from increased investment
from energy companies to meet
growing demand and consumption
of energy from the growing
global population, the scaling up
of renewables, increased R&D
investments that OEMs are making
in EV/Hybrid vehicles and from the
development of greener fuels. We
expect low- to mid-single digit LFL
revenue growth in the medium
term at constant currency.
Intertek in Action
Electrification Centre of Excellence,
Plymouth, Michigan – Supporting the
move towards electric mobility
What it is: Strategically located
near Detroit in the epicentre of the
automotive industry, our Electrification
Centre of Excellence in Plymouth,
Michigan, offers some of the most
extensive testing capabilities in North
America for electric vehicle batteries
and supply equipment. Through
science-based Total Quality Assurance
solutions, this facility plays a crucial
role in supporting manufacturers in
the transition to greener transport.
Customer benefit: With sales of
electric vehicles growing rapidly, our
Electrification Centre of Excellence
helps meet the automotive industry’s
increasing need for regulatory support
and safety and validation testing.
As electrification technologies
continue to advance, the facility will
support the safety, performance and
functionality of electric vehicles,
battery packs, charging systems
and their related components.
Financial highlights 2023
Revenue
Like-for-like revenue
Adjusted operating profit
Adjusted operating margin
50
2023
£m
728.6
709.2
65.6
9.0%
2022
£m
662.0
662.0
43.5
6.6%
Change at
actual
rates
Change at
constant
rates
10.1%
7.1%
50.8%
11.7%
8.7%
57.3%
240bps
260bps
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Operating review Continued
Intertek in Action
Intertek and Zero Petroleum – Pioneering the
future of synthetic, carbon-neutral fuels
What it is: Intertek is collaborating
with Zero Petroleum, an innovative
energy company at the forefront
of developing synthetic, carbon-
neutral alternatives to traditional
fossil fuels. Our role is vital in this
partnership, as we are responsible for
thoroughly assessing the composition
and emissions of these synthetic
fuels and verifying their compliance
with stringent industry standards
and regulatory requirements.
Customer benefit: The overall
benefits of Zero synthetic fuels are
substantial in the context of the
global energy transition. These efuels,
uniquely created from air and water,
offer potentially unlimited scale and
represent a significant advancement
in moving towards cleaner, more
sustainable energy sources. Designed to
directly replace conventional petroleum-
based fuels, they are applicable
across various sectors, including
transportation, aviation and agriculture.
A key advantage of Zero synthetic
fuels is their compatibility with
existing engines, allowing for seamless
integration without the necessity
for any modifications or adaptations.
This compatibility underscores the
potential of Zero synthetic fuels to
significantly contribute to reducing
carbon emissions and advancing
environmental sustainability.
51
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Principal risks and uncertainties
have assessed climate change will
not have a meaningful impact on the
viability of the Group over the five-
year period to 31 December 2028.
The Group has a broad customer base
across its multiple business lines and
in its different geographic regions,
and is supported by a robust balance
sheet and strong operational cash
flows. The Board considers that
the diverse nature of business lines
and geographies in which the Group
operates significantly mitigates the
impact that any of these scenarios
might have on the Group’s viability.
Based on this assessment, the Directors
confirm that they have a reasonable
expectation that the Company will
be able to continue in operation and
meet its liabilities as they fall due over
the period to 31 December 2028. The
statement on going concern is in the
Directors’ report in Book two, on page 73.
Principal risks
The Group is affected by a number of
risk factors, some of which, including
macroeconomic and industry-specific
cyclical risks, are largely outside the
Group’s control. Some risks are particular
to Intertek’s operations. The principal
risks of which the Group is aware
are detailed on the following pages,
including a commentary on how the
Group mitigates these risks. These
risks and uncertainties do not appear
in any particular order of potential
materiality or probability of occurrence.
There may be other risks that are
currently unknown or regarded as
immaterial which could turn out to be
material. Any of these risks could have
the potential to impact the performance
of the Group, its assets, liquidity,
capital resources and its reputation.
Changes to principal risks
Our principal risks continue to evolve
in response to our changing risk
environment. We have removed
Covid-19 as a principal risk for 2023;
this follows the decision by the Word
Health Organisation on 5 May 2023
to declare that the pandemic was no
longer a Public Health Emergency
of International Concern.
Long-term viability statement
In accordance with provision 31 of
the UK Corporate Governance Code,
the Directors have assessed the
viability of the Group over a five-year
period to 31 December 2028, by
carrying out a robust assessment of
the potential impact of the principal
risks and uncertainties on the Group’s
current position, including those that
would threaten the Group’s business
model, future performance, solvency
or liquidity. This is documented
on the following pages.
The Directors have determined that a
five-year period is an appropriate period
over which to provide the viability
statement of the Group, as the Group’s
strategic review covers a five-year period.
Furthermore, the Directors believe
the five-year period appropriately
reflects the average business cycles of
the business lines in which the Group
operates, particularly in relation to capital
expenditure investment horizons. In
modelling the viability scenario, we have
made the assumption that we will be able
to refinance external debt and renew
committed facilities as they become due.
In addition to the bottom-up strategic
review process where the prospects
of each business line are reviewed,
an assessment has been made of the
potential operational and financial
impacts on the Group of the principal
risks and uncertainties outlined in the
following pages. The Directors have
also assessed certain combinations of
these principal risks and uncertainties
in a number of severe, but plausible,
scenarios, as well as the effectiveness
of any mitigating actions as set out
in the table on page 53. The Directors
Principal risks and uncertainties
Assessing and
managing our risks
This section sets out
a description of the
principal risks and
uncertainties that could
have a material adverse
effect on the Group’s
strategy, performance,
results, financial condition
and reputation.
Risk framework
The Board has overall responsibility
for the establishment and oversight
of the Group’s risk management
framework. This work is complemented
by the Group Risk Committee, whose
purpose is to manage, assess and
promote the continuous improvement
of the Group’s risk management,
controls and assurance systems.
This risk governance framework is
described in more detail in the Directors’
report in Book two, on pages 46 and 65.
The Group Audit Director and the
Group General Counsel, who report to
the Chief Financial Officer and Chief
Executive Officer, respectively, have
accountability for reporting the key risks
that the Group faces, the controls and
assurance processes in place and any
mitigating actions or controls. Both roles
report to the Audit Committee, attend
its meetings and meet with individual
members each year as required.
Risks are formally identified and recorded
in a risk register which is owned by
each of the Group’s divisional, regional
and functional risk committees. Risk
registers are updated throughout
the year by these risk committees
and are used to plan the Group’s
internal audit and risk strategy.
In addition to the risk registers, relevant
operational and functional leaders for
each site are required to complete a
year-end compliance certification to
confirm that management controls have
been effectively applied during the year.
The return covers Sales, Operations, IT,
Finance, Sustainability and People.
52
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Principal risks and uncertainties Continued
Scenario
Associated principal risks
Description
Failure to identify, understand and
respond to regulatory or political changes
results in loss of revenue, profitability,
market share and/or adversely changes
the competitive landscape.
Failure to respond/adapt to a customer
service issue leads to a loss of key
customers and detrimentally impacts
reputation.
An ethical and/or quality breach leads
to litigation (including significant fines
and debarment from certain territories/
activities), reputational damage, loss
of accreditation and erosion of
customer confidence.
A serious data security/IT systems breach
results in a significant financial penalty
and a loss of reputation among customers.
Regulatory
environment
change
• Industry and competitive landscape
• Customer service
• Regulatory and political landscape
• People retention
• Reputation
• Macroeconomic
• Industry and competitive landscape
• Customer service
• Business ethics
• People retention
• Reputation
• Macroeconomic
• Business ethics
• People retention
• Financial risk
• Health, safety and wellbeing
• Reputation
• Macroeconomic
• Customer service
• People retention
• IT systems and data security
• Reputation
• Macroeconomic
Customer service
issue
Ethical and/or
quality breach
IT systems
breach
53
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Principal risks and uncertainties Continued
2
Customer service
3
People retention
A failure to focus on customer needs, to provide customer
innovation or to deliver our services in accordance with our
customers’ expectations and our customer promise.
The Group operates in specialised sectors and needs to attract and
retain employees with relevant experience and knowledge in order
to take advantage of all growth opportunities.
Possible impact
• Customer dissatisfaction and customer loss.
• Gradual erosion of market share and reputation if competitors are
perceived to have better, more responsive or more consistent
service offerings.
Possible impact
• Poor management succession.
• Lack of continuity.
• Failure to optimise growth.
•
• Loss of talent to competitors and lost market share.
Impact on quality, reputation and customer confidence.
Mitigation
• Net Promoter Score (‘NPS’) customer satisfaction, customer
sales trends and turnaround time tracking.
• Global and Local Key Account Management (‘GKAM’/’LKAM’)
initiatives in place.
• Customer feedback meetings.
• Customer claims/complaints reporting.
Mitigation
• HR strategy policies and systems.
• Development and reward programme to retain and motivate
employees.
• Succession planning to ensure effective continuation of
leadership and expertise.
2023 update
This risk remains stable compared with 2022.
2023 update
This risk remains stable compared with 2022.
Operational
1
Reputation
Reputation is key to the Group maintaining and growing its
business. Reputation risk can occur in a number of ways: directly
as the result of the actions of the Group or a Group company
itself; indirectly due to the actions of an employee or employees;
or through the actions of other parties, such as joint venture
partners, suppliers, customers or other industry participants.
Possible impact
• Failure to meet financial performance expectations.
• Exposure to material legal claims, associated costs and wasted
management time.
• Destruction of shareholder value.
• Loss of existing or new business.
• Loss of key staff.
Mitigation
• Quality Management Systems; adherence to these is regularly
audited and reviewed by external parties, including accreditation
bodies.
• Risk Management Framework and associated controls and
assurance processes, including contractual review and liability
caps where appropriate.
• Code of Ethics, which is communicated to all staff, who undergo
regular training.
• Zero-tolerance approach with regard to any inappropriate
behaviour by any individual employed by the Group, or acting
on the Group’s behalf.
• Whistleblowing programme, monitored by the Group Risk
Committee, where staff are encouraged to report, without risk,
any fraudulent or other activity likely to adversely affect the
reputation of the Group.
• Relationship management and communication with external
stakeholders.
2023 update
This risk remains stable compared with 2022. The Group continues to
invest in staff development, quality systems and standard processes to
prevent operational failures.
54
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Principal risks and uncertainties Continued
4 Macroeconomic
5
Health, safety and
wellbeing
6
Industry and
competitive landscape
Macroeconomic factors such as a global/market downturn, inflation,
supply chain and logistics restrictions, materials shortages, and
contraction/changing requirements in certain sectors.
Any health and safety incident arising from our activities. This could
result in injury to Intertek’s employees, subcontractors, customers
and/or any other stakeholders affected. Wellbeing impacts on our
people resulting from pandemics and other similar events.
A failure to identify, manage and take advantage of emerging and
future risks.
Examples include the opportunities provided by new markets and
customers, a failure to innovate in terms of service offering and
delivery, the challenge of radically new and different business
models; the failure to foresee the impact of, or adequately respond
to and comply with, changing or new laws and regulations; a failure
to anticipate and address the operational, strategic, regulatory and
reputational impact of climate change and environmental factors;
and a failure to identify and take advantage of the impact of
changes to our clients’ operations and supply chains.
Possible impact
•
Impact on revenue.
• Falling market share.
• Shrinking customer base.
Impact on share price.
•
Possible impact
•
Individual or multiple injuries to employees and others.
• Litigation or legal/regulatory enforcement action (including
prosecution) leading to reputational damage.
• Loss of accreditation.
• Erosion of customer confidence.
• Wellbeing – individual or multiple instances of stress-related issues
and/or illnesses, absenteeism, and related impacts on morale.
Possible impact
• Failure to maximise revenue opportunities.
• Failure to take advantage of new opportunities.
• Lack of ability to respond flexibly.
• Erosion of market share.
•
Impact on share price.
• Sanctions and fines for non-compliance with new laws, etc.
Mitigation
• We continue to focus on developing business in new markets and for
Mitigation
• Quality management and associated controls, including safety
new customers.
• We continue to focus on innovations in our service offerings.
• We continue to monitor trends and customer pipelines.
• We conduct regular strategic and business line reviews, including
budget forecasting.
• We continue to monitor the impacts of external risk factors and have
access to data and analysis from our external advisers.
training, appropriate PPE (Personal Protective Equipment), Health
and Safety policies (including due diligence on sub-contractors),
meetings and communication.
• Avoiding fatalities, accidents and hazardous situations is paramount.
It is expected that Intertek employees will operate to the highest
standards of health and safety at all times and there are controls in
place to reduce incidents.
• Business continuity planning.
• Employee wellbeing programme.
Mitigation
• GKAM and LKAM initiatives in place.
• Diversification of customer base.
• Focus on new services and acquisitions.
• Tracking new laws and regulations.
• Regular strategic and business line reviews.
• Development of ATIC-selling initiatives.
• NPS customer research to understand customer satisfaction.
• Continuing to drive innovation at the core.
2023 update
This risk remains stable compared with 2022.
2023 update
This risk remains stable compared with 2022.
2023 update
This risk remains stable compared with 2022.
55
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Principal risks and uncertainties Continued
Operational (continued)
7
IT systems and
data security
Systems integrity: major IT systems integrity issue, or data
security breach, either due to internal or external factors such
as deliberate interference or power shortages/cuts, etc.
Systems functionality: a failure to define the right IT strategies,
maintain existing IT systems or implement new IT systems with
the required functionality and which are fit for purpose, in each
case to support the Group’s growth, innovation and competitive
customer offering.
Data security: a failure to adequately protect the Group’s
confidential information, customer confidential information or
the personal data of the Group’s employees, customers or other
stakeholders.
Possible impact
• Loss of revenue due to down time.
• Potential loss of sensitive data with associated legal implications,
including regulatory sanctions and potential fines.
• Potential costs of IT systems' replacement and repair.
• Loss of customer confidence.
• Damage to reputation.
• Loss of revenue/profitability if we fail to adopt an IT investment
strategy which supports the Group's growth, innovation and
customer offering.
Information systems policy and governance structure.
Mitigation
•
• Regular system maintenance.
• Backup systems in place.
• Disaster recovery plans that are constantly tested and improved
to minimise the impact if a failure does occur.
• Global Information Security policies in place (IT, Data Protection,
CyberSecurity).
• Adherence to IT finance systems controls (part of Core Mandatory
Controls ('CMCs')).
• Adherence to IT general controls.
•
Internal and external audit testing.
• Processes to ensure compliance with GDPR.
8
Contracting
Agreeing unfavourable terms with customers and/or suppliers as a
result of not following agreed contract review processes, and/or
failing to negotiate appropriate terms.
Possible impact
• Margin−decretive work.
• Onerous liabilities and exposures.
• Non-optimised pricing.
• Financial exposures due to claims and litigation.
Mitigation
• Any deviations from our standard contract terms are subject to
legal review and approval, and all contracts must be approved in
line with our Authorities Grid (which sets out approval limits based
on contract values and other relevant factors).
• We continue to operate our claims notification procedure, including
claims management and insurer liaison where needed.
• Both our contracting and claims processes are supported by
training programmes for relevant staff, and the use of relevant
systems and databases.
2023 update
This risk remains stable compared with 2022.
2023 update
This risk remains stable compared with 2022.
56
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Principal risks and uncertainties Continued
Legal and Regulatory
9
Regulatory and
political landscape
10
Business ethics
Financial
11
Financial risk
A failure to identify and respond appropriately to a change in law
and/or regulation, or to a political decision, event or condition which
could impact demand for the Group’s services or the Group’s ability
to grow, innovate and/or provide a competitive customer offering in
any existing or new industry sector or market.
Non-compliance with Intertek’s Code of Ethics (‘the Code’) and/or
related laws such as anti-bribery, anti-money laundering, and fair
competition legislation. Non-compliance could be either accidental
or deliberate, and committed either by our people or sub-contractors
who must also abide by the Code.
Risk of theft, fraud or financial misstatement by employees. On
acquisitions or investments, the financial risk or exposure arising
from due diligence, integration or performance delivery failures.
Possible impact
• Loss of revenue, profitability and/or market share.
•
Increase to costs of operations, reduction in profitability.
• Reduction in the attractiveness of investment in specific
businesses, sectors or markets and/or adverse change in the
competitive landscape.
Possible impact
• Litigation, including significant fines and debarment from certain
territories/activities.
• Reputational damage.
• Loss of accreditation.
• Erosion of customer confidence.
•
Impact on share price.
Mitigation
• Monitoring of regulatory environment and political developments.
• Analysis of impact of regulatory and political changes on operational
Standard Operating Procedures ('SOPs') and Group policies.
• Membership of relevant associations, e.g. TIC Council with related
advocacy and liaison activities, including in relation to developing
climate-related or environmental regulations.
2023 update
This risk remains stable compared with 2022.
57
Mitigation
• Annual Code of Ethics training and sign-off requirement.
• Whistleblowing programme, monitored by the Group Risk Committee,
where staff are encouraged to report, without risk, any fraudulent or
other activity likely to adversely affect the reputation of the Group.
• Enhanced processes for engagement with suppliers and third
parties.
• Zero-tolerance approach with regard to any inappropriate behaviour
by any individual employed by the Group or acting on the Group’s
behalf.
• The Group employs local people in each country who are aware of
local legal and regulatory requirements. There are also extensive
internal compliance and audit systems to facilitate compliance.
Expert advice is taken in areas where regulations are uncertain.
• The Group continues to dedicate resources to ensure compliance
with the UK Bribery Act and all other anti-bribery legislation, and
internal policy.
2023 update
This risk remains stable compared with 2022.
Ongoing annual confirmations ensure that staff verify compliance with
the Code.
During 2023, 106 (2022: 91) non-compliance issues were reported
through the whistleblowing hotline and other routes. All were
investigated, with 39 (2022: 24) substantiated and appropriate
corrective and disciplinary action taken.
Possible impact
• Financial losses with a direct impact on the bottom line.
• Large-scale losses can affect financial results.
• Potential legal proceedings leading to costs and/or
management time.
• Corresponding loss of value and reputation could result in funding
being withdrawn or provided at higher interest rates.
• Possible adverse publicity.
Mitigation
• The Group has financial, management and systems controls in
place to ensure that the Group’s assets are protected from major
financial risks.
• Adherence to Authorities Grid (which sets approval limits for
financial transactions).
• Stringent controls on working capital and cash collection.
• Legal, financial and other due diligence on M&A and other
investments.
• Monitoring adherence to our CMCs and tracking of remediations by
our compliance and finance controls teams and using our framework
of risk committees.
• A detailed system of financial reporting is in place to ensure that
monthly financial results are thoroughly reviewed. The Group also
operates a rigorous programme of internal audits and there are also
management reviews. Independent external auditors review the
Group’s half-year results and audit the Group’s annual financial
statements.
2023 update
This risk remains stable compared with 2022.
We continue to review and update the CMCs on an annual basis and
use them for year-end compliance certification.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
TCFD statement
TCFD statement
Our TCFD journey
We believe that, as a sustainable business
and a leading provider of sustainability
solutions to more than 400,000
companies, Intertek has an important
role to play in taking action on climate
change and supporting the transition
to a low-carbon economy – both for our
clients and in our own value chain.
We are also committed to total
transparency on the effect of climate
change and the risks and opportunities
of decarbonisation on our operations,
strategy and financial planning – including
by implementing the recommendations
of the Task Force on Climate-related
Financial Disclosures ('TCFD') in full.
We have set ambitious targets to get
to net zero emissions by 2050, with
interim targets to 2030, which have
been validated by the SBTi. In 2023,
our rigorous monthly performance
management of climate-related
action plans delivered operational
market-based emissions reductions
of 10.8% against 2022.
Putting climate change and
decarbonisation in context
Climate change policies, disclosure
requirements, and public,
consumer and investor pressure
have led to a “race to net zero” by
governments and corporations –
with the aim being decarbonisation
of the global economy in line
with Paris Agreement goals
to limit global warming.
Decarbonisation to a point of net
zero carbon emissions will involve
economic, political and societal
changes. The key to achieving it
lies in the energy transition – a
shift from reliance on fossil fuels
to renewables and green energy
sources, with the significant changes
in energy infrastructure that
involves. It will require a reduction
in the carbon footprint of global
activities: transport and travel;
facilities and construction; supplies
consumed; and goods and services
produced. The likelihood – based
on the current rate of progress – is
that achieving net zero within the
Paris Agreement timeframe will
require the scale development and
use of new carbon capture and
storage technologies, together
with breakthrough innovations to
accelerate the reduction of carbon
emissions linked to manufacturing,
transportation and consumption.
Conversely, if decarbonisation
goals are not met, the effects
of climate change will increase
and extreme weather events
will be more likely. Governments
and corporations will need to
consider mitigating the risks of this
outcome by ensuring that their
energy, manufacturing and supply
networks are resilient and secure.
58
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our TCFD journey
8 Systemic CO2 emission
1 collection in all sites/
0
2 operations
TCFD statement Continued
2 Compliant with TCFD
2
0
2
recommendations
2 CO2 reduction targets
2
for all employees
0
2 included in yearly
compensation
2 Country-specific targets
2
and action plans to
0
2 reduce emissions
7 First Group-wide
1
0 GHG emission
2 reduction target set
1 Commitment to net
2
0 zero by 2050
2
3 SBTi
2
0
2
Validation
Voluntary
0 disclosure
2
0 against TCFD
2
recommendations
Systemic monthly
2 performance management
2
0 of emission reductions
2 and action plans
59
Our TCFD compliance statement
The TCFD requires the disclosure
of information aligned to its core
elements – governance, strategy,
risk management, and metrics and
targets. The TCFD aims to improve the
disclosure of climate-related risks and
opportunities and provide stakeholders
with the necessary information to
undertake robust and consistent
analyses of the potential financial
impacts of climate change. We recognise
the value that the recommendations
bring and continue to align and enhance
our climate-related disclosures.
We set out below our climate-related
financial disclosures which are consistent
with all TCFD recommendations
and recommended disclosures1.
Our TCFD disclosures are set
out in five sections:
Section 1: our governance of
climate-related risks and
opportunities
Section 2: how we consider climate
change in our strategy
Section 3: our climate-related risk
management approach
Section 4: our climate-related
metrics and targets
Section 5: our climate change
methodology and approach
We have integrated climate-related
disclosures throughout our Annual
Report. These are included through
cross-references to other sections
containing further relevant information.
1. Figure 4 of Section C of the report entitled
“Recommendations of the Task Force on
Climate-related Financial Disclosures” published
in June 2017 by the TCFD.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
TCFD statement Continued
Section 1: Governance
TCFD recommended disclosures
Further information
a) Describe the Board’s oversight of climate-related
risks and opportunities
b) Describe management’s role in assessing and
managing climate-related risks and opportunities
• Our Governance structure (Book two, pages 46-47)
• our Beyond Net Zero Steering Committee (whose members include our Group CEO, Group Company
Secretary, Group Head of Sustainability, EVP – Sustainability, SVP – Corporate Development and Group Chief
Marketing & Communications Officer), which has oversight of our Total Sustainability agenda including
internal and external climate-related actions over and above our GHG and net zero commitments; and
• Internal control and risk management (Book two,
• our specific CEO-led working group on TCFD / climate-related risks and opportunities.
page 65)
1 a) Our Board’s oversight of climate-related risks and opportunities
Our Board of Directors is responsible for the oversight of climate-related risks and opportunities. Climate-
related risks are integrated into every Board agenda as part of the Board’s review of risks and our integrated
risk, control and compliance approach. Climate-related issues are considered as part of the Board’s strategic
review sessions and reflected in the Board’s strategic review and guidance.
The Board takes emerging and systemic climate-related risks and opportunities into account:
1. when considering the Group Risk footprint and our internal controls/risk management policies at each Board
meeting; and
2. in reviewing the Group’s principal risks and in the risk modelling that feeds into the longer-term viability
statement.
During the year the Board was able to draw on the climate-related expertise of Gill Rider, who is also a member
of Pennon Group plc’s ESG committee and President of the Marine Biological Association, and Tamara Ingram,
who is chair of the ESG committee for Marks and Spencer Group plc.
The Group’s Head of Sustainability and EVP – Sustainability report to the Board on our climate-related risks and
opportunities, respectively, from an internal and external perspective, as part of an annual in-depth Intertek
Total Sustainability review. In addition, the Board receives specific updates on our TCFD approach and progress
during the year. The Board monitors and oversees our progress against our science-based targets and our
climate-related action plans.
1 b) Management’s role in identifying, assessing and managing climate-related risks
and opportunities
We believe that assessing and managing climate-related risks and opportunities is an integral part of our
overall integrated risk management approach. Our framework of regional, divisional and functional risk
committees, considers climate-related risks and opportunities and identifies and implements appropriate
action plans. This creates an awareness and ownership of climate-related risks and opportunities within our
operational, HR, compliance, finance and insurance leadership.
In addition, climate-related risks and opportunities are identified, managed and tracked by:
• our Net Zero Steering Committee (whose members include our Group CEO, Group CFO, Group Company
Secretary, EVP – Sustainability, Head of Finance – Sustainability and Group Head of Risk) focuses on the
implementation and performance of our net zero roadmap and our science-based emission reduction targets
to meet our ambition to get us to net zero by 2050;
60
Our approach means that we can apply the management expertise we have from providing TCFD and other
climate-related ESG Assurance solutions to our clients in the assessment and management of our own risks
and opportunities.
Section 2: Strategy
TCFD recommended disclosures
Further information
a) Describe the climate-related risks and
opportunities the organisation has identified
over the short, medium, and long term
b) Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy, and financial planning
c) Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower
scenario
• Principal risks and uncertainties (pages 52-57)
• Strategic Report; Our business model (pages 16-25)
• Sustainability Report (Book two)
• Financial Report (Book three)
• Strategic Report; Our business model]
• Sustainability Report (Book two)
• Financial Report (Book three)
At the high level, our ambition is to become a net zero emissions business by 2050 while mitigating the
physical impact of climate change on our operations and supporting our clients with sustainability solutions.
Innovative sustainability services have been at the core of our business and strategy for over 100 years. Today’s
“race to net zero” by governments and corporations is beneficial to Intertek given our investments in sustainability
– including our operational sustainability solutions; our carbon emissions certification, CarbonClear™; our ESG
disclosures verification; and our corporate sustainability certification, TSA. Ongoing dependency on traditional oil
and gas, and the significant investments required to scale up renewable energy, will mean our Industry Services
businesses should benefit from traditional energy investment and the parallel developments in the renewables
space – and our differentiated World of Energy value proposition and our total energy expertise position us
strongly to take advantage of the global energy transition required to get to net zero.
The world will face difficulties in meeting Paris Agreement targets and addressing climate change unless:
all companies, public and private, commit to reduce carbon emissions to net zero; significantly increased
investments are made in renewables; and there is breakthrough innovation to accelerate carbon emission
reductions and facilitate carbon storage and capture. This negative outcome should lead to increased demand
for our services as it will lead to an increased focus on developing low-carbon products and other innovations
and technologies that will reduce emissions, including increased investment in carbon capture and storage.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report TCFD statement Continued
2 a) Our climate-related risks and opportunities
Based on our supply and demand model and decarbonisation scenarios (details of which are set out in section
5), our view of Intertek’s climate-related risks and opportunities is as follows.
Climate-related opportunities
Opportunity area
Description of opportunities
Energy
transition
The key question for our energy-related businesses is what the risks and opportunities of
a transition to lower carbon / renewable energy will look like, and over what timeframe.
The world will be dependent on traditional oil and gas for longer than people think: there
has been under-investment in oil and gas exploration since 2015; there is structural
under-investment in alternative energy sources; renewables will take time to scale,
creating risks for governments and economies in moving away too quickly from traditional
energy sources.
This will require our clients to make incremental investments in traditional oil and gas
infrastructure and E&P. Our Industry Services businesses should therefore benefit over
the next 20 to 25 years both from traditional energy investment and the parallel
developments in the renewables space.
Our Caleb Brett business should benefit from the increasing global demand for oil and gas
in the short-term, and in the medium- to long-term continue to benefit from an increase in
the production and consumption of oil-related products as well as the development /
growth of greener fuels – biofuels and synthetic. Our clients will need to make significant
investments in traditional oil and gas if they are to continue to meet the growing global
energy demand.
The carbon capture and carbon removal technologies which will be required to achieve net
zero targets are currently at an early stage of development and it is likely that increased
investments will be required to accelerate their production and availability: this should
benefit our engineering-based inspection businesses within Industry Services.
The energy transition that certain of our traditional oil and gas clients face as they move
to being total energy providers underlines the importance of our differentiated World of
Energy value proposition. Intertek’s range of energy expertise is able to support our
clients across the full World of Energy spectrum: from traditional oil and gas, petroleum
refining and distribution, petrochemicals and power generation to nuclear power, solar,
biofuels, tidal, wave and wind power. This gives Intertek a high-level, cross-sectional view
of energy industry topics and trends that we believe will position us strongly to take
advantage of current and future business development linked to energy transition.
Opportunity area
Description of opportunities
Carbon
footprint
transition
For our Consumer Products businesses, the risks and opportunities of decarbonisation
will be linked to our clients’ transition to lower-carbon logistics, manufacturing/production
and supply chain networks.
We expect consumer spending on products to continue to increase and the number of
SKUs produced to also increase. An increasing consumer and regulatory focus on
sustainability will lead to changes in demand for products with lower carbon footprints.
Equally, manufacturers’ own sustainability goals will lead them to seek raw materials with
lower carbon footprints and to develop lower carbon footprint products.
We believe that corporations will face difficulties in achieving their net zero targets given
the financial, organisational and practical complexities of transitioning to low-carbon
footprint operations. We therefore expect the demand for existing products to stay high
for longer. Given the difficulties in getting to net zero without R&D and investments in
logistics and supply chains, our Consumer Products businesses will benefit from higher
corporate investments in R&D to design low-carbon products at the start of the value
chain and from investments in supply chain relocations closer to home markets to reduce
carbon footprints and increase resilience.
Policy
Climate-related laws and regulations will increase over time.
In the short term, governments are likely to limit policies which require mandatory
behavioural changes to the industry sectors which are the most critical to
decarbonisation: energy; infrastructure; and transportation. It is likely that corporates in
other industry sectors will be encouraged to decarbonise by increasing disclosure and
transparency requirements.
The regulatory approach over the medium to longer-term will change depending on
companies’ / countries’ success in meeting Paris Agreement targets and regulation will
become less voluntary and more mandatory over time if those targets are likely to be
missed based on existing behaviours.
We expect to benefit from increased regulation to drive investment and product
development by our clients in the energy, infrastructure and transportation sectors.
We expect our Business Assurance businesses to benefit from an increase in supplier
audit and management solutions as corporations seek to address their scope 3 / supply
chain carbon emissions.
ESG disclosure requirements are likely to increase in response both to new regulations and
disclosure standards and to increasing investor and stakeholder expectations. We expect
this to lead to increased demand for our ESG disclosure / verification services.
61
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report TCFD statement Continued
Climate-related risks
Risk area
Description of risk
Physical
impacts
We consider that there are three types of possible physical impacts:
1. Direct physical impacts, where the increased frequency and/or severity of extreme
weather events causes an increased incidence of disruption to our own operations /
supply chain / transportation networks;
2. Client physical impacts, where the extreme weather events cause disruption to our
clients’ operations and therefore changes to client demand – or the geographic location
of client demand – for our services; and
3. Economic physical impacts, where temperature increase and extreme weather events
reduce economic activity, leading to a fall in demand for our services in line with fall in
consumer demand / client production.
Based on our natural catastrophe experience and modelling, and because of the
capital-light nature of our operations and our ability to redirect work within our own
network, we believe that the impacts of extreme weather events to Intertek are likely
to be local and not material at the Group level.
2 b) The impact of climate-related risks and opportunities on our businesses, strategy
and financial planning
Intertek has been a global thought and innovation leader in sustainability services for decades,
and sustainability services are core to our global business. We help customers across all aspects
of sustainability, covering all major industries, with end-to-end sustainability solutions.
Climate-related opportunities are one part of our overall sustainability strategy. At the high level, we believe
that the actions which companies and corporations will need to take to transition to a low-carbon economy
will be an opportunity for us and will accelerate the demand for our ATIC solutions, including:
• our climate-related operational sustainability services (such as energy efficiency, carbon footprint
or zero waste to landfill certifications);
• our corporate sustainability solutions (where we help corporations to establish and validate the
effectiveness of their own sustainability programmes); and
• our Intertek ESG Solutions (where we independently verify our clients’ sustainability reporting
and disclosures).
Our World of Energy businesses continue to scale up investments in strategic growth areas driven by
climate-related factors, such as:
• An increase in total energy demand driven by GDP and population growth.
• The need to address structural underinvestment in traditional oil & gas as renewables lack scale.
• Technology and infrastructure investments needed to build scale renewable infrastructure.
• The significant investments and innovations required to meet net zero pathways, including developments
in hydrogen, synthetic fuels, carbon capture and carbon storage.
Our strategy includes M&A investments such as our acquisition of Clean Energy Associates which has enabled
us to expand our sustainability service offering in the fast-growing quality assurance market for solar energy
and energy storage. It also includes organic innovations such as Intertek Hydrogen, Intertek CarbonClear™ and
CarbonZero, and Intertek Green R&D.
Our climate-related risks and opportunities assessment also feeds directly into our wider strategy, portfolio
and financial planning, including our planning on:
• climate-change mitigation activities and our net zero action plans; and
• the location of our facilities.
We believe the impact of climate-related risks and opportunities is as follows:
Timeframe
Scenario
Climate-related opportunities
Short
Medium
Long
RCP4.5
RCP8.5
Transition impacts
• Energy transition
• Carbon footprint
transition
Policy impacts
Climate-related risks
Physical impacts
Key: ◊ – ◊◊◊ = low – high impact
* Scenario sensitivity
◊
◊
◊
◊◊
◊◊
◊◊
◊
◊◊◊
◊◊◊
◊◊◊
◊◊
*
*
*
Financial
impact
See note 1
*
See note 2
We continue to develop innovative ATIC service offerings to support our clients’ low-carbon transition aims
and to enable them to comply with the increasing regulatory requirements relating to sustainability and ESG.
Note 1: Our pre-Covid (2014 – 2019) organic revenue CAGR was c.3%. Sustainability / ESG services were a driver of that revenue growth.
We expect the Group revenue growth from Sustainability / ESG services to accelerate.
Note 2: In order to assess our physical impact risk, we have worked with Willis Towers Watson ('WTW') to carry out a portfolio exposure
assessment based on scenario modelling supported by WTW’s Climate Diagnostic technology platform. For this purpose, our portfolio includes
943 sites (2022: 985 sites) and associated assets and revenues.
The result is an assessment of the percentage of our portfolio that is exposed to a material level of climate-related risk over four time periods
(today; 2030; 2050; 2100) and under two scenarios (RCP4.5 and RCP8.5).
62
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Climate Scenario: RCP4.5 (2–3ºC)
2023
2030
2050
2100
TCFD statement Continued
% of portfolio (assets & revenues) exposed to physical impact risks
55% of portfolio exposed
to at least 80 heatwave days
per year by 2050, compared
to 39% today
53% exposed to at least
5 days of heavy rainfall
over 30mm by 2050
compared to 46% today
60
55
52
56
53
49
46
39
Slowly increasing portion
of locations exposed to
at least 4 months of
drought per year
10% of the portfolio
exposed to fire weather
conditions for at least
80 days in a year
11% in river flood zones
by 2050. 1% of flooding
improbability a year
4% of the portfolio exposed
to extreme risk of flooding
from storm surge events
and sea level rise by 2050
Small and largely unchanged portion
of the total portfolio exposed to severe
windstorms generating damaging gusts
(either from tropical cyclones i.e. hurricanes
or extratropical cyclones i.e. winter storms)
Heat
Precipitation
11 10
7
Drought
16
15
9
10 10
8
11 11 11
4
4
4
4
2
3
3
3
2
2
2
2
Fire
River flood (defended)
Sea level rise
Tropical cyclone
Extratropical cyclone
% of portfolio (assets & revenues) exposed to physical impact risks
Climate Scenario: RCP8.5 (4ºC)
2023
2030
2050
2100
61% of the portfolio
exposed to at least 80
heatwave days per year
by 2050, compared to
39% today
56% of the portfolio
exposed to at least 5 days
of heavy rainfall over 30mm
by 2050 compared to
46% today
71
61
55
39
60
56
50
46
Increasing portion of
locations exposed to
at least 4 months
of drought per year
45
25
Slowly increasing portion
of the portfolio exposed
to fire weather conditions
for at least 80 days in a year
10% in river flood zones
by 2050. 1% probability
of flooding in a year
4% of the portfolio
exposed to extreme risk
of flooding from storm surge
events and sea level rise
by 2050
Small and largely unchanged portion of
the total portfolio exposed to severe
windstorms generating damaging gusts
(either from tropical cyclones
i.e. hurricanes or extratropical cyclones
i.e. winter storms)
Heat
Precipitation
Drought
Fire
River flood (defended)
Sea level rise
Tropical cyclone
Extratropical cyclone
10
7
9
11 11
11 10 11
8
4
4
4
5
2
3
3
3
2
2
2
2
17
Figure 1:
Physical risk exposure
under an RCP4.5 scenario:
Figure 2:
Physical risk exposure
under an RCP8.5 scenario:
63
)
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i
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P
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
TCFD statement Continued
Assessing the impact of acute weather events
The likely impact of an acute weather event is a loss of revenue due to a shutdown of our facilities. It is difficult
to provide a precise estimate of the financial impact, which depends on factors including the severity of the
event, the geography affected and our ability to redistribute work, and the duration of the shutdown.
Our assessment reveals a minimal increase in expected portfolio exposure to acute weather events, and we
therefore expect the incidence and financial impact of such acute events to be similar to today. Based on
recent experience, in FY17 hurricanes Harvey and Irma impacted the operations of our clients in southern
regions of the USA during a three-month period, in turn impacting our business. These two operational
disruptions reduced our revenue performance by £5m at constant currency over the period August to October
2017, negatively impacting our divisions. Over the five-year period to date, our operations have been impacted
by about ten extreme weather events.
2 c) Our organisational resilience to the risks of climate change and decarbonisation scenarios
We believe our operations and strategy have a high degree of resilience to the risks of climate change under
both an RCP 4.5 and RCP 8.5 scenario:
• Our extensive network – over 1,000 labs in over 100 countries – means that we are well positioned to take
advantage of any climate-related changes in supply chains (either changes to suppliers, to the raw materials
being supplied or to the geographic location of supply chains).
• Our products inspection and assurance businesses are flexible as they use field-based inspectors and
auditors and we can deploy personnel / sub-contractors as required.
• Our client-base of over 400,000 clients is diverse, with no material dependencies, which also de-risks
geographic changes in our points of service delivery.
• Our capital-light earnings model de-risks us from climate-related changes to our clients’ supply chains and
physical impacts of climate change as we have a low cost of market entry and exit.
• We are able to redirect work within our own network in order to mitigate the impact of climate-related
disruptions.
• We do not anticipate a material impact of climate-related policies directly on our business. As a professional
services provider, we do not operate in a sector which is likely to be a key focus for mandatory
decarbonisation behavioural changes. Our broad geographic footprint de-risks us from the impact of national
regulations. Our capital-light model mitigates our exposure to climate-related policies.
The assessment shows that our broad geographic footprint and proven high-quality cash generative earnings
model (covered in more detail in 2 c) below) is an advantage for long-term climate resilience. Nevertheless, it
does indicate an increased physical impact exposure to our portfolio, varying by type of climate-related
extreme weather event, under both the RCP4.5 and RCP8.5 scenarios:
• a low to medium increase by 2050 in exposure to chronic (extended, non-localised) weather events
– heat, precipitation, drought, sea level rise; and
• a low increase by 2050 in exposure to acute (localised, one-off) weather events – river floods, fire, tropical
and non-tropical storms
Assessing the impact of chronic weather events
It is difficult to assess the physical impact of chronic weather events as these are likely to be regional or global
in nature but can be largely or fully addressed with systemic risk mitigation actions at the Intertek site /
operational level:
Physical risk (chronic
weather events)
Impact on business
Mitigations
Precipitation
• Property damage and business disruption • Insurance cover
• Add identified climate-related risk into our
business continuity planning for sites with
predicted exposure
• Physical / structural protections for sites
with predicted exposure
• Add identified climate-related risk into our
business continuity planning for sites with
predicted exposure
• Productivity changes as severe heat
affects people and/or equipment
• Cost increases linked to an increased
requirement for air conditioning / cooling
• Increase energy efficiency / use of solar /
renewable energy
• Operational impact from water scarcity
• Changes to demand for our services linked
to changing consumption patterns,
population migration or conflict
• Add identified climate-related risk into our
business continuity planning for sites with
predicted exposure
• Focus on reducing water usage / efficiency
Heat
Drought
Sea level rise
• Property damage and business disruption • Insurance cover
• Add identified climate-related risk into our
business continuity planning for sites with
predicted exposure
• Physical / structural protections for sites
with predicted exposure
64
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report TCFD statement Continued
Section 3: Risk management
Section 4: Metrics and targets
TCFD recommended disclosures
Further information
TCFD recommended disclosures
Further information
a) Describe the organisation’s processes for
identifying and assessing climate-related risks.
b) Describe the organisation’s processes for
managing climate-related risks.
c) Describe how processes for identifying, assessing,
and managing climate-related risks are integrated
into the organisation’s overall risk management.
• Principal risks and uncertainties (page 52)
• Principal risks and uncertainties (page 52)
• Principal risks and uncertainties (pages 52-53)
3 a) Our process for identifying and assessing climate-related risks
Our processes for identifying and assessing climate-related risks take place within our risk committees, and
separately using the supply-and-demand model we have built for our World of Energy businesses, and our
work with WTW to model the exposure of our portfolio to the physical impacts of climate change. The most
significant insight from our work with WTW was that the exposure of our portfolio to acute weather events
was expected to increase only very marginally in the period to 2050, with any financial impact falling well
below the threshold for materiality.
In 2023, we have continued to review the exposure of our portfolio to physical climate change impacts using
the live model we have built with WTW and with ongoing review as part of our integrated risk management
process.
3 b) How we manage climate-related risks
Climate-related risks, and the related mitigation action plans, are reviewed at least quarterly by the Board and
are also considered by our framework of regional, divisional and functional risk committees and our Group Risk
Committee. The risk of physical impacts of climate change on our sites are also considered by a cross-
functional group including members of our finance, insurance, risk and sustainability teams. The portfolio
exposure modelling we have done with WTW allows us to assess – on a site-by-site basis – the changing
likelihood and impact of specific climate events (such as drought, precipitation, flooding and fire) under both
the RCP 4.5 and RCP 8.5 scenario in the short, medium and long term. We use the output of this model in our
opportunity and risk mitigation planning, and in local site business continuity planning.
3 c) Integration into our overall risk management
Our climate-related opportunities are reviewed as part of our overall budget, innovation, M&A, customer
insight and other processes. At the strategic level, the supply and demand model we have developed to look at
how the needs of our customers across our different businesses are likely to be affected by decarbonisation
allows us to assess how that is likely to affect their need for our end-to-end Total Quality Assurance services
across all points of their logistics, manufacturing/production and supply chain networks.
a) Disclose the metrics used by the organisation to
assess climate-related risks and opportunities in line
with its strategy and risk management process.
b) Disclose scope 1, scope 2, and, if appropriate, scope
3 GHG emissions, and the related risks.
c) Describe the targets used by the organisation to
manage climate-related risks and opportunities and
performance against targets
• Environment section (Book two, page 29)
• Environment section (Book two, page 29)
• Environment section (Book two, pages 27-29)
We publicly report on our scope 1, scope 2 and relevant scope 3 GHG emissions and the carbon intensity of
operational emissions by revenue. Environmental performance is disclosed in Book two of this Report. Our
measurement and reporting is aligned to the GHG Protocol Corporate Accounting and Reporting Standard
(2015) and the recommendations of the TCFD. As required, we report under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations and we apply the 2019 UK Government Environmental
Reporting Guidelines, including the Streamlined Energy and Carbon Reporting Guidance ('SECR'). Further details
can be found on page 29.
We have made several climate-related public commitments, on our own and with other organisations. We have
joined the global movement of 'Business Ambition for 1.5˚C’ and the UN Race to Zero campaign. In 2023, the
Science Based Target initiative ('SBTi'), who defines and promotes global best practice in science-based target
setting, validated our near-term targets:
"Intertek Group plc commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a 2019 base
year. Intertek Group plc also commits to reduce absolute scope 3 GHG emissions from business travel and
employee commuting 50% within the same timeframe. Intertek Group plc further commits that 70% of its
suppliers by spend covering purchased goods and services, capital goods and upstream transportation and
distribution, will have science-based targets by 2027."
We have rolled out country- and site-level specific targets which are reported monthly in our environmental
dashboards. Our rigorous GHG emissions performance management programme empowers our regional teams
to identify emissions sources, track progress against targets and KPIs, and implement concrete and measurable
climate-related action plans.
Our annual incentive plan continues to have an ESG element (with a 15% weighting) based on performance
against a GHG emissions reduction target.
65
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Section 5: Our climate change methodology and approach
TCFD statement Continued
The demand for our services depends on the supply of, and demand for, our clients’ products and services and
their need for our Total Quality Assurance services at specific risk points in their logistics, manufacturing and
supply chains.
To assess the impact of global decarbonisation on Intertek and our potential climate-related risks and
opportunities we have built a bottom-up supply and demand model for our World of Energy (Caleb Brett
and Moody) businesses which considers how the supply and demand of our clients’ products and services,
and therefore their need for Intertek’s services, is likely to change in line with two decarbonisation scenarios
that are aligned to the Intergovernmental Panel on Climate Change ('IPCC') Representative Concentration
Pathways (RCPs):
• Intermediate (RCP 4.5): Characterised by slowly declining emissions, this pathway assumes climate
policies will be invoked to limit emissions, resulting in likely global temperature rise of 2–3°C by 2100.
• High (RCP 8.5): Characterised by rising emissions, this pathway adheres to the current trajectory and
assumes no additional efforts are made to constrain emissions, leading to likely global temperature rise of
>4°C by 2100.
We have also used these two scenarios to evaluate Intertek’s climate-related physical risks.
We have considered impacts over the short term (0-2 years), medium term (2 years – 2030); and long term
(2030 – 2050).
In assessing materiality, we have considered both financial impacts on us and other considerations such as the
importance of key climate-related topics to our clients and other stakeholders. For financial impacts, we have
applied a materiality threshold of £20.8m, aligned with the materiality threshold in our financial statements.
We have considered the materiality of risks on a “net risk” basis i.e. taking into account relevant risk mitigations
and opportunities that may be linked to those risks.
Based on our view of global decarbonisation and the nature of our businesses and services, we have divided
the impacts of climate-related risks and opportunities on Intertek’s operations, activities and earnings model
into three categories:
• Transition impacts: the impact of transitioning to low-carbon economies and societies. We further divide
these into: energy transition impacts (the impact of transitioning to renewables and green energy sources);
and carbon footprint transition impacts (the impact of reducing the carbon footprint of global activities
including logistics, manufacturing/production and supply chains);
• Policy impacts: the impact of climate-related laws or regulations, or policies intended to drive a
decarbonisation agenda; and
• Physical impacts: the impact of extreme weather events on our and/or our clients’ facilities and operations.
66
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Group non-financial and sustainability information statement
Non-financial and sustainability information statement
The table below is intended to help our stakeholders understand our position on key non-financial matters and climate-related financial disclosures in line with
the reporting requirements contained in sections 414CA and 414CB of the Companies Act 2006. Our reporting on these topics and key performance indicators
is contained within this Strategic Report and also in the Sustainability Report, Book two.
Reporting requirement
Environment
Employees
Social matters
Human rights
Anti-corruption and anti-bribery
Description, implementation, due diligence, outcomes and additional information
Environment
Nomination Committee report
Risk management
People and Culture
Communities
Responsible Business
Principal risks and uncertainties
Responsible Business
Compliance, whistleblowing and fraud
Description of principal risks and impact of business activity
Principal risks and uncertainties
Description of the business model
Key performance indicators
Climate-related financial disclosures
The Strategic Report was approved by the Board on 4 March 2024.
On behalf of the Board
TCFD statement
Section 172 statement
Our business model
Financial KPIs
Non-financial KPIs
TCFD statement
André Lacroix
Chief Executive Officer
67
More in Book two, pages 26-32
More in Book two, pages 66-69
More in Book two, page 69
More in Book two, pages 10-17
More in Book two, pages 33-39
More in Book two, pages 40
More on pages 52-57
More in Book two, pages 40-41
More in Book two, pages 42 and 76
More on pages 52-57
More on pages 58-66
More in Book two, page 56
More on pages 16-25
More on pages 26-27
More on pages 28-29
More on pages 58-66
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Notes
68
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report CBP00019082504183028
Printed by a CarbonNeutral® Company certified to
ISO 14001 environmental management system.
Printed on material from well-managed, FSC®
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100% of the inks used are vegetable oil based,
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Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com
We are pleased to share our
Annual Report & Accounts
in a unique, three-book format:
Book one: Strategic Report
Book two: Sustainability Report
Where we discuss our growth
opportunities and strategic performance.
Contents
Book two: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Book three: Financial Report
Where we record our financial activities,
performance and position.
These separate, but connected books,
with their interconnected themes and
narratives, allow us to present what
we achieved in 2023 in a systemic,
end-to-end framework. They have
been designed to make it easier for our
stakeholders to fully understand our
business, how we bring quality, safety
and sustainability to life, what we
offer our clients and society, and the
opportunities ahead of us.
01 Chief Executive Officer's
sustainability letter
05 Our approach
07 Our Sustainability Excellence strategy
10 Sustainability performance
44 Directors' report
44 Governance at a glance
45 Compliance with the 2018 UK
Corporate Governance Code (‘Code’)
46 Governance structure
48 Chair's introduction
50 Board of Directors
53 Group Executive Committee
54 Board leadership and
company purpose
62 Composition, succession
and evaluation
65 Audit, risk and internal control
66 Nomination Committee report
70 Audit Committee report
78 Remuneration Committee report
104 Other Statutory Information
108 Statement of Directors’
responsibilities
Let's make the world
amazing together
and deliver sustainable growth
and value for all
Visit: intertek.com/investors
Intertek Group plc
Annual Report & Accounts 2023
Book one: Strategic Report
Book two: Sustainability Report Book three: Financial Report
Chief Executive Officer's sustainability letter
Sustainability Excellence
Our Sustainability Excellence
approach gives us the structure and
discipline we need to deliver against
our own performance targets.
That’s why Sustainability Excellence,
which we implement across every
Intertek operation, is firmly rooted
in our world-leading Intertek Total
Sustainability Assurance ('TSA')
standards (see page 06), through which
we’re helping organisations everywhere
track, measure, improve and report their
environmental and social impacts.
During 2023, I am delighted to report
that, once again, we made progress on
our Sustainability Excellence agenda,
as everyone at Intertek made their own
contribution to creating an ever better
world for future generations. Thanks to
them, our sustainability focus continued
to be on all those areas that matter most
to all of our stakeholders, customers,
employees, suppliers, regulators,
communities and shareholders.
I would therefore like to thank all
our people for their contribution to
our own and our customers’ success
during the year, as we collectively led
by example to help make the world
ever better for everybody. Their
commitment to the Intertek sustainability
agenda, underpinned by our unique
approach to Science-based Customer
Excellence, is an essential quality
that sets us apart in the global Total
Quality Assurance ('TQA') industry.
This exceptional commitment in turn
is driven by our company culture:
we know that ensuring ever better
performance year after year depends
on having an organisation that is truly
diverse, inclusive and empowering for
all our people. It’s only by nurturing
a workplace that helps our people to
grow, develop and innovate that we
will continue to accelerate our progress
along our good to great journey.
Chief Executive Officer's sustainability letter
An ever better world for
future generations
We know that ensuring ever
better performance year after
year depends on having an
organisation that is truly diverse,
inclusive and empowering for all
our people.
André Lacroix
Chief Executive Officer
01
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's sustainability letter Continued
Gaining SBTi validation was a rigorous
process, and I was delighted that
Intertek’s science-based targets meet
the strict criteria and recommendations
to confirm that we’re in line with the
ambition to limit global temperature
increases to 1.5°C above pre-industrial
levels. This validation effectively
underscores the positive impact we
have on the world, not only through the
services we provide to our customers
but also through our own, end-to-end
Sustainability Excellence agenda.
Reducing the impact of
our global operations
We are driving environmental performance
across our operations through science-
based reduction targets to 2030.
Our rigorous monthly performance
management of climate-related
action plans delivered operational
market-based emissions reductions
of 10.8% against 2022 and 36.7%
against our base year 2019.
One significant action we took in this
area during the year aims to further
strengthen our approach to carbon
monitoring and reporting that helps
us reduce the impact of our global
operations on the environment. This
was to double the frequency of our
previous annual employee Commuting
Survey, which we use to understand
the impact on our scope 3 emissions
of colleagues travelling between
their homes and our facilities.
See our non-financial KPIs, Book one
pages 28–29
Our responsibility in action
We believe that our areas of expertise
mean that we at Intertek have an
essential role to play in helping our
clients to take action on climate
change and support the transition
to a low-carbon economy.
And, as a large business in our
own right, we have important
responsibilities to act on sustainability.
It’s clear to me that without setting
an example that demonstrates our
own commitment, we wouldn’t have
the credibility we need to help our
clients navigate their own journeys.
That’s why we have committed to
adopting ambitious science-based
targets to reduce our operational
emissions and achieve net zero
emissions by 2050. I am particularly
pleased that during the year we
received validation from the Science
Based Targets initiative ('SBTi') for
our targets relating to reducing
greenhouse gas ('GHG') emissions.
This validation is therefore an important
step that has further validated our
commitment to achieving tangible
results in line with our Purpose,
Vision, Values and Strategy.
We have three key targets in this area.
First, to reduce our absolute scope 1
and scope 2 GHG emissions by 50%
by 2030, using 2019 as a base year.
Second, to reduce our absolute scope
3 emissions resulting from business
travel and commuting by 50% over
the same period. And third, to ensure
that 70% of our suppliers by spend
also have science-based targets in
place by the 2027 financial year.
02
Sustainability highlights
• Levels of Hazard Observations
increased, reflecting greater levels
of activity across our sites as well
as greater awareness and reporting
of health & safety overall.
• Since 2015, we have used the Net
Promoter Score (‘NPS’) process to
listen to our customers, enabling
us to improve our customer service
over the years consistently.
• We are driving environmental
performance across our operations
through science-based reduction
targets to 2030. Our rigorous monthly
performance management of
climate-related action plans delivered
operational market-based emissions
reductions of 10.8% against 2022 and
36.7% against our base year 2019.
• In 2023, our greenhouse gas ('GHG')
emissions reduction targets were
validated by the Science Based
Targets initiative ('SBTi').
• We recognise the importance of
employee engagement in driving
sustainable performance for all
stakeholders, and we measure
employee engagement against our
Intertek ATIC Engagement Index.
Our 2023 score was 87 (2022: 80).
• Our voluntary permanent employee
turnover improved to a low rate
of 12.3% (2022: 14.0%).
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Chief Executive Officer's sustainability letter Continued
This truly expresses my own firm belief
in the immense power of diversity,
empowering businesses to embrace
the differences that enable us to find a
better way ahead, deliver sustainable
growth and make a meaningful
contribution to society. Our MOSAIC
programme was launched to help all
of us to understand the power of
embracing diversity and inclusion.
This is designed to ensure we can
leverage better than ever before
that rich blend of talents from more
than 100 different countries, all
with different cultures, backgrounds
and beliefs, that have made us the
leading company we are today.
Our TQA solutions making the world
better, safer and more sustainable
As a company with 44,000 amazing
people across the world, working
with 400,000+ clients in almost
every industry, our TQA products
and services are indeed making
the world a better, safer and more
sustainable place for everybody.
All our ATIC services help to improve
our clients’ businesses in many ways.
But clients also ask us for solutions
specifically focused on their operational
and corporate sustainability needs.
Measuring our best practice progress
The SBTi was far from the only source
of validation that we received during
the year. We also participated in a wide
range of other forms of Environmental,
Social and Governance ('ESG')
ratings, indices and frameworks that
provide a valuable set of benchmarks
measuring our progress in terms
of best practice and the emerging
sustainability challenges we all face.
These included an AAA rating in the
MSCI ESG Ratings assessment, while
our Prime rating against the ISS ESG
requirements show that we meet all the
testing sustainability-related measures
that relate to companies in our sector.
We were also a constituent of the UK’s
FTSE4Good Index for the seventh
consecutive year, while our ESG
rating of 18.3 from Sustainalytics
indicates that we are at a low risk
of any material financial impacts
arising from ESG-related factors.
Finally, CDP recognised our
continuing progress as a member
of its Climate Change Programme,
with the award of a ‘B’ score.
Empowering our amazing
people to be ever better
Most of the above recognitions relate
solely to climate change, and our
sustainability focus extends much
further than on this essential area
alone. Above anything else, we are
a people-centric business, and we
recognise that our people are the
immensely powerful source of our
Amazing ATIC Advantage, fuelled by their
Science-based Customer Excellence.
The areas in which we continue to
emphasise the need for sustainability
excellence, beyond environmental
performance, therefore include health
& safety, employee engagement
and voluntary permanent employee
turnover, customer relationships via
our NPS, representation of women in
senior management roles, regulatory
compliance, and more. You can read about
initiatives undertaken in some of these
and other areas throughout this report.
Clearly, we want to take the performance
of our teams across the world to the
highest possible levels. During the
year, two initiatives designed to make
us ever better stood out for me.
One of these was the launch of our
Champions engagement process, which
uses Gallup’s data-science-based
expertise to deliver a continuous process
of survey and action planning to precisely
measure employee engagement. Its
findings can then be used by managers
and their teams to take positive steps
through action planning. The Champions
survey will be an ongoing process from
2024 onwards, enabling teams to track
their progress and work together.
For me, the second stand-out initiative of
2023 was one that addressed diversity.
This is particularly meaningful to me. I
have been truly inspired by the words
of former US President Jimmy Carter,
when in 1976 he referred to the nation’s
diversity in the following terms. “We
became not a melting pot, but a beautiful
mosaic,” he said. “Different people,
different beliefs, different yearnings,
different hopes, different dreams.”
03
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chief Executive Officer's sustainability letter Continued
TSA is our unique holistic programme
that delivers independent, end-to-
end solutions and assurance that
empower businesses both to achieve,
and to communicate with confidence,
Sustainability Excellence across all
aspects of their operations. With teams
of sustainability experts covering all
industries in more than 100 countries,
TSA comprises three core elements:
• Intertek Operational
Sustainability Solutions;
• Intertek ESG Solutions; and
• Intertek Corporate Sustainability
Certification.
Our TSA approach uses the deep
scientific, engineering and auditing
expertise of our sustainability teams to
meet our clients' needs: with industry
agnostic, industry-specific or tailored
solutions; with holistic solutions
covering everything from consulting
and gap assessment, to training, to
regulatory reporting and corporate
certification; and with actual, real-
world improvements in sustainability
in their operations and value chains.
intertek.com/sustainability
Investing for sustainable growth
As well as focusing on organic growth,
during the year we continued to invest
in those key areas of Intertek where
we expect demand to grow most in
the years ahead. We continued to
embed those parts of the business that
we bought in during 2022, including
Clean Energy Associates LLC ('CEA'),
our market-leading Quality Assurance
provider to the fast-growing solar
energy and energy storage sectors.
We also opened our new Battery
Xcellence Centre in Mestre, Italy, to
meet the battery and energy storage
industry’s increasing need for fast
and reliable testing, assurance and
certification services. And we introduced
our new Electrification Center of
Excellence near Detroit, Michigan, to
support automotive manufacturers with
Science-based TSA services in their
ongoing shift towards electric mobility.
Thirdly, we integrated advanced
PhotonAssay technology into our
Minerals laboratory at Tarkwa, Ghana,
to improve accuracy, safety and
sustainability in gold analysis.
Looking ahead: an amazing
2024 and beyond
There is no doubt in my mind: Intertek
is well positioned to help customers,
regulators and other stakeholders
meet the ever-greater demands
on their sustainability agendas.
Demand from shareholders, employees,
regulators and communities means
corporations are having to continuously
sharpen their focus on safety, quality and
sustainability. The end-to-end solutions
we provide will continue to help them
ensure their products and businesses
are safe and sustainable and are the key
to credibility as demand for ever-greater
transparency continues to grow.
Corporations of all sizes and in every
industry will continue to need the
support and expertise with their
sustainability journeys that Intertek
TSA solutions can deliver. It’s the only
way for them to gain the peace of
mind that comes with knowing they
have in place the right quality, safety
and sustainability standards, 24/7.
Importantly, we will continue to lead by
example by pursuing our Sustainability
Excellence agenda, energising deeply and
genuinely all stakeholders: our people, our
customers, our regulators, our suppliers,
our communities and our shareholders.
Let’s make the world amazing together.
André Lacroix
Chief Executive Officer
ESG credentials
We actively participate in a range of global ESG ratings, indices and
frameworks to benchmark our approach against best practice
and emerging sustainability challenges.
Intertek received a rating of ‘AAA’ in
the MSCI ESG Ratings assessment.1
We were included in the FTSE4Good
Index for the seventh year running.
Intertek is rated 'Prime', fulfilling ISS
ESG's demanding requirements
regarding sustainability performance in
our sector.2
In February 2024, Intertek received an
ESG rating of 18.3 and was assessed
by Sustainalytics to be at low risk of
experiencing material financial impacts
from ESG factors.3
Intertek participates annually in
CDP’s Climate Change Programme.
For 2023, CDP recognised our
progress with a 'B' score.
1. msci.com/notice-and-disclaimer.
2.
issgovernance.com/esg/ratings.
3.
sustainalytics.com/legal-disclaimers.
i
Sustainability Disclosure Index
intertek.com/about/our-responsibility
More information on how
Sustainability is governed at Intertek
can be found within our Directors’
Report on pages 46-47
The 2023 Intertek Sustainability
Disclosure Index is complementary
to our published reports and sets
out how our latest disclosures
map to our own Total
Sustainability Assurance
standards, the Global Reporting
Initiative (‘GRI’) and applicable
Sustainability Accounting
Standards Board (‘SASB’)
requirements.
04
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our approach
Materiality assessment
At Intertek, we recognise the
importance of determining and
prioritising the key sustainability
topics relevant to our business and
our stakeholders.
In 2019, we conducted an independent
materiality assessment to ensure
that views and emerging trends
around Environmental, Social, and
Governance risks and opportunities
are being addressed by Intertek.
While we believe that the material
topics identified in 2019 remain true,
some areas have evolved in terms of
importance to the business and Intertek’s
internal and external stakeholders.
To reflect this, in 2023 we partnered
with a third party to carry out an interim
materiality assessment to ensure that
our sustainability strategy is on course,
and that our previously defined focus
areas continue to align with stakeholders’
expectations. Intertek is committed to
identifying, prioritising and addressing
emerging relevant sustainability issues.
The methodology for the interim
materiality assessment included a review
of Intertek’s existing sustainability
disclosures and initiatives, a peer
and industry benchmarking analysis,
stakeholder analysis, and an analysis
of key reporting frameworks. This
research complemented a small series of
interviews with a selection of external
and internal stakeholders. Priority issues
were assessed from two viewpoints: the
impact of certain issues on Intertek’s
business and the importance of
certain issues for our stakeholders.
Our materiality assessment reaffirmed
that our sustainability strategy is on
track and our previously defined focus
areas remain relevant to both our
business and our stakeholders today.
It is our ambition to carry out
regular materiality assessments
going forward, to ensure we are
identifying evolving areas of priority
or concern for our stakeholders.
Material issues
Our material issues frame our
reporting approach and our
performance against these areas
can be found on pages 07-09.
05
Our approach
Our process and methodology
Review of Intertek's existing materials
Review and analysis of sustainability disclosures, Sustainability Report,
current ratings and related initiatives
Peer and industry analysis
Benchmarking analysis examining sustainability reports, reporting
frameworks and ESG-related efforts of nine companies from the TIC,
compounder and consultancy sectors
Stakeholder analysis
Identification of most relevant stakeholder groups and analysis of key
sustainability-related issues and focus areas
Immersion interviews across the business
15 interviews with key external and internal stakeholders on sustainability
themes, risks, and opportunities that are relevant to Intertek
Analysis of key raters and reporting frameworks
Evaluation of Intertek’s ESG ratings and disclosures across
reporting frameworks
Material sustainability
issues identified and mapped
• Amalgamation of research and analysis findings as well as interview insights.
• Identification, weighting and prioritisation of material issues based on
number of mentions and assigned importance during interviews, industry
best practices and wider stakeholder expectations.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Our approach Continued
Ten TSA Corporate Sustainability standards
Quality & Safety
People & Culture
Communities
Governance
Risk Management
Communications &
Disclosures
Compliance
Financial
Environment
Enterprise Security
To see more on the TSA standards visit intertek.com/sustainability
Total Sustainability
Assurance ('TSA')
standards
The TSA programme is based on ten
corporate sustainability standards that
we believe define a truly sustainable
organisation today.
We believe that these TSA standards are
the most comprehensive sustainability
standards currently available, forming
the foundation of our approach,
challenging us to view our processes and
procedures through this end-to-end lens.
Our ten TSA Corporate Sustainability
standards demonstrate actionable,
comparable, consistent and reliable
disclosures and provide assurance
beyond ESG disclosures. They recognise
that truly sustainable solutions must
address the important operational
aspects of every company, to cover
environment, products, processes,
facilities, assets, systems, corporate
policies and stakeholder engagement.
To embed the requirements of all ten
standards and review our progress, we
carried out a self-assessment for each
standard followed by a gap assessment
audit of our corporate head office and
a selection of operational sites that
are representative of the mix of business
lines and activities within our operations.
The audit team comprised subject matter
experts from our Business Assurance
business line, who benchmarked our
sustainability programmes against
the requirements of each standard.
Performance is benchmarked against
requirements and based on maturity.
On completion of the benchmarking
step the audit team reported their
findings and on the extent to which
corporate sustainability processes
are in place, effective and meeting
the intent of the standard.
The outcomes have further fed
into our ever better approach and
provided valuable insights which will
enable us to align our sustainability
initiatives and priorities further.
06
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Our Sustainability Excellence strategy
Our Sustainability Excellence strategy
People and Culture
Sustainability Excellence in
every area of our operations
Our goal is to have fully
engaged employees
working in a safe
environment.
Our Purpose is bringing quality, safety and
sustainability to life and our Sustainability
Excellence strategy is fundamental to our
business. We ensure we create positive
impacts through the work we do for our
clients and we make progress on our own
sustainability agenda by engaging our
colleagues in our ever better journey.
We do this through implementing
detailed site-by-site action plans,
accurate sustainability performance
measurement and strong governance.
We hold ourselves to account in line with
our own TSA standards, international
best practice, the expectations of our
stakeholders and future regulations.
People and
Culture
Page: 10
Material issues
Progress in 2023
• Diversity, equity and inclusion
• Gender diversity at executive level
Over 2023, we have been focusing on creating initiatives
that engage colleagues with our inclusive culture.
• Diversity of age
• Health & safety
• Learning & development
• Employee engagement
We launched several initiatives designed to benefit and
support our people no matter where in the world.
Initiatives included the Champions engagement programme,
the MOSAIC diversity, equity and inclusion training, '10X
Onboarding' and the launch of iHazard, our health & safety
awareness campaign.
Responsible
Business
Page: 40
Working with
Customers
Page: 18
87
(2022: 80)
Our people bring exceptional technical skills, expertise and
their passion and energy to our business and we will continue
to focus on keeping them safe and engaged, offering them
exciting personal growth opportunities.
2023 ATIC Engagement Score
Priorities in 2024
Communities
Page: 33
Environment
Page: 26
07
Number of leaders who attended
10X Leadership events in 2023
Read more on pages 10–17
180
Link to risks: 1 3 5 7
10
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our Sustainability Excellence strategy Continued
Working with Customers
Environment
Ensure our customers
can operate safely and
sustainably.
Decarbonise our
business by 2050.
Material issues
Progress in 2023
• Innovation in services
• CO2 reduction & targets
• Climate change
We are continuing to engage with requests for carbon
performance assessments to meet the demands of our
customers and track and benchmark our progress.
During 2023, we conducted an average of 5,700 customer
interviews each month, providing deep insights into what our
customers need and want.
Material issues
• Climate change
• CO2 reduction & targets
• Water management
• Waste & recycling
• Hazardous materials
Innovative sustainability services
have been core to our global
business for more than
100 year s
Priorities in 2024
We will continue to provide science-led services and
leading-edge innovations to give our customers the solutions
they need to overcome their own risks and challenges in
quality, safety and sustainability, enabling them to power
ahead with confidence.
Read more on pages 18-25
Operational emission reductions
2022-2023
-1 0 .8%
Operational emission reductions
2019-2023
-36.7%
Progress in 2023
We are continuing to embed our Sustainability Excellence
approach across the business to empower our colleagues
to take ownership of reducing their own carbon footprint.
Our GHG emissions reduction targets were validated by the
Science Based Targets initiative.
Through our GHG emissions performance management
programme, we are continuing to empower regional teams
to implement tangible and measurable initiatives, ensuring
progress towards achieving our reduction targets.
Priorities in 2024
We will continue to focus on minimising environmental
impacts from our operations, in compliance with
regulations, and to live up to the requirements and
expectations of our key stakeholders.
Read more on pages 26-32
Link to risks: 1 2 4 6 7 8 9 10
Link to risks: 1 2 6 9
08
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Our Sustainability Excellence strategy Continued
Communities
Create positive impacts
in the communities
where we operate.
Responsible Business
Uncompromising on quality
and compliance.
Material issues
Progress in 2023
• Community engagement
• Climate change
• Learning & development
Our employees have participated in over 150 community
projects this year with 10,415 hours volunteered to support
community projects.
Community projects in 2023
Priorities in 2024
150+
We are passionate about making a difference and
will continue to take active responsibility to support
the communities and environments where we operate
to create sustainable growth for all.
Material issues
• Human rights
• Supply chain impact
• Anti-bribery & corruption
• Business ethics & credibility
• Cyber security
• Data security & privacy
• Board composition
• ESG governance, policy & reporting
• Tax strategy
• Business continuity
Progress in 2023
We are continuing to develop a best practice compliance
programme to ensure Intertek operates with the highest
standards of compliance and ethical business practices.
We are looking at how we can take steps to choose our
suppliers based on their environmental and climate
performance.
Priorities in 2024
We will continue to develop our best practice compliance
programme to ensure Intertek operates with the highest
standards of compliance and ethical business practices,
including through our supply chain partners.
Read more on pages 33-39
Read more on pages 40-43
Link to risks:
1
9 10
Link to risks: 1 2 3 7 8 9 10
09
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance
globally. Our Group-wide ‘General
Safe Working Guidelines’ provide
the basis for a common and aligned
ES&W standard for all Intertek sites.
This includes a dedicated fire warden,
first aider and ES&W representative at
each location. These representatives
are empowered not only to investigate
incidents and implement preventative
and corrective actions, but also to
disseminate safety information
through training and targeting
continuous improvement.
We firmly believe that to drive
progress, the performance indicators
we track must focus on the diligent
implementation of robust processes
and actions that lead to building a
culture of proactive ES&W awareness.
With dedicated reporting each month for
country and business lines supplemented
by inclusion in the 5x5 analysis for
every site, our global network of ES&W
representatives support continuous
improvement. By improving our ES&W
communication network, we not
only have a known contact person in
each country and location but also
a means of channelling and sharing
information and programmes globally.
Intertek in Action
Champions engagement
programme launch
At Intertek, we are on a good to great
journey to becoming a global icon for
Total Quality Assurance, and we are
supporting our amazing people in that
journey through our exciting new
Champions engagement programme,
launched in September 2023.
Champions is data-science based,
benefitting from the world-leading
workplace science expertise of Gallup,
and includes regular surveys and team
action planning. It is led by line
managers across Intertek, and is
designed to be simple and quick to
implement. We also provided a
Champions video to help our people
understand the process in more detail,
and made a dedicated training
programme available to ensure
colleagues have all the support
they need.
As part of the launch, we each received
a personal invitation from Gallup to take
part in the first Champions Q12 survey,
giving all colleagues the opportunity to
rate statements precisely crafted to
measure employee engagement. Then,
using anonymised reports, our
managers were able to share results
with their teams and plan Champion
actions together. This process will be
repeated regularly, so that our teams
can track their progress and work
together on the actions they have
agreed upon.
The Champions engagement
programme is a hugely important part of
working at Intertek, enabling open and
constructive dialogue within teams to
create 10X purpose led engagement.
People and Culture
Our goal is to have
fully engaged employees
working in a safe
environment
Employee engagement, human rights
and worker health and wellness are
core to the long-term success of our
business. We strive for a sustainable
workforce that is stable, engaged
and committed to the organisation,
our goals and objectives.
We made much progress in 2023,
building upon and launching people-
focused programmes designed to
make the workplace ever better
for everyone at Intertek.
Ensuring the health, safety and
wellbeing of our employees
Through having fully engaged employees
working in a safe environment we will
be able to deliver our Total Quality
Assurance ('TQA') Customer Promise.
We truly value our people
and by embracing diversity,
we strive to build an inclusive
and equitable organisation.
Our success is based on
a culture of trust among
our colleagues across all
our locations.
Intertek people have exceptional
technical skills and expertise together
with passion and energy. As a business
we endeavour to ensure that everyone
feels safe, valued and able to access
exciting personal growth opportunities.
We respect and protect the rights
of our people across operations and
throughout our business relationships.
Our People Strategy is all about
energising our colleagues to take
our Company to new heights.
10
Our aim is to encourage a culture of
proactive Employee Safety and Wellbeing
('ES&W') awareness, industry best
practice and continuous improvement
to increase ES&W performance
Customer Promise
Intertek’s Total Quality Assurance
expertise, delivered consistently with
precision, pace and passion, enabling
our customers to power ahead safely.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Workplace mental health
At Intertek, we consider the health,
safety and wellbeing including the
mental health of our employees, clients
and third parties connected with our
business to be of paramount importance.
In 2023, we continued to raise awareness
for our global wellbeing programme,
Kindness. The programme’s ‘Six Spaces
of Wellbeing’ are available as e-learning
modules from Lucie, our global Learning
Management System. The ten-minute
modules introduce the theory and science
behind each area of wellbeing, providing
tips and suggestions on how to benefit
and improve in that area, exercises and
tools to apply, and information on where
to find out more. Our colleagues can also
access a personal Kindness Journal, to
help focus on their own Wellbeing goals.
Talent attraction,
reward and recognition
We reach out to prospective employees
in a variety of ways, depending on
location and role, in compliance with
local regulations for fair recruitment
practices and equal opportunities. We
post vacancies on our refreshed website
intertek.com/careers and employ various
ways of sourcing talented people.
These include recruitment agencies,
social media, printed advertisements,
employee referrals, professional bodies
and associations, schools, colleges
and universities. We are committed to
recruiting talent local to our operations
where possible. To offer career growth
and progression within the Group, we
seek wherever possible to fill vacancies
from within the business first.
intertek.com/careers
We post vacancies on
our refreshed website
intertek.com/careers
and employ various
ways of sourcing
talented people
We continue to build an open and
trust-based environment that reports
and learns from safety risks and
incidents. During 2023 we have seen
levels of Hazard Observations increase,
reflecting greater levels of activity
across our sites as well as greater
awareness and reporting overall.
The awareness of our employees
to be alert in observing hazards and
near misses and reporting them
immediately was enhanced during the
year through the successful launch
of our iHazard campaign in March.
The health and safety of our employees
and contractors are the utmost priority
at Intertek. All of our businesses have
robust ES&W training programmes
during our induction/on-boarding
process, emergency responses
procedures, intervention and reporting
of Hazard Observations, near misses
and safety incidents. We continue
to provide appropriate personal
protective equipment and continually
expand on existing programmes and
controls to improve the health, safety
and wellbeing of our colleagues.
Our target remains for our TRIR to equal
or be less than 0.5. This target is part
of the next phase of our ES&W cultural
journey and supports our continued aim
to achieve zero lost time incidents.
11
2023
2022
Change
Hazard Observations
25,847
20,992
Near Misses
First Aid
Lost Time Incidents
Medical Treatment Incidents
Fatalities
Total Recordable Incident Rate ('TRIR')
2,912
795
122
101
0
0.51
3,328
789
93
96
0
0.44
23%
(13%)
1%
31%
5%
–
7bps
Intertek in Action
iHazard. See it.
Say it. Share it.
Our aim is to encourage a culture of
proactive health, safety and wellbeing
awareness, industry best practice and
continuous improvement. Intertek is
committed to providing safe working
environments and ensuring that our
colleagues have the information and
resources they need to perform their
duties.
In 2023 we launched iHazard, our global
safety awareness campaign, designed
to ensure that all colleagues are alert in
observing and reporting hazards, near
misses and other incidents immediately.
At Intertek, there are four distinct
types of environments for the work we
do: administration, auditing, inspection
and laboratory. No matter where we
work at Intertek or in which
environment we find ourselves, each
and every one of us has a duty to take
care of our own safety and wellbeing,
and that of others who may be affected
by our actions and omissions at work.
We trust each other to take
responsibility for safety at work,
ensuring it stays hazard-free, 24 hours
a day, seven days a week.
We are constantly improving the way
we monitor our global safety
performance. We know that by
continuously reporting hazards and
near misses, we are better able to take
proactive steps to ensure that potential
hazards and near misses are dealt with
before any incident occurs.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Sharing and celebrating the amazing work we do
‘You’ll be amazed where you find
Intertek’ is our brand campaign, bringing
awareness of the sheer scope of our
amazing people’s expertise and work.
Launched in March 2023, it highlights
the mission critical role that Intertek
plays in areas from pioneering cancer
research to ensuring the safety of
wind turbines and helping to assure
that the fuel inside Air Force One
is fit for flight before take-off.
To energise our colleagues around
the campaign, and ensure we have
the best stories from our global
business to share on our social
channels and inspire our stakeholders,
we created an ongoing monthly
competition to recognise the best
and most engaging stories.
Here is a selection of winning
'You'll be amazed' stories:
In line with our refreshed AAA
differentiated growth strategy,
in March 2023, we introduced
our exciting monthly recognition
programme, ‘AAA Stars’.
AAA Stars is about celebrating
our top performers across our
business lines and regions for their
outstanding achievements across
the following categories: financial
performance, NPS, employee
turnover, Net Zero performance and
employee safety and wellbeing.
Between April and November
2023, we recognised 562 teams
who had achieved between
eight and ten ‘AAA Stars’.
Talent management
To seize the exciting growth
opportunities arising from our TQA
value proposition, we continually
invest in the growth of our people.
We aim to hire, inspire, engage and
retain the best people to power our
AAA differentiated growth strategy,
providing the skills to grow our business.
Read more about our new AAA strategy
in Book one, pages 10-11
With an ever better mindset we
encourage our people to continuously
learn new skills that help advance their
careers and deliver our TQA Customer
Promise. Our 10X talent-planning process
is critical to our future success in
delivering our strategy and fostering our
culture and Values throughout Intertek.
Our Purpose:
To bring quality, safety and
sustainability to life.
Our Vision:
To be the world’s most trusted
partner for Quality Assurance.
Our Values:
• We are a global family that
values diversity.
• We always do the right thing,
with precision, pace and passion.
• We trust each other and have
fun winning together.
• We own and shape our future.
• We create sustainable growth.
For all.
We fully recognise the importance
of employee engagement in driving
sustainable performance for all
stakeholders. In order to measure our
employee engagement, we follow
the Intertek ATIC Engagement Index,
which is based on the key drivers of
sustainable value creation within our
differentiated ATIC business model,
and which measures engagement on a
monthly basis in every operation with the
following metrics: Net Promoter Score
('NPS'), Customer Retention, Quality,
Voluntary Permanent Employee Turnover
and Total Recordable Incident Rate.
Our ATIC Engagement Index score
increased in 2023 with a score of 87
(2022: 80). We believe engagement
levels across the Group are high and
our target is to achieve an Engagement
Index score of 90 moving forward.
During the year, our Voluntary Permanent
Employee Turnover rate averaged
a rate of 12.3% (2022: 14%). As we
progress our People Strategy we will
continue to aim for a rate below 15%.
12
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
New to Lucie – our new 10X
Onboarding programme
In November 2023, we were thrilled to
welcome new joiners for the first time
through our new, global, e-enabled
10X Onboarding experience.
The new programme was designed
to cover the important information
new colleagues need for a successful
career with Intertek, but also to deliver
it in an easy-to-use and engaging way.
10X Onboarding is now live on Lucie,
our bespoke internal global Learning
Management System, and every new
starter is automatically enrolled on this
programme to ensure they feel fully
supported. Even existing colleagues
are invited to take part in the 10X
Onboarding experience, if they feel they
want to get to know a little bit more
about Intertek and our global operations.
10X Onboarding 1.0 is a self-paced
learning experience and includes five
modules that are specifically designed
to provide new starters with valuable
knowledge and tools relating to who
we are, what we do, our culture,
and our resources. It then brings
everything together in the final module
that ensures they are ready for the
exciting challenges ahead of them.
All of these modules are fully accessible;
offering closed captioning and
voice-overs to enhance the learning
experience. Participants collect
stamps in their 'training passport'
as they complete each section,
within each module, on their journey.
Once they collect all the required
stamps, they receive a certificate to
recognise their accomplishment.
The Board as a whole is responsible
for ensuring that appropriate human
resources are in place to achieve
our long-term strategy and deliver
sustainable performance. Global
talent and succession planning for
the Group Executive Committee
are discussed regularly.
In employment-related decisions,
we comply with all applicable
anti-discrimination requirements
in the relevant jurisdictions.
We have zero tolerance for
discrimination and harassment.
Reward and recognition
Reward plays a key role in attracting,
motivating and retaining talent.
Intertek is compliant with minimum
wage and mandatory social
contributions requirements in all
jurisdictions where we operate.
At Intertek, remuneration for all
employees follows the same policy
and principles as for the senior
executives. The Remuneration
Committee has oversight of this. Read
more about this on pages 80-86.
We depend on local management
to define and maintain competitive
compensation practices that appeal
to both existing and future talent.
All employees are remunerated
in accordance with local policies
and guidelines. The remuneration
comprises elements which are fixed,
and in some cases, variable. The
fixed elements are base salary and
benefits including pensions, where
applicable. The variable elements include
incentives, both short and long term.
Across the world, employees who
are eligible for a bonus follow
the same metrics, thus creating
alignment on our strategic goals
throughout the organisation.
Recognition plays an important
part at Intertek, and we take every
opportunity to recognise great
performance across the business
through our internal channels.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Diversity, equity and inclusion
At Intertek, achieving ever better
performance depends on being
constantly open to pioneering new
ideas that enable us to improve what
we do and how we do it. For us, this
means having an organisation that is
truly diverse, equitable and inclusive.
Read more about Board leadership and
diversity on page 69
There are many programmes across
the business, providing in-house and
external learning opportunities. We
recognise the wide range of sectors
we support require different types of
technical training, education and support.
We offer:
• apprenticeships;
• internship programmes;
• college degrees;
• professional qualifications;
• formal and informal workshops and
seminars; and
• coaching.
Intertek in Action
10X Leadership and Coaching
100%
es are offered, as a
of our employe
minimum, yearly discussions on
growth and development.
During 2023, 180 of our leaders took
part in our 10X Leadership programme,
led by our CEO, André Lacroix.
Our in-house 10X Coaching
programme continues to flourish
and we now have 27 fully certified
10X Coaches. Our 10X Coaches are
paired with colleagues to have truly
transformative conversations
that create a culture and
environment where people can
unleash their full potential.
Across all other programmes
our employees engaged with
and completed over 720,000
hours of training.
Skills development
As a provider of quality, safety and
sustainability assurance services,
Intertek relies on a skilled workforce.
We are committed to offering attractive
career development opportunities and
believe in personal growth for every
employee. We know that when each of
us is growing and developing, we move
faster along our good to great journey.
Over the years we have made
great progress with our Leadership
Development agenda as well as
enhancing the tools and applications
available to enable people to grow
and succeed in their careers.
We ensure that all employees receive
adequate coaching, development
and training to be fully competent to
carry out their role. This is supported
by our many Group-wide programmes
including talent planning processes,
the 10X Journey that provides
structure for individual growth
planning, our 10X Energies that help
define winning behaviours and ‘10X
Way!’ training to help address key
development and training needs.
The individual learning journey of
each employee is supported with
diverse learning opportunities that are
continually refined based on business
need, employee feedback, best practices,
trends and new technologies.
14
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Intertek in Action
Intertek in Action
A beautiful MOSAIC,
bringing together a
global family that
values diversity
At Intertek, we believe in the
power of diversity. Diversity of
origin, gender, religion, orientation,
education, experience and of
course, character. At any business,
it is essential to put people at the
heart of the growth strategy to
deliver sustainable value and make a
meaningful contribution to society. It
all starts with diversity, as a business
cannot create magic without it.
By embracing our differences,
working together, and listening to
one another, we can find a better
way not just to do business, but to
live our lives. That’s why we are very
proud to launch MOSAIC, our Diversity,
Equity and Inclusion programme, an
exciting new platform that brings our
people together through practical
workshops and provides them with
a range of valuable resources.
Together, our people are a rich
mosaic of diverse and talented
experts, passionate about building
an amazing world, and committed
to always showing respect and
understanding the needs of
colleagues, customers, suppliers,
shareholders and communities.
We demonstrate that we are an inclusive
and diverse global family by applying
all employment policies and practices
in a way that is informed, fair and
objective. This covers all policies relating
to recruitment, promotion, reward,
working conditions and performance
management. Our Inclusion and
Diversity policy facilitates a culture of
inclusiveness where people are able to
perform at their best, where their views,
opinions and talents are respected,
harnessed and not discriminated against.
We are committed to maintaining
the highest standards of
fairness, respect and safety.
Enhanced paternity
leave in the UK
Always looking to improve our
employee benefits, we announced
an enhanced paternity leave policy in
the UK, effective from 1 November
2023. This new benefit provides
paid leave for fathers taking time off
for a new baby. This gives families
more options on how to spend
time with a newborn child over an
extended period, helping them to
balance caring responsibilities, and
provide greater financial support.
Intertek has a history that goes back
over 130 years, evolving from the
combined growth of a number of
innovative companies from around
the globe. Diversity has always been
at the heart of who we are and will
continue to provide the power behind
our success in the future. With team
members from over 100 countries – all
with different backgrounds, cultures and
beliefs – our diverse workforce makes
us the leading company we are today.
To achieve the optimum mix of skills,
backgrounds and experience, workforce
diversity needs to go beyond discussing
the percentage of women to also
include other diversity indicators. As a
business we want to ensure that we
have the right capabilities to deliver our
strategy. We recognise the value that
individuals of different backgrounds
and capabilities bring to the business.
Our diverse workforce helps us to
understand, communicate and trade
with our vast client base through their
understanding of local issues and
cultures. They add value in assuring our
services are tailored to our customer
needs, which underpins sales growth,
customer retention and satisfaction.
15
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Our overall workforce is 35% female
representation and 65% male
representation. We are increasing our
focus on achieving greater gender
balance at Senior Leader level and
above and have seen improvements
over the past year, particularly at Group
Executive Committee level where female
representation has increased from
10% to 28%. We have also seen small
improvements at Senior Leader level
(from 21% to 24%). More detail on the
gender diversity of our Board as well
as Ethnic diversity disclosures for the
Board and Group Executive Committee
can be found in the Nomination
Committee report on page 69.
Intertek TQA Expert by level
Intertek in Action
Group Executive
Committee
Senior Leader1
Male
Female
13
181
5
56
Whole organisation 28,499
15,409
1. Direct reports to the Group Executive Committee.
Intertek TQA Expert by region
Americas
Asia
Male
Female
8,272
3,251
12,313
8,582
EMEA (incl Central)
7,914
3,576
Menopause support in the UK
In August, some 20 colleagues from
the UK Hardlines/Softlines business
came together for the first meeting
of the UK Menopause Network. Set
up to provide support and education
for anyone going through the various
stages of menopause, the network also
offers useful information for those not
currently affected, who want to know
what to expect or how they can help
colleagues, partners, family or friends.
With a British Menopause Society
survey finding that 45% of women
feel menopausal symptoms have a
negative impact on their work – and
25% consider leaving their job –
this is an issue that needs serious
consideration. Our Menopause
Network is a good starting point,
helping to build a supportive culture.
Intertek in Action
‘She Power’ week in China
At Intertek China, International
Women’s Day prompted a week of
events, demonstrating the value
we place on our female employees.
These included the She’s Amazing
contest, which selects outstanding
women across our businesses in China,
recognising their achievements and
presenting them as role models. We also
ran a series of training programmes
specifically for women and launched
a video featuring female colleagues
and their experiences at Intertek.
Gender diversity
We are determined to
develop and retain more
women in senior roles.
Our goals
Improving gender balance is critical for
us. We continue to focus on gender
diversity by attracting, developing
and retaining more talented women,
particularly at senior levels.
We continue to pursue our goal to
increase the number of women in senior
management roles to 30% by 2025.
Metrics and performance
35%
of our global TQA Experts
are women.
We ensure that men and women are
paid equally for doing equivalent roles
and we are committed to a number
of measures to ensure we provide an
energising workplace, free of any gender
bias, where employees can flourish
based on their talent and effort.
To strengthen this, we ensure that our
shortlists of external hire candidates
have a balance of gender diversity.
We remain committed to equality
and provide flexible working where
possible and provide mentorship
to women to address the gap in
gender numbers at senior levels.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Accessible product design
Our UK Electrical team has developed a
new service offering to help electrical
product manufacturers assess and
improve the accessibility of their
products. With 16% of the global
population estimated to be living with
a disability or impairment, inaccessible
product design has a huge impact
on consumers. Our aim is to help
manufacturers develop next-generation
products that are truly inclusive in their
design, functionality and usability.
Intertek in Action
Accessibility training for marketing teams
In May 2023, the global marketing team
took part in training that provided
guidance on ensuring Intertek's
marketing and communications are
inclusive and accessible to all.
The session focused on the best ways
to make content accessible, for example
including alt text on imagery, ideal
colour contrasts for design, closed
captions for videos, as well as other
useful tips for marketeers to implement.
Cultural diversity
(arising from country of origin)
Cultural diversity supports
our global business and is key
to our success.
Our goals
We are committed to cultural diversity
and will ensure that Intertek’s colleagues
are representative of the countries where
we do business.
Metrics and performance
45
different nationalities across
our senior leadership.
We recognise that comprehensive
diversity monitoring is foundational to
our diversity and inclusion strategy,
which lies at the heart of our culture. We
continue to monitor protected
characteristics and to promote further
transparency, particularly at senior level,
we have plans to update our diversity
monitoring.
In addition to cultural diversity arising
from country of origin, we have plans to
enhance our reporting on ethnicity.
Read more about the diversity
of our Board on page 69
Talent across
all generations
We value all of our colleagues,
regardless of age, and have
practices in place to develop
and retain workers of all ages.
Our goals
We will continue to develop
proactive approaches to recruitment
to ensure we have an age-diverse and
balanced employee age profile.
Metrics and performance
58%
of our global TQA Experts are under
the age of 40.
The technical expertise needed in many
parts of our complex business is acquired
over several years. This is reflected
in the overall average age of 39.
We will continue to promote
and endorse fair, consistent and
thoughtful working practices that
are in accordance with our Values.
At Intertek, we are proud to be an
equal opportunities employer.
We consider all qualified applicants
for employment regardless
of gender, ethnicity, religion,
orientation, age, disabilities and
other protected characteristics.
Disability
inclusion
Adopting a universal
design mindset.
Our goals
To adopt a disability inclusive
mindset as well as deliver on our
commitment to the Valuable 500.
This is centred around incorporating
disability inclusion criteria into the full
spectrum of products and services
we offer our clients.
Metrics and performance
We believe that in order to create
rapid, system-level change specific
to disability inclusion and equity, we
must actively seek out opportunities to
collaborate with other businesses who
hold the same values and are equally
committed to affecting change.
We also recognise the gaps in the global
business community's knowledge
of employees with disabilities and
are supportive of the call for greater
visibility of the current state of affairs.
We are assessing the guidance recently
published by the Valuable 500 on self-
identification and will look to implement
these learnings into our approach.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Working with Customers
We ensure our customers can
operate safely and sustainably
in a complex world
Innovative sustainability
services have been core to
our global business for more
than 100 years.
Through our leading-edge innovations
and integrated ATIC solutions, we are
uniquely placed to help our customers
understand, achieve and validate their
existing and emerging sustainability
goals.
Capturing the right
data to optimise operations
Identifying and managing risks that
can impact our service quality is key
to ensuring customer satisfaction.
Our 5x5 metrics tool and processes
enable the collection and review
of performance metrics across the
areas of sales, customers, people,
finance and operational excellence
that are fundamental to disciplined
performance management.
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The 5x5 metrics provide every Intertek
site and team leader with 360º insight
into their business to guide their
decision making and ultimately lead
to superior business performance.
Customer focus
To become the most trusted partner
for Quality Assurance, we have made a
promise to our customers: Intertek TQA
expertise, delivered consistently with
precision, pace and passion, enabling
our customers to power ahead safely.
Intertek has a strong focus on customers,
at all levels of the organisation, and our
customer relationship management
is integrated into our approach
through a key account management
structure and dedicated sales teams.
Our Marketing & Sales Operations team
works closely with business lines and
country leadership to drive continued
improvements across marketing, sales
and digital tools to ensure that every
aspect of customer engagement aligns
with our TQA Customer Promise.
Customer Promise
Intertek’s Total Quality
Assurance expertise, delivered
consistently with precision,
pace and passion, enabling
our customers to power
ahead safely.
Listening to our customers
Since 2015, we have used the NPS
process to listen to our customers. These
insights give us a deep understanding of
what our customers need and want,
fuelling our innovations. Our customer
interviews keep us laser-focused on
delivering an ‘ever better’ service. During
2023, we conducted an average of 5,700
interviews each month.
Average NPS interviews per month
5 ,70 0
Accelerating positive
sustainability impact
We recognise the importance of sharing
our own sustainability journey with our
customer, partners and local communities.
We actively engage with requests to
support individual sustainability and
carbon performance assessments,
including EcoVadis and the CDP
Climate Change questionnaire.
This gives us the opportunity not
just to meet the demands of our
investors and customers, but also
uncover risks and opportunities and
track and benchmark our progress.
We aim to collaborate as a trusted supply
chain partner to deliver improvements
in the areas most material over the
long term and accelerate sustainability
impacts. We are here to help our
stakeholders understand sustainability,
why it matters, and how to effectively
integrate it within business.
Channels of customer
interactions
Customer meetings
Emails and phone calls
Web enquiry responses
Workshops and seminars
Social media
communications
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Supporting our
customers with their
sustainability agendas
Intertek in Action
Intertek in Action
Providing EDGE certification for a
multinational financial services company
Synthetic fuels that will power the
engines of the future
As a Total Quality Assurance
provider, we are in a strong position,
given our global scale and expertise
to support the sustainability goals of
our customers with our industry-
leading Total Sustainability
Assurance solutions.
Intertek is helping a multinational
financial services company to
demonstrate its commitment to
diversity, equity and inclusion
('DEI') across 71 locations around
the world by helping it renew its
EDGE Assess certification.
EDGE ('Economic Dividends for
Gender Equality') is the foremost
global standard focusing on gender
and intersectional equity in the
workplace. It provides a comprehensive
framework that enables companies to
demonstrate their commitment to DEI
with authenticity and credibility to all
stakeholders, including employees.
The company initially achieved
its EDGE Assess certification for
gender equality in early 2022,
encompassing nearly 80% of its global
workforce and 68 distinct entities.
This certification was a significant
milestone in its DEI journey.
The Intertek Business Assurance team
in Italy has been actively collaborating
with the company to renew this
certification. As an authorised third-
party certification body by EDGE, we
deployed a team of 20 specialists to
conduct thorough audits at various
facilities belonging to the company
during October and November
2023. This process underscores our
commitment to promoting gender
equality and supporting organisations
in their continuous efforts towards a
more equitable and inclusive workplace.
Intertek in Action
New website launched
The redesigned Intertek.com is higher
energy and more immersive for a best in
class customer experience, giving visitors
fast insight into the Science-based
Expertise behind our unique, industry-
leading ATIC solutions.
Visit: intertek.com
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We have formed a strategic and
commercial partnership with Zero
Petroleum, the pioneering energy
company developing groundbreaking
synthetic fuels for a fossil-free future.
Zero® synthetic fuels, which are
made from just air and water, are
a breakthrough in the transition
towards cleaner energy sources.
These advanced fuels, backed by
Formula One legend Damon Hill OBE,
have been designed to be used as
direct replacements for traditional
petroleum-based fuels in various
applications, including transportation,
aviation and agriculture.
This collaboration enables Intertek
to contribute to the evolution and
certification of Zero Petroleum's
synthetic fuels. These efuels are
compatible with existing engine
designs, offering a direct replacement
solution. They hold the potential to
bring substantial benefits to industries
and consumers alike, bolstering energy
independence and aiding the journey
towards a carbon-neutral future.
Intertek's cutting-edge laboratories
and specialised facilities will be
instrumental in analysing the fuel's
composition, emissions and compliance
with rigorous industry standards
and regulatory requirements.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Intertek in Action
Intertek in Action
Intertek in Action
An innovative approach to reducing
energy consumption
Supporting Nestlé to fulfil its
sustainability pledges
and nitrogen gas for sample
preparation and drug analysis.
We expect this collaborative leap
forward will lead to a 15% reduction
in both companies' annual energy
consumption, demonstrating our
commitment to better environmental
stewardship and the progress we can
make in the pharmaceutical industry.
Our cutting-edge Good Manufacturing
Practices ('GMP') pharmaceutical
laboratory in Reinach, Switzerland,
has forged a transformative
partnership that will revolutionise our
approach to liquid nitrogen usage.
Working with a neighbouring
technology company, our GMP
pharmaceutical laboratory in
Reinach is replacing energy-
intensive liquid nitrogen generators
with an innovative tank system.
Together, we are enhancing
sustainability while preserving the
essential role of liquid nitrogen
We also support Nestlé with its CARE
initiative, which is the company's
Corporate Compliance Assessment
Program. This programme covers a
wide range of areas, including human
resources, safety, health, environment,
business integrity and security. A
key focus of our collaboration is
environmental sustainability, which
is crucial for Nestlé as it strives to
meet its sustainability commitments.
We are collaborating with Nestlé to
certify 153 of its sites under the ISO
14001 standard, a move that spans
15 certificates and has a strong
presence in North America, Europe and
the Asia, Oceania and Africa zone.
The ISO 14001 standard plays a
critical role in effectively managing
environmental aspects and complying
with regulatory requirements. Through
this certification process, we are
making a significant contribution
to Nestlé's sustainability efforts,
enabling the company to integrate
sustainability practices into its
core business processes and
daily operations seamlessly.
Intertek in Action
Developing an open-access genetic
fingerprinting database for coffee
The Intertek AgriTech team is at the
forefront of a transformative project in
the coffee industry, collaborating with
World Coffee Research ('WCR'), a leading
non-profit organisation dedicated to
fostering a sustainable future for coffee.
This partnership focuses on developing
an open-access database that houses
essential genetic information about
Arabica coffee, a resource poised
to revolutionise the sector.
This initiative is designed to empower
coffee farmers globally by providing
easy access to vital genetic data. The
collaboration has seen our AgriTech
experts working closely with WCR
to offer extensive training in sample
collection methods, conduct DNA
extraction and provide genotyping
services. Additionally, we have been
instrumental in offering consistent
technical support, aiding WCR in building
this comprehensive genetic
fingerprinting database.
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Collaborating on
Nespresso's innovative
coffee capsule recycling
programme
For several years Nespresso and
Intertek have collaborated to oversee
and verify Nespresso’s unique
capsule recycling programme.
During the recycling process, the
capsules are shredded to separate the
coffee grounds from the aluminium.
The aluminium is then recycled, while
the coffee grounds are repurposed into
biogas and soil improver, contributing
to environmental sustainability.
Coffee enthusiasts have multiple
convenient options for recycling their
Nespresso capsules. These include
returning used capsules to designated
collection points, dropping them off
at Nespresso boutiques, or utilising
Nespresso’s innovative Recycling@Home
service. This comprehensive recycling
programme underscores Nespresso's
commitment to environmental
responsibility and Intertek's role
in ensuring the effectiveness and
integrity of sustainable practices.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Assisting diverse businesses with
Total Quality Assurance
Micro, small, and medium-sized
enterprises (‘SMEs’) play a crucial role
in the global economy, accounting for
more than 90% of all businesses and
approximately 70% of jobs worldwide.
At Intertek, we are dedicated to
assisting businesses of all sizes and
sectors in achieving Total Quality
Assurance. Our ATIC services focus on
enhancing safety and sustainability.
A notable example of our support
for small businesses is our work with
Piglets Pantry. This small enterprise
has been awarded the BRCGS
START! certification, a recognition
aimed at smaller sites to foster the
development of comprehensive food
safety systems. This certification
has enabled Piglets Pantry to
demonstrate exemplary food safety
standards and maintain robust
traceability in its supply chain, which
helps it deliver its homemade bakery
delights to homes across the UK.
Illuminating the path
towards a brighter,
more sustainable
future
Solar trackers are innovative devices
that optimise panel positioning by
following the sun’s path, maximising
energy output and reducing costs.
product, offering insights that have
fuelled further collaborative efforts
to minimise the environmental
footprint of its solar trackers.
Intertek in Action
Developing educational resources for
increased ESG ambitions
When a global solar tracker manufacturer
wanted to solidify its commitment to
disclosing its environmental impacts,
it partnered with our Intertek Assuris
Sustainability team. Our tailored
approach helped the company
develop a comprehensive Life Cycle
Assessment study and Environmental
Product Declaration for its trackers.
This has allowed the manufacturer
to assess the entire life cycle of its
This partnership is a testament to our
joint commitment to sustainability.
As the world embraces renewable
solutions as part of the energy
transition, Intertek illuminates
the path towards a brighter, more
sustainable future where solar
power takes centre stage.
Intertek in Malaysia has developed a
comprehensive suite of courses for a
semi-government professional training
institute in Sarawak as the country
amps up its environmental, social
and governance ('ESG') ambitions.
The courses, designed to get local
professionals up to speed on the
different ESG and greenhouse gas
('GHG') standards and requirements,
were based on various industry and
country-specific standards, including
the Global Reporting Initiative ('GRI')
and the International Organization for
Standardization. They cover topics such
as risk management, supply chain risks,
accounting and reporting, sustainability
reporting, carbon neutrality and net zero.
The knowledge gained from these
courses will empower companies and
the local workforce to meet upcoming
ESG reporting standards and carbon
pricing regulations in a world where
transparency and accountability are
becoming increasingly important.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Supporting
CarbonLeap in fuel
switch and carbon
intensity reduction
Intertek is playing a pivotal role in
supporting CarbonLeap's initiative to
reduce CO2 emissions, providing
expert witness, measurement and
verification services for fuel blending.
This collaboration is crucial in ensuring
the precision and effectiveness of
CarbonLeap's CO2 savings initiatives.
CarbonLeap, a Dutch project, focuses
on accelerating the market for
voluntary CO2 reductions, particularly
through biofuel blending in marine
and heavy road transport sectors in
the Netherlands. The initiative is
designed to assist cargo owners and
their clients in decarbonising their
supply chains through a unique
product named Carbon Insets.
Intertek's role involves meticulously
witnessing, measuring and verifying
the blending processes and carbon
intensity of fuels used in marine and
road transportation. Our
comprehensive team comprises
specialists from Intertek Caleb Brett,
Intertek Lintec and carbon footprint
experts from the Intertek CarbonClear
certification group. With such a
diverse and global team of
professionals, we are exceptionally
equipped to support companies in
achieving their net zero ambitions,
making significant strides in
environmental sustainability.
Intertek in Action
Helping sports manufacturers
make better decisions
Lowering environmental impact while
maintaining the top performance
consumers demand from their
sports gear is becoming increasingly
important for manufacturers.
Intertek’s impact can be seen across
many of the world’s favourite sports.
We are on the tennis court, golf course,
baseball diamond, basketball court
and soccer field, helping our sporting
goods clients stay ahead of the game
when it comes to understanding
the environmental impacts of
the gear they make and sell.
The Sustainability team at Intertek
Assuris helps manufacturers make
material and process decisions that make
tennis balls, football kits or baseball
gloves even better. Our Green Product
Development (R&D) Assurance Solution
empowers consumers to make more
informed decisions when they buy
their gear, as our clients confidently
communicate the environmental
impact of their products. Meanwhile,
our integrated approach ensures the
sustainability, quality, safety and
performance attributes of a product
are optimised from conception all the
way through the product's life cycle.
Intertek in Action
Intertek-PSI: helping to build sustainable,
forward-looking infrastructure
Since late 2020, Professional Service
Industries, Inc. (Intertek-PSI) has
supported the Gordie Howe
International Bridge project’s U.S. Port
of Entry and I-75 interchange
components in Detroit, Michigan.
The Gordie Howe International Bridge
is a cable-stayed bridge, currently
under construction, across the Detroit
River. A dedicated on-site laboratory,
set up specifically for this project, has
been crucial to ensuring that our
Materials Quality Assurance ('QA') and
Quality Control ('QC') inspection and
testing services can meet the demands
of the project’s tight schedule.
Intertek-PSI's involvement in the
project aligns perfectly with our
sustainability ethos of prioritising
social, environmental and economic
responsibility in building and
construction. Our role in supporting
quality, design and material selections
for durability and resilience are integral
to the project’s overall sustainability
efforts, ensuring that the materials and
construction methods used contribute
to the project's long-term environmental
and community benefits.The bridge is
slated to open in autumn 2025.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Intertek in Action
Intertek in Action
Delivering Environmental Assurance
Services in Irish Offshore Waters
The assessments provide an operational
baseline for exploration companies
to assess their proposed activities,
ensuring the protection of the marine
environment. As part of the process, our
team supported the DECC in engaging
with environmental stakeholders and
members of the public to ensure that key
environmental and social considerations
were fully integrated into the Plan.
Intertek completed a Strategic
Environmental Assessment ('SEA') and
an Appropriate Assessment ('AA') for the
Department of the Environment, Climate
and Communications ('DECC') in Ireland.
These assessments were of the newly
adopted ‘Plan for assessment of
applications for Petroleum Exploration
and Production Authorisations in
Irish Offshore Waters for the Period
to 2030’. We conducted a screening
exercise to identify the environmental
impacts of the exploration activities
to fulfil the requirements for SEA
and AA, both of which are necessary
under European legislation.
Preparing for Ireland’s Wave Energy Converter Project
Intertek has successfully completed
the management of two years
of marine megafauna and bird
surveys on behalf of Saoirse Wave
Energy Ltd, a joint venture between
Simply Blue Group and ESB.
well as delivering the surveys over the
two-year period, we have also been
responsible for processing and quality
assurance of the bird and marine
megafauna data, including habitat
modelling analysis and species mapping.
Ahead of the proposed Wave Energy
Converter ('WEC') Project on the west
coast of Ireland, we have organised
aerial site surveys and terrestrial
landfall surveys to quantify the bird,
marine mammal and other marine
megafauna populations that are using
the site. This data will contribute to
the ecological impact assessment. As
When developed, the Saoirse project
will be the first array-scale wave energy
conversion test and demonstration
project in Ireland and the largest in
the world. It has been designed to
prove the viability of WEC technology
through long-term deployment in the
harsh, energetic conditions of the North
Atlantic. Wave energy has long been
recognised as a tremendous potential
renewable energy resource, allowing for
the balance of grid demand while also
enabling the transition from fossil fuel
energy production. The Saoirse project
will allow Ireland to be among the first
commercial users of this new clean
energy resource, helping the country
achieve its net zero goals by 2050.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Intertek in Action
Using quantification data for baseline reduction
management of methane emissions
Resolving safety concerns and keeping people
safe at solar installations
Intertek has worked closely with a
major European energy company on
executing the collection of methane
emission quantification data using
drones and other methods.
While the reduction of greenhouse gas
emissions focuses heavily on CO2, there
is growing awareness that methane is
80 times more potent in its first 20
years in the atmosphere. So, reducing
methane emissions can have a much
greater and immediate effect on
managing climate change.
Data is required to baseline and more
accurately determine the current
emission levels, then to measure the
progress in management and reduction
of those emissions. Intertek has strong
expertise in this area having executed
numerous methane data acquisition
missions and is accredited under MiQ –
the fastest growing and most trusted
methane emissions certification
standard – to independently certify
natural gas extraction and production
facilities (onshore and offshore), with
transparent data-led grading allowing
higher and lower emissions gas to be
identified across the supply chain.
Helping to restore
soil fertility for chilli
farmers in India
Intertek India’s Food Lab in Hyderabad
has been helping chilli farmers involved in
backward integration projects, a practice
which sees businesses take greater
control over the earlier stages of their
supply chains. We have supported
farmers in the Vajedu, Cherla and
Bhadrachalam areas in and around
Telangana state through integrated
pesticide management. We help to test
their soil, water and pesticides for quality
and suitability before crop cultivation.
The soil is tested for fertility and the
pesticides for purity and adulteration to
ensure that the cultivated soil is
sustainable for coming generations.
These sustainable practices are enabling
the farmers to grow good quality
products for export to the rest of the
world.
Intertek Clean Energy Associates
('CEA') audits rooftop solar
installations, identifying significant
risks and providing safe and effective
solutions.
Intertek CEA has identified a variety of
problems at solar installations around
the world, noting that because most
are caused by poor installation
practices, many can be resolved
relatively easily before they lead to
fires, safety risks and potentially costly
liabilities.
Our audit of more than 600 commercial
rooftop solar systems in over 12
countries found that nearly all, 97%,
had 'major' safety concerns. The
leading concerns were related to
grounding issues, damaged modules,
cross-mated connectors and poor
terminations. All of these factors could
lead to dire consequences, with
hazardous equipment or current
leakage leading to increased
maintenance requirements and
significant system downtime from
short circuits or inverter faults. But
more importantly, they could also
endanger on-site personnel and
significantly disrupt the businesses
operating under the rooftop systems,
so any risk identified must be
remediated urgently.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Intertek in Action
Supporting ocean
cleaner InResST®
in creating
environmentally
friendly fabrics
Intertek has conducted accounting
and verification of InResST®'s
manufacturing process for raw
material processing, transportation,
production and the packaging of two
products.
InResST® is a low-carbon,
environmentally friendly innovative
materials company. It focuses on the
feasibility research, development,
production and promotion of the use
of discarded fishing nets in textiles,
clothing and other daily products. All
InResST® products are derived from
abandoned nylon fishing nets
following deep-sea fishing activities.
Intertek works to ensure the
sustainability of InResST®'s green
products, providing downstream
brand customers with credible
environmental impact data reports on
the company, which supports their
protection of the marine environment.
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Certifying Huafu’s
product carbon footprint
Wastewater analysis and monitoring to
support Peru’s fishing industry
The fishing industry is a vital source of
food and employment in many parts of
the world, but it faces significant
environmental challenges due to
pollution from the wastewater it
produces. If not managed properly, this
pollution can affect soil and the air;
however, the main concern is usually
the return of contaminated effluents
– liquid waste or sewage – to rivers and
the sea.
Peru is a leader in the production of
fishmeal and fish oil and, within Latin
America, one of the main exporters of
fish products for people to eat. Intertek
Peru's wastewater analysis and
monitoring services allows fishing
companies to ensure that the industry
continues to provide an essential
source of food with minimal
environmental impact.
With our support, clients can verify
compliance with their environmental
commitments, detect any changes in
water bodies caused by processing
activity and take corrective action.
Intertek Peru's services are carried out
in accordance with the relevant
regulations; evaluate critical factors
such as the concentration of
suspended solids, oils and greases, as
well as the presence of potentially
harmful micro-organisms; and include
many other chemical and biological
tests. This detailed analysis helps our
clients implement more sustainable and
responsible practices, a key step
towards more environmentally friendly
fishing.
Global textile leader Huafu has been
awarded Intertek's Product Carbon
Footprint certification for ten
consecutive years, validating its
commitment to sustainable product
development.
Huafu's dyed yarn, produced using a
pre-dyeing and blending process in which
some fibres are dyed before being
blended with raw fibres, offers significant
advantages in terms of water
conservation and pollution reduction.
Compared to the traditional process of
dyeing yarn after spinning, this innovative
approach saves more than 60% of the
water used and reduces wastewater by
over 60%.
This provides notable benefits in energy
efficiency, emission reduction and
environmental preservation, as
demonstrated by Intertek’s Product
Carbon Footprint certification. Before
making the award, we always conduct a
comprehensive end-to-end assessment
of the greenhouse gas emissions for
Huafu's cotton and cotton/modal dyed
yarns. We have consistently found that
Huafu's dyed yarns outperform traditional
dyed yarns in terms of environmental
benefits.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Environment
Our goal is to decarbonise
our business by 2050
At Intertek, we understand
our organisation’s impacts
on the environment and
continuously look for
opportunities to mitigate
them in regard to climate
change, use of resources,
ecosystems, and waste
management.
We recognise the critical role that the
private sector plays in tackling the
climate crisis, providing innovative
solutions, reducing GHG emissions
and setting ambitious targets.
Thereby helping to drive the transition
to a low-carbon economy.
Governance
Intertek’s environmental governance
flows from the Board to every site.
CEO, Group CFO, EVP – Sustainability,
Group Company Secretary, Head of
Finance Sustainability, and Group Head
of Risk) works with our countries on our
detailed climate-related investments
and action plans, monitors site-level
activities across a range of metrics
and tracks progress against the
GHG emissions reduction targets.
Our Environmental and Climate Change
policy (available on our website at
intertek.com/about/our-responsibility)
outlines the commitments we adhere
to. Our operations apply a precautionary
approach and comply with all applicable
environmental regulations and permits.
Environmental management systems
support our operations to meet
environmental protection standards,
comply with legislation and improve
reporting and transparency. We
have implemented ISO 14001 and/
or ISO 45001 across 98 of our sites.
To advocate for accelerated climate
action, our Net Zero Steering Committee
(whose members include our Group
More information on climate-
related Governance can be
found in Book one, page 60.
What is our impact?
Our global reach spans thousands
of employees, clients, and suppliers.
This scale represents both commercial
opportunity as well as a responsibility
to our people, the communities in which
we operate and the wider environment.
As a multinational company, we
recognise that, although our own
operations may not be as energy
intensive or resource depleting as
other industries, good management
of the relevant and material topics is
critical to protect the environment.
Our activities around the world are
diversified across both laboratories
and offices. Carbon emissions are our
biggest environmental impact, and
through continual monitoring and
assessment of our operations, we
are now able to apply more targeted
actions on the reduction of our carbon
footprint, with particular focus on energy
efficiencies and operational excellence.
The energy we use in our laboratories
and offices continues to be the
largest contributor to our carbon
footprint, making it a priority in
our environmental agenda.
To make real change happen, we
believe that all our people need
to have ownership of their carbon
footprint and be empowered and
inspired to take ambitious actions to
reduce it – putting our Sustainability
Excellence approach into action.
We continue to advance our
understanding of climate-related
risks and opportunities and to
evolve our transparent reporting, in
line with internationally accepted
recommendations of the Financial
Stability Board’s Task Force on Climate-
related Financial Disclosures ('TCFD')
as shown in Book one, page 58.
26
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Our GHG emissions reduction journey
Key milestones:
Achieved
On track
Intertek has a longstanding commitment to
sustainable growth, continuously demonstrating our
efforts to limit the effects of climate change as a
member of the Race to Zero campaign.
On our journey to net zero emissions by 2050, we
have established a robust emissions data collection
process, improved our carbon footprint measurement,
showcased proficiency in environmental reporting,
and set ambitious reduction targets. We remain
committed to identifying and implementing
decarbonisation initiatives.
Decarbonisation initiatives
Our rigorous GHG emissions performance
management programme empowers our regional
teams to implement initiatives to deliver against
their reduction targets.
Leveraging our monthly environmental dashboards
at business line, country, and site level, we identify
those activities under our operational control which
contribute towards our environmental footprint and
work with our teams to focus on concrete and
measurable action plans.
SBTi validated near-term targets
In 2023, we had our GHG emissions reduction targets
approved by the Science Based Target initiative
('SBTi') which are in line with the ambition to limit
global temperature increases to 1.5°C above
pre-industrial levels.
Supply chain
Our commitment to environmental sustainability
extends beyond our internal operations to encompass
our supply chain network.
We are engaging with our suppliers to ensure that
their environmental priorities are aligned with ours.
By working together, we can create a more
sustainable future for generations to come whilst
simultaneously driving value creation and innovation
within our business.
27
9
1
0
2
Baseline for
GHG emissions
reduction targets
SBTi validated
near-term targets
3
2
0
2
"Intertek Group plc commits to reduce absolute scope
1 and 2 GHG emissions 50% by 2030 from a 2019
base year. Intertek Group plc also commits to reduce
absolute scope 3 GHG emissions from business travel
and employee commuting 50% within the same
timeframe. Intertek Group plc further commits that
70% of its suppliers by spend covering purchased
goods and services, capital goods and upstream
transportation and distribution, will have science-
based targets by 2027."
0
3
0
2
Target: Reduce absolute
scope 1, 2 and 3
(business travel and
employee commuting)
emissions 50% vs 2019
baseline
Joined
1
2
0
2
Business
Ambition
for 1.5°C
campaign
2
2
0
2
ESG
element
included
in annual
incentive
framework
7
2
0
2
Target: 70% of suppliers
by spend to set
science-based targets
0
5
0
2
Net zero ambition
and commitment.
Prioritise direct
emissions reductions
and neutralise any
remaining emissions
Climate-related focus areas:
Scope
1
Scope
2
Direct emissions from sources which Intertek
owns or controls:
Indirect emissions from purchased
electricity, heat and steam:
Scope
3
Value chain emissions:
• Switch to lower-carbon vehicle fleet
• Identify and implement fleet efficiencies
• Optimisation of buildings
(heating/cooling)
• Procurement from renewable sources
• Low-carbon energy generation
• Energy-efficient buildings
• Energy-efficient equipment
• Optimise business travel
• Employee engagement on efficient
ways of commuting
• Supplier sustainability engagement
Across all scopes: Awareness and training for employees, customers and suppliers on climate change
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Our climate transition plan in action
Low-carbon fleet: We are moving
to upgrade our fleet to low-emissions
vehicles. This year we completed a pilot
programme in several countries which
allowed us to better understand our
operational and business needs, as
well as the challenges in the existing
infrastructure. We will continue to
transition our other eligible fleet.
Germany
Netherlands
UK
USA
Low-carbon
energy generation:
We are producing and consuming
our own electricity after investing
in renewable energy systems in at
least one site in eight countries.
Energy purchased from
renewable sources:
At least one site in these countries
is now powered by 100% renewable
electricity backed by Energy
Attribute Certificates ('EAC').
Employee-efficient
transportation initiatives:
We have invested in electric-vehicle
('EV') chargers in several countries
with the intention to support
a low-energy transition.
Australia
China
Germany
India
Mexico
Netherlands
UK
Australia
China
Germany
Indonesia
Netherlands
Norway
South Korea
Singapore
Spain
Thailand
Türkiye
USA
Vietnam
Australia
Bangladesh
India
Mexico
Poland
South Korea
Sweden
UK
Energy-efficient buildings
and equipment: We have replaced
incandescent lighting with LEDs,
installed motion sensors, introduced air-
conditioning policies and replaced old lab
equipment with more efficient options.
APAC region
Bangladesh
China
India
UK
Intertek in Action
Generating our own
clean electricity
As we take important steps to
decarbonise our business, our Intertek
Mexico City laboratory has become
the latest of our global sites to install
a solar photovoltaic ('PV') system.
The impressive system will generate
over 60% of the site’s electricity
from renewable energy sources,
creating an annual emissions saving
equivalent to the carbon absorbed
by more than 8,000 trees.
Mexico becomes the eighth country in
which we are producing and consuming
our own electricity, following Australia,
Bangladesh, India, Poland, South Korea,
Sweden and the UK, where we also have
site-specific solar installations. We are
continually looking to increase this
number by assessing the potential for
and impact of installing other solar PV
systems at various sites around
the world.
28
28
Intertek Group plc
Annual Report & Accounts 2023
Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
GHG emissions in tonnes of carbon dioxide equivalent (tCO2e)¹
Emissions by source2
Scope 1
Emissions from sources which Intertek
owns or controls directly
Scope 2
Emissions from purchased electricity, heat
and steam for our use (location-based)
2023
2022
Base year
2019
Global
61,168
58,821
64,709
of which UK
1,782
2,302
Global
113,270
113,823
128,693
of which UK
2,295
2,325
55.5
emissions1 in tCO2e per £m
in revenue2,3
Operational emission reductions
2022–2023
-1 0 .8%
Emissions from purchased electricity, heat
and steam for our use (market-based)
Global
78,228
102,066
133,860
of which UK
285
531
Operational emission reductions
2019–2023
Scope 3
Employee Business Travel
Global
18,108
12,555
25,849
Employee Commuting
Fuel – and Energy-Related Activities
Not Included in Scope 1 or Scope 2
of which UK
1,260
813
Global
of which UK
Global
of which UK
27, 108
33,590
67, 101
1,036
6,543
201
1,351
7, 0 69
213
7, 669
Absolute tCO2e (market-based)
Global
191,155
214,101
299,188
1. Refer to ur Basis of Reporting document for full details of scope. Available on our website at intertek.com/about/our-responsibility.
2. Our annual environmental reporting cycle ran from 1 October 2022 to 30 September 2023.
-36.7%
Global energy use in megawatt-hours (MWh)
Energy use by source1
Standard electricity, heat and steam
Renewable electricity2
Mobile combustion3
Stationary combustion4
Total energy use5
Percentage of total energy use from renewable sources
2023
2022
171,241
224,347
88,716
42,979
139,715
131,229
122,020
115,037
521,692
513,592
17.0%
8.4%
1. Energy use disclosures now include all energy sources from mobile and stationary combustion. 2022 data was restated to allow for year-on-year comparison.
2. Renewable electricity at site level is consumed from green tariffs, Energy Attribute Certificates ('EAC') and solar PV generation.
3. Energy from the fleet.
4. Gas and fuels used for heating and in testing.
5. UK portion of total energy use was 4% (2022: 5%).
1. Operational market-based emissions
as defined in Book one, page 29.
2. Revenue for FY 2023 as shown in
Book one, page 8.
3. 2022: 64.8 emissions in tCO2e per £m in revenue.
Environmental
performance
At Intertek, we are committed to
providing accurate and transparent
environmental data. Intertek’s reporting
complies with the methodologies
outlined by the GHG Protocol ‘Corporate
Accounting and Reporting Standard’,
ISO 140064-1 and the UK Government’s
‘Environmental Reporting Guidelines’.
Our data collection process continues
to improve, with over 120 users adding
site-level data every month to our global
environmental sustainability software.
In 2023, operational market-based
emissions1 were 184,612 tCO2e (2022:
207,032 tCO2e), down 10.8%. We
delivered 36.7% reduction against our
base year (2019: 291,519 tCO2e).
We have a rigorous performance
management programme of climate-
related action plans which has
helped us identify the most material
sources of emissions and implement
initiatives which result in year-
on-year emissions reductions.
We will continue to increase the amount
of energy consumed from renewable
sources, and will address our business
travel practices as we are seeing an
increase in emissions driven by the
recovery of the transportation industry
following the impacts of the pandemic.
29
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Independent assurance
report to Intertek Group
plc Management
Scope
We have been engaged by Intertek Group
plc (“Intertek”) to perform a ‘limited
assurance engagement,’ as defined by
International Standards on Assurance
Engagements, here after referred to as
the "engagement”, to report on selected
greenhouse gas performance data (the
“Subject Matter”) contained in Intertek’s
Annual Report & Accounts 2023 as of
30 September 2023 (the “Report”).
The Subject Matter comprises
the following data sets in the
Report regarding the sustainability
performance of Intertek Group plc:
• Greenhouse gas emissions – scope 1;
• Greenhouse gas emissions – scope
2 – location-based and market-based;
• Greenhouse gas emissions – scope
3 (fuel and energy related activities;
business travel (air travel only);
and employee commuting); and
• Greenhouse gas emissions
– intensity ratio.
Other than as described in the preceding
paragraph, which sets out the scope of
our engagement, we did not perform
assurance procedures on the remaining
information included in the Report,
and accordingly, we do not express
a conclusion on this information.
30
Criteria applied by Intertek
In preparing the Subject Matter, Intertek
applied the methodology as described
in the document Basis of Reporting –
GHG Emissions (the “Criteria”), based
upon the GHG Protocol, and publicly
available on Intertek’s website.
Intertek’s responsibilities
Intertek’s management is responsible for
selecting the Criteria, and for presenting
the Subject Matter in accordance with
that Criteria, in all material respects. This
responsibility includes establishing and
maintaining internal controls, maintaining
adequate records and making estimates
that are relevant to the preparation
of the Subject Matter, such that it
is free from material misstatement,
whether due to fraud or error.
EY’s responsibilities
Our responsibility is to express a
conclusion on the presentation of
the Subject Matter based on the
evidence we have obtained.
We conducted our engagement in
accordance with the International
Standard for Assurance Engagements
Other Than Audits or Reviews of
Historical Financial Information ("ISAE
3000 (Revised)"), and the terms of
reference for this engagement as agreed
with Intertek Group plc on 3 October
2023. This standard requires that we
plan and perform our engagement to
express a conclusion on whether we
are aware of any material modifications
that need to be made to the Subject
Matter in order for it to be in accordance
with the Criteria, and to issue a report.
The nature, timing, and extent of the
procedures selected depend on our
judgement, including an assessment
of the risk of material misstatement,
whether due to fraud or error.
We believe that the evidence obtained
is sufficient and appropriate to provide a
basis for our limited assurance conclusions.
Our independence and
quality management
We have maintained our independence
and confirm that we have met the
requirements of the Code of Ethics
for Professional Accountants issued
by the International Ethics Standards
Board for Accountants, and have the
required competencies and experience
to conduct this assurance engagement.
EY also applies International Standard
on Quality Control Management 1,
Quality Management for Firms that
Perform Audits or Reviews of Financial
Statements, or Other Assurance or
Related Services engagements, which
requires that we design, implement and
operate a system of quality management
including policies or procedures regarding
compliance with ethical requirements,
professional standards and applicable
legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited
assurance engagement vary in nature
and timing from and are less in extent
than for a reasonable assurance
engagement. Consequently, the level of
assurance obtained in a limited assurance
engagement is substantially lower than
the assurance that would have been
obtained had a reasonable assurance
engagement been performed. Our
procedures were designed to obtain a
limited level of assurance on which to
base our conclusion and do not provide
all the evidence that would be required to
provide a reasonable level of assurance.
Although we considered the
effectiveness of management’s internal
controls when determining the nature
and extent of our procedures, our
assurance engagement was not designed
to provide assurance on internal controls.
Our procedures did not include testing
controls or performing procedures
relating to checking aggregation or
calculation of data within IT systems.
• Testing the accuracy of data
aggregation performed at the Intertek
global level for reporting purposes -
including the use of any specific tools,
systems, or estimation methods.
• Examining the Report for the
appropriate presentation of
the Subject Matter, including
limitations and assumptions.
A limited assurance engagement
consists of making enquiries, primarily
of persons responsible for preparing the
Subject Matter and related information,
and applying analytical and other
appropriate procedures. The procedures
we performed were based on our
professional judgement and included:
• Conducting interviews with
relevant staff to understand the
processes for collecting, collating
and reporting the Subject Matter
during the reporting period.
• Reading key documentation and
confirming our understanding of the
key risks to data integrity and the
controls associated with the collection
and collation of the GHG data.
• Performing analytical review
procedures to understand the
appropriateness of the data.
• Testing, on a sample basis, against
underlying source information to
check the accuracy and completeness
of the data and the appropriate
application of the Criteria.
• Examined the reasonability of estimates
and assumptions applied to the data,
and ensuring they are aligned to
what is documented in the Criteria.
We also performed such other
procedures as we considered
necessary in the circumstances.
Conclusion
Based on our procedures and the
evidence obtained, we are not aware of
any material modifications that should
be made to the Subject Matter as at
30 September 2023, in order for it to
be in accordance with the Criteria.
Use of our Assurance Statement
We disclaim any assumption of
responsibility for any reliance on this
assurance report or its conclusions
to any persons other than Intertek
Group plc, or for any purpose other
than that for which it was prepared.
Accordingly, we accept no liability
whatsoever, whether in contract, tort
or otherwise, to any third party for any
consequences of the use or misuse of
this assurance report or its conclusions.
Ernst & Young LLP
4 March 2024
London
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Improving water management practices in Bangladesh
PETman champions recycling
and charitable giving
In its continued pursuit of water
conservation, the Intertek Bangladesh
team has taken some important
steps to greatly reduce wastewater.
An upgraded Effluent Treatment
Plant ('ETP') has revolutionised water
management at our Dhaka laboratory
site, recycling 20,000 litres each
day. Previously, the ETP only treated
laboratory water and the wastewater
was discharged into the drain.
Following the upgrade, we now recycle
laboratory wastewater through the ETP,
storing the treated water and using it for
gardening and toilet flushing. Our new
ETP achieves Zero Liquid Discharge –
meaning that no industrial wastewater
remains at the end of the treatment cycle
– a step beyond government regulations.
of storing up to 1,000 litres of
rainwater, significantly reducing
our dependence on groundwater.
Approximately 9,000 litres of water
can be used from the WTP during
the country’s annual rainy season.
Additionally, we introduced a rainwater
harvesting system, incorporating a
Water Treatment Plant ('WTP') atop
our laboratory building. This system
features a reservoir tank capable
20,000
litres of water reused daily
Our Netherlands offices have
welcomed a new team member:
the PETman. Designed to add a
bit of fun to the daily routine of
disposing of empty plastic bottles
and cans, the PETman is a recycling
bin in the guise of a giant yellow
Intertek-branded PET bottle.
PETman also helps raise money for
good causes. Each PETman can hold
around 250 bottles and cans, and
when full we can expect a return of
around €40, which Intertek doubles
and donates to charities chosen
by our colleagues. We therefore
encourage employees to bring
their bottles or cans from home to
ensure that every PETman reaches
capacity as often as possible.
31
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Green initiatives for World Environment Day
Inspiring families and local communities
On 5 June each year, World
Environment Day is a reminder that
even the smallest steps towards
sustainability can have a significant
impact. At Intertek, we see this event
as another opportunity to reinforce our
commitment to Build Back Ever Better
– and our offices around the world
have different ways of doing this.
Planting in Bangladesh
We extended our South Asia planting
initiative to Dhaka, Bangladesh,
where our local team devised a clever
solution for a lack of space. Wanting
to plant saplings, they asked two
customers – Plummy Fashions Ltd
and Crony Apparels Ltd – who readily
offered land. In a crowded megacity
like Dhaka, the lack of space can
make building a green future very
difficult, but this project demonstrates
what teamwork can achieve.
The population density can also be
an obstacle to introducing greenery
at home or in the workplace. To
help our employees overcome
this, we organised a discussion
and demonstration called Urban
Gardening: Bringing Nature Indoors.
Reusing, repurposing
and recycling in India
In the week leading up to World
Environment Day, we held collection
drives for old or surplus clothing and
stationery across some of our Indian
sites, including Delhi, Gurugram,
Bengaluru and Tirupur. We did this in
association with various local non-
governmental organisations, distributing
the collected items to be reused or
repurposed for people in need.
Tackling plastic pollution in Ghana
Our teams in Ghana embraced the
2023 theme of 'Beat Plastic Pollution'.
Our employees joined forces
with a local company along with
Solution Oriented Youth Africa, a
group pioneering sanitation and
climate change, and the Students
Representative Council of the local
University of Professional Studies
for a clean-up project at Laboma
Beach, Accra. In addition to picking up
plastic waste, the group, numbering
more than 50, talked to local people,
explaining the need to keep the beach
clean and conserve our environment.
In addition to the physical actions we
take, our global teams work hard to
educate their local communities and
families, especially the next generation,
on caring for the environment.
Throughout 2023, they did this
by hosting engaging initiatives to
encourage environmentally friendly
practices around the world.
Reforestation in Guatemala
Our Intertek Guatemala team launched
the Plant A Tree With Us initiative to
promote reforestation. The initiative
saw colleagues and their families
travel to a deforestation recovery area
outside Guatemala City to plant trees,
learning the best method and building
vital knowledge on the importance of
reforestation. The idea is to motivate
employees and their families – from
the youngest to the oldest – to raise
awareness of the significance and
urgency of maintaining the global
forests which provide us with so many
ecological, economic and social benefits.
Getting creative in Vietnam
In August, over 120 children of our
employees at Intertek Vietnam
enjoyed our Mission Possible: Earth
Ranger event, organised as part of our
broader We Care, Earth Cares initiative
in the Asia Pacific region. The event
welcomed families from several of our
offices, including Hanoi, Ho Chi Minh
and Can Tho, and a range of activities
followed, including creative contests,
art workshops, and making flags and
lanterns from recycled materials, as
well as an Intertek laboratory tour.
Building a knowledge
network in Hong Kong
To celebrate Green Day 2023, over
1,400 employees and their families
enhanced existing environmental
measures by sharing green tips
and promoting environmental
initiatives and responsibilities.
1,400+
employees and their families
celebrated Green Day 2023 in
Hong Kong
32
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Communities
We want to create positive
impacts in the communities
where we operate
Each of our countries and business
lines define their own agenda to create
positive and lasting impact. These are
tied to the Group’s priorities and aligned
to the UN Sustainable Development
Goals and focus on their local operations
and communities. Our Beyond Net
Zero Steering Committee oversees
community investments at a global level.
In this section we provide a small
selection of highlights from the many
community activities that our colleagues
are taking part in around the world.
Our global business spans
more than 100 countries and,
as such, we understand the
huge opportunity and
responsibility we have to
make a positive and lasting
impact on our local
communities where we work.
Taking active responsibility to support
the communities where we operate
is grounded in our Values to create
sustainable growth. For all.
As a business we contribute to our
communities in many ways. We provide
employment opportunities, volunteer,
fund education programmes and
support charities to benefit local
communities and neighbourhoods.
33
150+
mployees
Community projects our e
participated in focusing on
education, giving back to local
communities and preserving our
environment
10 , 415
hours volunteered to supp
community projects
ort
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Intertek in Action
Intertek in Action
Supporting community initiatives
in the Netherlands
WE CARE: leave no one behind
At the end of every year, our employees
at Intertek Polychemlab in Geleen,
Netherlands, nominate a charity to
support. For 2023, they chose Flower
for Charity, which organises various
activities for those in need at a local
cabin. Supported by a team of volunteers,
the activities include children’s birthday
parties and a warm, friendly café service
for Ukrainian refugees and others in need.
In February, the Intertek Polychemlab
team donated an impressive €6,500
to the charity. The money was raised
through collection boxes and employees
purchasing annual leave hours and days
for an equivalent value donation.
In 2023, our WE CARE initiative
transcended borders, leaving smiles
and hope in its wake. We brought joy
and support to more elderly people in
two countries, Malaysia and Singapore,
while investing in the future by
nurturing young minds in Thailand.
Our reach extends beyond smiles
and support for the elderly though.
In Thailand, we donated educational
toys to a children's home, laying the
foundations for a brighter future. We
believe that every individual, regardless
of age, deserves a chance to thrive.
Intertek Malaysia started the initiative
in 2022, committing to clean a care
home for elderly people each quarter.
With the initiative continuing to thrive
in Malaysia, we took it to neighbouring
Singapore, where colleagues have
volunteered at a local care home
to offer manicures and haircuts, as
well as organising entertainment.
Our actions in 2023 are a testament
that WE CARE is more than a slogan.
It is a commitment – a promise
to help make the Sustainable
Development Goals and pledge to
'leave no one behind' a reality.
34
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Raising community awareness of recycling
Solar-powered street lights for rural Gurugram
During a two-day event on the island of
Langkawi in August, Intertek Malaysia
joined the Malaysian Recycling Alliance
in promoting its Consumer Education
and Public Awareness programme. The
aim was to educate the local community
on the importance of recycling
and other sustainable practices,
giving them the knowledge to make
responsible choices in their daily lives.
An enthusiastic audience took
part in various activities, such as
children’s colouring contests, guessing
games for the weight of recyclable
items and competitions based on
separating different types of waste.
As well as increasing awareness
of recycling, the event contributed
to the future preservation of the
island’s natural habitat by encouraging
greener habits generally.
As part of our Lighting Up Lives
project in India, carried out with local
charity Deep Welfare Organisation, we
installed solar-powered street lights in
five villages in Gurugram. Although the
villages have access to electricity, they
generally do not have street lights, so
this initiative will improve safety and
quality of life for local people, as well as
promoting solar power as a sustainable
way of reducing light poverty.
The project was expected to benefit
over 30,000 people and, in an area
where livestock accidents after
dark are common, also contribute
to animal safety. However, we
exceeded our projected outreach by
providing benefits to around 36,000
people across the five villages.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Intertek in Action
Giving back to local communities
in the US and Canada
During our Season of Giving, our North American teams
gave back to their local communities in a variety of ways.
Their efforts helped to change many lives for the better
and to strengthen their local communities, all in the spirit
of Build Back Ever Better.
36
Sustainability performance Continued
Our offices and labs worked with national
organisations like Toys for Tots and
the Red Cross, as well as local charities
supporting a wide range of causes – such
as those experiencing homelessness
and economic hardship, those living
with mental health conditions, victims
of domestic violence, foster children,
the elderly and abandoned pets.
In Farmers Branch, Texas, our
Professional Service Industries ('PSI')
team collected donations for the Humane
Society of North Texas, providing
food and supplies for the animals the
organisation cares for. Our PSI team
in Orlando, Florida, collected items for
Second Harvest Food Bank, Toys for
Tots and the Orlando Women’s Shelter.
In Lowell, Massachusetts, our Business
Assurance team supported the local
Salvation Army’s Annual Holiday Toy
Drive by donating clothes and gifts for
children in need. The team also spent
an afternoon helping to distribute the
donations to more than 100 families,
joining the Salvation Army’s mission
to bring joy back into the season.
Meanwhile, in Mississauga, Canada, our
Assuris colleagues hosted a holiday
get-together and fundraiser in support of
the Canadian Mental Health Association.
The team raised $1,000 (CAD) during
the event and made a total donation
of $1,600 (CAD) with additional money
it had raised throughout the year.
After its recent office move, the Intertek
Catalyst team in Waterloo, Canada,
got straight into supporting its new
community by raising funds for a local
Turkey Drive. The team’s donation of
$430 (CAD) was combined with other
contributions to provide a meal for
14,500 local people in need. Similarly,
our Hazloc team in Edmonton, Canada,
collected money for the Hope Mission,
which serves up Christmas dinner for
hundreds of disadvantaged and homeless
people in Edmonton and Calgary each year.
Our Transportation Technologies team
in Kentwood, Michigan, donated gifts to
two community service organisations:
Be A Santa for a Senior, supporting
the elderly, and Mel Trotter Ministries,
helping the homeless. In Texas, our
Plano team donated blood through
Carter Blood Care and our colleagues
in Westlake joined forces with the
Houston Police Department to host a
toy drive, collecting for children in need.
In Bozeman, Montana, our Wisetail
team took part in several initiatives,
including a blood drive for the local Red
Cross and fundraising for two local
causes: Big Sky Youth Empowerment,
which supports vulnerable teenagers,
and the Compassion Project, which
works in schools and communities
to promote lifelong skills for
relationships and wellbeing.
In addition to coordinated office
efforts, employees also took part in
the Season of Giving challenge by
personally supporting their favourite
causes across North America.
Intertek in Action
Help for victims
of the Türkiye-Syria
earthquake
Following the devastating
earthquakes in Türkiye and Syria in
February, we did all we could to
support our colleagues and local
communities in the region, especially
those directly affected by the
disaster.
In the immediate aftermath, we
coordinated rapid support for
employees who had been displaced,
helping them to find alternative
accommodation and providing any
basic items they needed. In the wider
community, we arranged for local
volunteers to manage donations of
items in the highest demand, including
sanitary pads and children’s clothing.
Our local Health & Safety Supervisor,
trained in emergency response,
travelled to the most affected region
to help maximise the impact of these
rapid response efforts.
Our Caleb Brett joint venture in
Türkiye – ITS Caleb Brett Deniz
Survey SA – also independently
arranged for trucks to provide key
items for those in need, as well as
turning our laboratory in Iskenderun
into an aid station.
In addition to the on-the-ground
support, Intertek Europe & Central
Asia set up a fundraising page for the
Disaster Emergency Committee’s
Türkiye-Syria Earthquake appeal,
through which employees around the
world donated more than £6,500.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Delivering social and economic development
through India’s textiles industry
Intertek expanded a skills development
project aimed at providing training and
employment opportunities for young
people in India’s textiles industry with
the opening of new training centres
in Gurugram and Bengaluru in 2023.
This initiative started in 2022, when we
launched the first Textile Technology
Training ('T3') Centre in Tirupur, Tamil
Nadu, the heart of the South India textile
belt and one of Asia’s biggest knitwear
export hubs. The T3 Centre provides
socioeconomically disadvantaged
young people, mostly women, with
free access to certified courses for
future lab technicians, chemists,
merchandisers and customer executives.
Working in partnership with Reviving
Green Revolution Cell, a Tata Trusts
initiative, we have trained 264 young
people and placed 177 into employment
in Tirupur. With the opening of new T3
Centres in Gurugram, northern India, and
Bengaluru, south India, we are looking
to train over 400 more by early 2025.
India has a growing youth population, and
unemployment due to a widening skills
gap in the labour force is an issue faced
by many. The T3 programme is working to
change the lives of not only the trainees,
but also successive generations, helping
to lift entire communities out of economic
hardship and creating a virtuous cycle of
growth, stability and better quality of life.
Improving access to
healthcare in rural India
During a visit to India in October, André
Lacroix, our CEO, and Tony George,
our Executive Vice President Human
Resources, officially opened Arogya, a
new mobile health unit ('MHU') in Tirupur,
Tamil Nadu. The unit offers preventive
and curative healthcare to more than
35,000 people across 20 villages,
including remote and inaccessible areas
where basic healthcare is often limited.
Arogya MHU has been fully equipped
with the general outpatient services,
equipment and medicines needed for
early diagnosis and effective patient
management. The unit is designed to
offer inclusive and affordable healthcare
in addition to a reliable doctor-patient
follow-up system, ensuring timely
treatment for those in need. It will also
serve to enhance local awareness of best
practices around health and hygiene, with
the aim of combating the prevalence of
diseases and other ailments in the region.
The unit offers preventive and
curative healthcare to more than
35,000
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Sustainability performance Continued
Intertek in Action
Intertek in Action
Intertek in Action
New learning centre
opened for children
in Zululand
In July, lntertek South Africa opened
a learning centre in the Zululand
district. The centre serves as a pre-
primary classroom during the day
and a study room for high school
children in the afternoon, with
learning materials provided for
English, mathematics and science.
In the planning for more than two
years, the learning centre was
funded by lntertek South Africa and
lntertek Germany. We partnered with
a small local business to supply the
infrastructure and design of the
classroom with the necessary amenities.
The initiative was executed through
lntertek South Africa's longstanding
beneficiary Bevies Care Centre, which
we have been proudly associated
with since the early 2000s. Before
the learning centre was built, we
supported Bevies Care Centre with
upgrades and refurbishments to its own
premises, as well as hamper donations
to support underprivileged children.
Responding to
emerging needs
during winter freeze
in Bangladesh
At the start of 2023, the northern
region of Bangladesh experienced an
incredibly cold winter which was
affecting day-to-day life for many
people. In response, a team of
volunteers from Intertek Bangladesh
helped to procure 350 blankets for
donation. The team then travelled
around 80km from Dhaka to the
remote Shariatpur district, where
weather conditions were particularly
harsh. The blankets were then
handed out to the beneficiaries of
five charitable organisations, ranging
from an orphanage to the National
Federation of the Visually Impaired.
38
Climbing mountains
and crossing countries
Two of our UK-based teams decided to
take on big physical challenges to raise
money for charities of their choice.
Our Energy & Water team travelled from
the south of England to northwestern
Wales to climb Snowdon, which, with an
elevation of 1,085 metres above sea
level, is the highest point in the British
Isles outside the Scottish Highlands.
On a hot day, the team completed
the challenge in eight hours and
raised more than £1,000 for
WaterAid, an international non-
governmental organisation focused
on water, sanitation and hygiene.
The UK HR team took a different
approach, challenging its members to
collectively to cover the distance from
Land's End at the far end of southwest
England, to John O’Groats on the
northernmost coast of Scotland. The
team successfully covered the 1,743km
distance in three months, raising £1,000
for the Alzheimer's Society, a UK charity
supporting people with dementia and
funding research into the condition.
raised for WaterAid in 2023
£1,000
£1,000
raised for the Alzheimer's society
in 2023
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Intertek in Action
Intertek in Action
Intertek in Action
Long-term education programme benefits
disadvantaged young people in Shanghai
For the past 16 years, Intertek China
has provided funding to support
the education of young people from
low-income families in Chongming,
Shanghai. The student aid programme
gives those from challenging
backgrounds the opportunity to
complete their education, from
primary school to university.
In addition to the financial
contribution, the Intertek China
team stays in contact with the
young people through one-on-one
mentoring and online support groups.
In the summer of 2023, the team
also delivered books and stationery
to Chongming, as well as arranging
a visit to Shanghai Insect Museum.
As of the end of 2023, we have
supported more than 40 students,
with over 20 of them now graduated
and working, including students
who have become teachers and
those studying for degrees in
important fields like medicine.
We recently extended our support
of the programme for another five
years, ensuring that our current
students will continue to benefit
from access to quality education.
16
years funding education
in Chongming
39
Collaborating with
universities for
education reform
In 2023, Intertek China took
another significant step in
its work with universities to
promote education reform and
train future industry talent.
As part of the school-enterprise
cooperation with the School of
Materials and Environmental
Engineering of Shenzhen
Polytechnic University, Intertek was
invited as a testing industry expert
to participate in a curriculum reform
teaching seminar. This involved
designing new practical courses for
the university to help develop more
application-oriented talent, as well
as implementing a way of teaching
which centres on the cultivation of
vocational abilities. In addition, an
Intertek expert delivered lectures
about the third-party testing
industry to more than 300 students.
This important collaboration will
not only help to improve the quality
of teaching at the university,
but also lays a solid foundation
for the delivery of skilled talent
into the testing industry.
Encouraging
more girls into STEM
For the fourth year in a row,
Intertek Sweden invited a group
of girls to see our Electrical and
Transportation Technologies
laboratory in Kista, Stockholm. The
visit was part of the countrywide
Introduce a Girl to Engineering Day,
which aims to encourage more
young girls and non-binary people
to consider careers in science,
technology, engineering and maths
('STEM').
The 20 attendees, all with a
specific interest in engineering,
were given tours of several of our
testing laboratories and met some
of our female engineers to learn
more about their work and career
journeys. They also got to see some
tests in action and ask questions
about the world of engineering.
Having hosted the event virtually
for the last few years, we were
especially pleased to welcome
the girls in person once again.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Responsible Business
We are uncompromising
on quality and compliance
To deliver long-term
sustainable success we strive
for the highest standards of
corporate governance,
conduct and integrity.
Through our entrepreneurial culture
and Values, we strive to make the world
better, safer and more sustainable.
Our responsible business practices –
protecting human rights, 'Doing Business
the Right Way', ensuring data privacy
and good information governance and
operating sustainable procurement
practices – underpin our focus areas
and the commitments we have made.
Human rights
Respecting human rights is core to
everything we do and is supported
through our Labour and Human Rights
policy, Code of Ethics and Sustainable
Procurement policy. Intertek’s policies
and codes are based on and fully respect
the International Bill of Human Rights and
the International Labour Organization’s
Declaration on Fundamental Principles
and Rights at Work and the UNICEF
Children’s Rights and Business Principles.
We are committed to ensuring that
our employees are subject to fair
working practices and are treated
with respect. We continually review
our approach in this area to reflect any
legal developments, emerging issues
and changing societal expectations.
Some of the ways in which we
work to promote human rights
within our business include:
• Working conditions: We comply with
all applicable labour and human rights
laws and industry standards on
working hours, paid annual vacation,
rest periods and statutory minimum
wages.
• Indigenous rights: We respect the
rights of indigenous people. Our goal is
to support our leaders, our people and
our communities to develop respectful
relationships and create meaningful
opportunities for dialogue with
indigenous people, where appropriate.
• Forced labour: We do not tolerate any
form of forced labour, child labour,
slavery, human trafficking, physical
punishment or other abuse within our
business or our supply chain.
• Our Modern Slavery Act Statement
outlines the steps we are taking
internally, in our supply chain and
through partnerships and advocacy to
avert modern slavery and human
trafficking. This is available on our
website.
• Child labour: We do not employ people
below the age of 15 or below the local
minimum employment/mandatory
school age – whichever is higher and
relevant to the particular country.
Where we provide apprenticeships for
young people, we put special
protections in place and ensure they
are not exposed to hazardous work.
• Collective bargaining: We respect the
rights of our employees to form and
join trade unions and take part in
collective bargaining where this is as
per local law. We also take care that
employee representatives do not suffer
discrimination and that they have open
access to members in the workplace.
We strictly adhere to tariff structures
and arrangements negotiated with
trade unions, while we also inform and
consult employees on relevant
business activities. For example, we
respect statutory minimum notice
periods and give reasonable notice of
any significant operational changes in
line with local practices and labour
markets. Our affiliates’ communication
and consultation processes are tailored
to local needs.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
'Doing Business the Right Way'
We continue to develop a best
practice compliance programme to
ensure Intertek operates with the
highest standards of compliance and
ethical business practices, including
through our supply chain partners.
We are committed to maintaining the
total confidence of our stakeholders.
One of the Group’s primary business
objectives is to help our customers
meet quality standards for virtually any
market in the world and protect them
against risk by ensuring compliance with
local, national and international laws.
The accuracy and validity of reports
and certificates that we provide are,
therefore, important factors which
contribute to our success and integral
to this work is ‘Doing Business the
Right Way’, our internal risk, control,
compliance and quality programme.
Our compliance programme is designed to:
• give our people the processes, tools
and training they need to ensure a safe
and inclusive environment;
• support the delivery of our services and
the performance of our contracts with
integrity and in line with our
commitment to Total Quality;
• obtain the commitment of every
colleague to the highest standards of
professional conduct; and
• deliver sustainable growth by
managing our risks and doing the right
thing for the longer term.
Public policy
We interact with trade associations and
governmental authorities to provide input
into industry and regulatory improvements
in product safety, quality and risk
assurance. In our interactions with
governments, governmental authorities
and regulators we ensure that we comply
fully with all laws and regulations.
Ethics, integrity and
professional conduct
Our commitment to the highest
standards of integrity and professional
ethics is embedded in the Group’s culture
through the principles set out in our
Code of Ethics (‘Code’). The Code sets a
clear expectation that people working
for our business must act at all times
with integrity and in an open, honest,
ethical and socially responsible manner.
The Code also covers health and
safety, anti-bribery, anti-competitive
practices, labour and human rights.
The Board, as a whole, oversees the
implementation of human rights
commitments and supports human
rights as defined in the Code.
We have a culture in which all issues
relevant to our professional conduct
and the Code can be raised and
discussed openly without recrimination.
We operate a strict zero-tolerance
policy regarding any breach of our
Code and any behaviour that fails
to meet our expected standards.
To support the implementation of
our Code in our day-to-day business
activities, all people working for, or
on behalf of, Intertek are required to
sign the Code upon joining the Group
or before commencing work on our
behalf. This confirms their acceptance
of the high standards expected of
them in all business dealings.
Intertek employees or people acting
on Intertek’s behalf are responsible for
applying the Code in their own job role,
their part of the business and location.
Every year, to support the continuing
understanding in this area, all our
people are required to complete our
Code of Ethics training course. This
training covers the Code and other
important subjects relating to ‘Doing
Business the Right Way’, such as data
security and operational controls. Once
completed, all employees are required
to sign a document confirming their
understanding that any breaches
of the Code will result in disciplinary
action that may include summary
dismissal of the employee concerned.
Our Code of Ethics training educates
all employees annually about
potential integrity issues, including
human rights, bribery, corruption,
non-discrimination and employee
relations. The Code of Ethics contains
clear guidance on the grievance
mechanisms and whistleblowing
procedures that we have in place.
10 0%
We aim for 100% completion rates
for eligible employees for our Code
of Ethics training on an annual basis.
Intertek in Action
Modern slavery training
In 2023 we used our in-house
expertise from our Business
Assurance team to run live training
across global time zones during
which we trained over 100 of our
colleagues in compliance, legal, HR,
finance operations, and our business
operations. This training was designed
to not only cover the issue of modern
slavery and Intertek’s obligations in
this area, but also how to spot risk
indicators for modern slavery, what to
do to mitigate modern slavery risk and
who to report concerns to. The training
is now available to our colleagues
as an 'on demand' training video.
Through this training we refreshed
our commitment on a global scale to
fighting modern slavery, whenever
and however we can. We also ensured
that our people had the knowledge
and the tools they needed to
understand how to take action.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Sustainability performance Continued
Evaluation of suppliers
Our corporate procedures govern
our purchasing and evaluation of
vendors and sub-contractors supplying
Intertek with goods and services.
Approval and evaluation may
be based on quality, health and
safety, environmental performance
and delivery. Performance is also
measured, recorded and benchmarked
against established objectives as
part of our disciplined performance
management principles, supported by
our Quality Management System.
Going forward we will be looking
at the environmental attributes of
different procurement categories and
investigating if we can already take steps
to choose our suppliers based on their
environmental and climate performance.
Visit: intertek.com/about/
our-responsibility for our Sustainable
Procurement policy
Whistleblowing hotline
To empower our people and stakeholders
to voice any concerns about breaches
of the Code or any of our other policies
(including our Labour and Human Rights
policy and Modern Slavery policy), we
have a well-publicised hotline which can
be used by all employees, contractors and
others representing Intertek, or by third
parties such as our customers or people
who are affected by our operations.
This whistleblowing hotline is run by
an independent, external provider. It
is multi-language and is accessible by
phone and by email 24 hours a day.
Those who are aware of any non-
compliances with our policies and
procedures are encouraged to report
that conduct, non-compliance, or
integrity or ethical concern using
the hotline. Information posters
are present in all of our sites.
Once a report is made to the hotline,
it is triaged through the system and
will be followed up by the relevant
function, depending upon the nature
of the allegation of non-compliance
made. Our Group Compliance function,
which is independent of our operational
businesses and reports directly to our
Group General Counsel, investigates, as
appropriate, all reports received relating
to integrity issues and other compliance
matters. Provided there is no conflict
of interest, all reports of integrity and
compliance matters are also notified
to our Group Risk Ethics & Compliance
Committees, which consist of our CEO,
CFO, EVP for HR and Group General
Counsel. This reporting line promotes
effective oversight of the resolution
both of individual issues and of any
systemic or process improvements
that can be made to address them.
During 2023, 106 reports of non-
compliance with the Code were made
to our hotline. Of those reports,
39 were substantiated or partially
substantiated and required remedial
action. Of those substantiated claims:
• there were no substantiated
grievances relating to human rights,
labour practices or societal impact
breaches;
• there were no environmental incidents;
• there were no anti-trust incidents;
• there were no violations of the rights
of indigenous people; and
• there were no cases of discrimination.
Two confirmed incidents were identified
through our hotline where employees
were disciplined or dismissed due to
non-compliance with our anti-corruption
policy.
Sustainable procurement
We are deeply committed to operating
with integrity by ‘Doing Business the
Right Way’ and to pursuing our corporate
social responsibility activities through
living our strong Values. Our suppliers
have an important part to play in
contributing to our sustainability.
Our sourcing approach
We work with thousands of suppliers
around the world. We expect all suppliers
to meet the same internationally
recognised human rights, environmental
and quality standards that we
expect of our own businesses. These
include meeting local legislative
requirements but also applicable
international requirements for
workers’ welfare and conditions of
employment, such as those set by the
International Labour Organization (‘ILO’)
and the Ethical Trading Initiative.
Large global suppliers offer stability in
terms of financial resilience, delivery
capacity and pricing structures,
potentially coupled with better pricing
and improved margins. However,
our supply chain is quite diverse and
geographically dispersed, and our
procurement teams need to find regional
and local suppliers. Through structured
sourcing processes, we select the
best option for us while continuing to
support local suppliers that meet our
business and sustainability requirements.
Selecting regional and local suppliers,
where appropriate, demonstrates
our commitment to supporting the
communities in which we operate.
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Intertek in Action
Identify
Protect
Data
protection
Our
risk-based
security
framework
Detect
Recover
Respond
Data protection
We believe that all our people and
all our customers have the right
to data privacy, and so we have
adopted the best practices and
standards set out in applicable Data
Protection Regulations across all
of our markets and operations, and
in relation to all individuals whose
personal data we obtain and use
(not just individuals in the EEA).
Our Group Data Protection policy is
aligned with the UK General Data
Protection Regulation ('GDPR')
requirements to set out the
minimum data protection standards
we apply throughout our operations
so that we use all personal data
transparently, fairly and securely.
Detect
We define the appropriate activities
for the timely discovery of the
occurrence of security events. We
monitor continuously and verify the
effectiveness of protective measures.
Respond
We ensure response planning
processes are executed before,
during and after an incident, so that
we take appropriate action regarding
situations and contain their impact.
We also implement improvements,
by incorporating lessons learned
from current and previous
detection/response activities.
Recover
We undertake appropriate activities
to maintain plans for resilience and
to restore any capabilities or services
that were impaired due to an incident.
Our recovery function ensures timely
recovery to normal operations to
reduce the impact from an incident.
Uncompromising on
Quality and Compliance
Intertek Core Mandatory Controls
('CMCs') are how we define,
monitor and achieve consistently
high standards in our control
environment throughout the whole
organisation. The CMCs are updated
annually, reflecting changes in
Intertek's systemic risks (risks which
are inherent in our operations). The
CMCs were updated in December
2023 and communicated to all
colleagues via Whatsin, our intranet.
The CMCs are comprehensive,
setting out Intertek's control
framework; there are 295 controls
organised under nine themes.
To ensure implementation, and to
remain uncompromising on Quality
and Compliance in relation to our
cyber risk, our IT-related Core
Mandatory Controls framework
forms the mechanism to define,
monitor and achieve consistently
high standards. Control and
oversight is provided through our
CyberSecurity Team, Group Legal &
Compliance and the Internal Audit
team. We have mandatory training
on data security and privacy for
all employees and global data
breach response processes.
i Sustainability
Disclosure Index
The 2023 Intertek Sustainability
Disclosure Index is complementary
to our published reports and sets
out how our latest disclosures
map to our own Total
Sustainability Assurance
standards, the Global Reporting
Initiative (‘GRI’) and applicable
Sustainability Accounting
Standards Board (‘SASB’)
requirements.
intertek.com/about/our-responsibility/
More information on how
sustainability is governed at
Intertek can be found within our
Directors’ report on pages 46-47
Enterprise security
At Intertek we have adopted a risk-
based CyberSecurity framework, based
on international best practice, NIST
Cybersecurity Framework. Our framework
guides clear policies, guidelines, and
supporting controls. We continue to
innovate, enhancing service delivery
and strengthening internal and external
customer relationships to protect
customer, employee and Intertek data.
There is regular reporting on progress of
the security programmes to governance
and oversight committees by our
dedicated Chief Information Security
Officer, who leads a global team.
We use a risk-based security
framework model:
Identify
We develop a clear organisational
understanding of risks to our
systems, people and data, enabling
us to prioritise efforts that are
consistent with our risk management
strategy and business needs.
Protect
We put in place appropriate
safeguards to ensure delivery
of critical services, including
access control, staff awareness
and training, and data security.
These safeguards support our
ability to limit or contain the
impact of potential events.
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Directors' report
Board promise
1
2
3
We recognise our responsibility to all
stakeholders and will strive to ask
the questions that matter and make
the right decisions.
We will be forward looking and use our
diverse perspectives and insights to
promote Intertek’s Purpose of bringing
quality, safety and sustainability to life.
We will inspire our people to take
client relationships and our
performance to greater heights and
to create sustainable growth for all.
Governance highlights
Return of capital
111.7p Ordinary dividend per share for the financial
year ended 31 December 2023 including interim
and final dividend.
Progressed Board succession
Approved the appointment of a new Non-Executive
Director and Chief Financial Officer.
Appraised strategic delivery
Launch of the AAA diversified growth strategy.
Acquisitions
Focused on investing in growth through
targeted acquisition activity that will benefit
customers and shareholders.
Andrew Martin
Chair of the Board and
Nomination Committee
Chair
Gill Rider CB
Non-Executive Director and
Remuneration Committee
Chair
Jean-Michel Valette
Non-Executive Director and
Audit Committee Chair
Directors' report
Contents
44 Governance at a glance
45 Compliance with the 2018 UK
Corporate Governance Code (‘Code’)
46 Governance structure
48 Chair's introduction
50 Board of Directors
53 Group Executive Committee
54 Board leadership and company purpose
62 Composition, succession and evaluation
65 Audit, risk and internal control
66 Committee reports
66 Nomination Committee report
70 Audit Committee report
78 Remuneration Committee report
104 Other Statutory Information
44
The Directors present their report and the audited consolidated financial statements for the year ended 31 December 2023 in Book two and Book three.Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Governance at a glance
Board composition and diversity as of 31 December 2023
Board skills and experience
Consulting
Risk Management
Customer Service/Care
People
Finance
International
Sustainability
Digital/Technology
UK Listed Company Director
Previous/Current CEO
UK NED Experience
6
11
9
8
9
11
11
4
10
7
9
Board balance by
gender
Board balance by
independence
1
1
2
2
1.
Male
2.
Female
58%
42%
1.
Executive Directors
17%
2.
Independent Non-Executive Directors 83%
Geographical heritage
Ethnicity
1
1
4
3
2
Our Non-Executive Directors have a
diverse skill set and background as shown
in the table above. This expertise enables
the Board to constructively challenge
management and encourages diversity of
thought in the decision-making process.
For their full biographies please see our
website.
intertek.com/about/leadership-team/
2
1.
Europe
2.
North America
3.
Australasia
4.
South-East Asia
50%
17%
8%
25%
45
1.
White
2.
Asian
75%
25%
Board Tenure
1
3
2
1.
0-3 years
2.
3-6 years
3.
6-9 years
50%
25%
25%
Compliance with the 2018
UK Corporate Governance Code (‘Code’)
This is more than the pension
contribution of the majority of the UK
workforce. Regardless of the obligations
outlined in the CEO’s contract, agreement
was reached with the CEO to reduce
his pension from 30% of base salary to
5% over a period of five years starting
from 2021, and from 1 June 2024, the
pension contribution will reduce to 10%
of base salary. More information on the
engagement with shareholders on this
issue is outlined in the letter from the
Chair of the Remuneration Committee
in the 2021 Annual Report & Accounts.
A more detailed explanation of our
compliance can also be found on
our website at intertek.com. The
information required to be disclosed
in accordance with DTR 7.2.6 can
be found in the Other Statutory
Information section on pages 104–107.
The Directors' report has been
prepared to provide stakeholders
with a comprehensive understanding
of how the Company has applied
the principles and complied with the
provisions of the Code during 2023.
The Code is available at www.frc.org.uk
The Board confirms that during 2023, the
Company has consistently applied the
principles of good corporate governance
contained in the Code and has complied
with the provisions apart from Provision 38.
Provision 38 stipulates that the pension
contribution rates for Executive
Directors should be aligned with
that of the workforce. The pension
contribution for all new Executive
Directors appointed to the Board since
2018 has been aligned with that of the
workforce. However, when the current
CEO joined Intertek in 2015, and prior
to the introduction of Provision 38 in
the Code issued in 2018, his contract
stipulated a pension contribution of
30% of base salary per annum.
Book two: Sustainability ReportBook three: Financial ReportBook one: Strategic ReportIntertek Group plcAnnual Report & Accounts 2023
Governance structure
Our Board of Directors
See pages 50-52 for their biographies
Audit Committee
See page 70 for the Committee Report
Nomination Committee
See page 66 for the Committee Report
Remuneration Committee
See page 78 for the Committee Report
The Chief Executive and the Group Executive Committee
See page 53 for the Group Executive Committee
Risk Governance
Sustainability Governance
Group Risk
Committee
Ethics and Compliance
Committee
Net Zero Steering
Committee
Beyond Net Zero
Steering Committee
Regional, divisional and
functional risk committees
Disclosure Committee
Regional management,
Net Zero Champions and finance
Regional Sustainability
Committees and Champions,
Regional HR and Marketing
Group Investment
Committee
Business Lines
Governance structure
The Board delegates specific
responsibilities, subject to certain financial
limits governed by the Core Mandatory
Controls, to management.
Supporting Committees
The Group Executive Committee operates
a number of supporting committees which
provide oversight on key business
activities and risks.
46
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Governance structure Continued
Our Board of Directors
Nomination Committee
The Board has the ultimate and collective responsibility to promote the long-term sustainable
success of the Company, ensuring that value is created for shareholders and contributes to wider
society through its effective, entrepreneurial and innovative leadership. They ensure that the
necessary resources are in place for the Company to meet its objectives and measure performance
against them.
Our Board consistently acts with integrity, leads by example and promotes the culture to ensure its
dissemination throughout the Company. It sets the strategic aims of the Company, its Purpose,
customer promise, Vision and Values in alignment with our culture as outlined in Book one, pages
10-11 and 16-25.
Matters reserved for the Board and its Committees’ terms of reference can be found on our website
at intertek.com/about/compliance-governance.
Ensures the Board and its Committees have the correct balance of skills, experience and knowledge
and that adequate and orderly succession plans are in place.
Audit Committee
Oversees the Group’s financial reporting, ensuring the effectiveness and independence of the
external and internal audit functions and reviews the Group’s financial internal controls and risk
management systems.
Remuneration Committee
Establishes the Group’s Remuneration Policy and ensures that it supports the strategy promoting
the long-term sustainable success of the Group and that there is a clear link between performance,
remuneration and alignment with our Purpose, Values and strategy.
Chief Executive Officer
The CEO is responsible for:
• Proposing and agreeing the group strategy with the Board.
Group Executive Committee
The Group Executive Committee is responsible for:
• Leading the day-to-day operations of the Group in line with the agreed strategy and commercial
objectives.
• Promoting and conducting the affairs of the Company with the highest standards of ethics,
integrity, sustainability and corporate governance.
• Supporting the CEO on the delivery of our AAA differentiated growth strategy.
• Providing input into strategic and operational decisions aligned to business priorities, and
supporting on the delivery of actions.
• Supporting the CEO in implementing decisions made by the Board.
Supporting Committees
The Board Committees are delegated a specific area of focus by the
Board, while the Group Executive Committee establishes and
oversees the Committees needed at Group and Business Line level to
achieve strategic delivery.
Clarity surrounding the responsibilities of each Committee is ensured
through approved Terms of Reference. Monitoring of delegated
matters is governed by our Core Mandatory controls, an annually
reviewed and refreshed framework that allows the delivery of
strategic aims and financial performance whilst allowing risk to be
assessed and managed. On executive matters, the CEO and CFO are
responsible for providing updates at each Board meeting.
47
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chair's introduction
Dear shareholder
As we reflect on another year of progress and
growth, I am pleased to share with you the highlights
and achievements of our Company in 2023.
Despite ongoing global challenges, including
inflationary pressures and geopolitical uncertainties,
our strong financial performance and our people’s
unwavering commitment to our purpose of ‘bringing
quality, safety and sustainability to life’ have allowed
us to continue delivering exceptional service to our
clients, and create value for our shareholders.
Financial performance
Our financial performance in 2023 was strong,
reflecting the resilience and adaptability of our
business model and the dedication of our talented
teams. The demand for our ATIC solutions is
accelerating and we have delivered the best
like-for-like revenue growth in the last ten years. Our
efforts to mitigate the impacts of inflation resulted
in improved margins, showcasing the continued
strength of our business model.
Our cash performance was strong and our balance
sheet robust. We maintained our disciplined approach
to capital allocation allowing us to invest in
high-growth, high-margin initiatives and respond to
evolving client needs while increasing Return on
Invested Capital to 20.5%.
We continued to allocate resources towards
innovation with a focus on sustainability. Building on
the success of the CarbonClear and CarbonZero
programmes, we launched Intertek Hydrogen
Assurance and opened a state-of-the-art Battery
Centre of Excellence in Italy. I am particularly excited
by the recently announced partnership with SunSpec
to verify products that provide CyberSecurity for
electrical grids.
Our commitment to supplement growth through
acquisitions continued in 2023, with the integration
of PlayerLync, strengthening our People Assurance
services and Controle Analítico Análises Técnicas
expanding our Food and Agriculture offering in Brazil.
In line with our dividend policy, the Board is proposing
a final dividend of74.0p making 111.7p for the full
year representing a payout ratio of 50%.
In recognition of the Group’s highly cash generative
earnings model, strong financial position, ability to
fund continued growth investments and the Board’s
confidence in the attractive long term growth
prospects, from 2024 we are changing our dividend
policy to increase the targeted payout ratio to circa
65% of earnings.
Strategy and People
In May 2023, André and the management team
hosted a successful two-day Capital Markets Event
in London setting out the Intertek AAA
differentiated growth strategy to unlock the
significant ongoing value growth opportunity. This
event was a pivotal moment for Intertek and ahead
of the event, the Board had been fully engaged in
the development of this strategic vision for the
future and with the plans to capitalise on our
strengths and address the areas requiring ongoing
development. Consistent with our commitment to
transparency, we announced new segmental
disclosures and revenue growth targets to align with
our increased focus on key markets and business
areas.
Chair's introduction
On behalf of the Board, I would
like to recognise the amazing
work and commitment of our
entire workforce.
Andrew Martin
Chair
48
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Chair's introduction Continued
Through the remainder of the year, the Board met
with geographic and business line leaders to discuss
the implementation and alignment of the Group
strategy. These meetings have enabled us to see
how we are driving collaboration across the
organisation and enhancing our ability to deliver
best-in-class services to our clients. We also
completed deep dive reviews of the portfolio and
visited one of our key markets holding a Board
meeting in Austin, Texas at the offices of Alchemy.
All these meetings facilitated engagement with our
people who remain at the heart of our success. The
Board fully supports investment in their
development and wellbeing. We are proud of the
diverse and inclusive culture that we have fostered,
which enables us to attract, retain, and develop the
best talent in the industry and is critical for delivering
sustainable value to all stakeholders.
The Board and I would like to express our gratitude
to our entire workforce for their dedication, passion,
and hard work.
Governance and the Board
Strong corporate governance remains a cornerstone
of our Company, underpinning the sustainability of
our business and the delivery of our strategy. The
Board continues to constructively challenge and
support executive management as it executes the
strategy and reacts to change while meeting its core
responsibility of overseeing our governance
framework, risk management, financial performance,
corporate controls and culture.
Throughout the year, we have maintained an open
dialogue with our major shareholders and received
feedback on their views. In addition, I met with
leading shareholders to hear directly their thoughts
about our performance, strategy, and governance,
which has been invaluable in shaping our approach to
creating long-term value for all stakeholders.
There have been a number of changes to the Board.
In March 2023, Colm Deasy was appointed Group
Chief Financial Officer. Colm has wide knowledge of
Intertek having previously worked as Group Treasurer,
Head of Tax and a leader of several of our key
businesses. We have continued to enhance
capabilities on the Board, with Apurvi Sheth joining
the Board on 1 September 2023 as a Non-Executive
Director bringing with her over three decades of
experience in consumer brands and ASEAN markets.
As Chair, I am responsible for ensuring the
effectiveness of the Board, its Committees and
individual Directors, that it operates with openness
and inclusivity and that each Board member
contributes such that we benefit from the diversity
of skills and experience that they bring. This year’s
performance review of the Board was internal. The
evaluation concluded that the Board and its
Committees are performing effectively, with clear
and appropriate terms of reference, policies and
processes; have the necessary information and
resources provided and time allocated for discussions
to function effectively; and have an appropriate
balance of skills, experience and knowledge to
encourage challenge and debate.
Looking forward
Our global presence, expertise in Total Quality
Assurance, market leading positions and the
enthusiasm of our people provide a great strong
foundation for continued growth of Intertek. We
remain confident in our ability to deliver sustainable
growth and value for all stakeholders, as we
capitalise on the significant opportunities within the
assurance, testing, inspection, and certification
industry. I would like to thank our shareholders for
their ongoing support and I look forward to sharing
further successes with you in the future.
Despite ongoing global
challenges, including inflationary
pressures and geopolitical
uncertainties, our strong financial
performance and our people’s
unwavering commitment to our
purpose of ‘bringing quality,
safety and sustainability to life’
have allowed us to continue
delivering exceptional service to
our clients, and create value for
our shareholders.
Andrew Martin
Chair
49
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Board of Directors
Board of
Directors
Andrew Martin
N
André Lacroix
Colm Deasy
Graham Allan
N
R
Chair
Chief Executive Officer
Chief Financial Officer
Senior Independent Director
Appointed: to the Board in May 2015
Appointed: to the Board in March 2023
Appointed: to the Board in October 2017
Tenure: 8.5 years
Tenure: 0.75 year
Tenure: 6 years
Appointed: to the Board in May 2016;
appointed Chair in January 2021
Tenure: 7.5 years
Skills and competencies:
Andrew is a qualified accountant and an
Associate of the Chartered Institute of
Taxation with wide-ranging experience and an
extensive financial background within large
international organisations, who provides great
strength and depth to the Intertek Board. His
experience as a Chair and as Non-Executive
Director assists in promoting the long-term
sustainable success of the Company for
stakeholders and generating value for
shareholders.
From 2012 to 2015, Andrew was Chief
Operating Officer for Compass Group plc having
previously been their Group Finance Director
from 2004 to 2012. Before joining Compass
Group, he held senior financial positions with
First Choice Holidays plc, (now TUI Group) Forte
plc and Granada Group plc (now ITV plc) and
was a partner at Arthur Andersen.
Andrew has been a Non-Executive Director of
easyJet plc and a Non-Executive Director of the
John Lewis Partnership Board.
Skills and competencies:
Colm brings extensive knowledge and
understanding of the complexities of the
Intertek Group to his role on the Board.
He joined Intertek in 2016 as the Group
Treasurer and later Tax Director.
In 2019 he moved into the role of Regional
Managing Director for Asia Pacific before his
promotion as President Global Transportation
Technologies, Building & Construction and
People Assurance.
Prior to Intertek, Colm worked in banking and
insurance in EMEA, before coming to the UK to
take up senior roles in finance and general
management.
Skills and competencies:
André has an excellent track record of
delivering long-term growth strategies and
shareholder value globally across diverse
territories.
He has consistently succeeded in driving
growth and performance in his career and has
the requisite qualities to carry on leading
Intertek in its continued drive for long-term
sustainable value creation.
From 2005 to 2015, André was Group CEO of
Inchcape plc, during which time he
strengthened its position in the global
automotive market with a track record of
delivering double-digit earnings growth with
strong cash generation, and created significant
shareholder value as its market capitalisation
more than doubled during his tenure as CEO.
He was previously Chairman and Chief
Executive Officer of Euro Disney S.C.A.,
President of Burger King International
operations and the Senior Independent
Director of Reckitt Benckiser Group plc from
October 2008 to December 2018.
Current principal external
appointments:
Non-Executive Chairman of Hays plc and Chair
of their Nomination Committee
Current principal external
appointments:
None
Current principal external
appointments:
None
Skills and competencies:
Graham brings strong general management
experience, as well as extensive knowledge of
Asian and other international markets, in
consumer and retail businesses. This
background provides a strong complement to
the current skills on the Board. He also has vast
experience of operating at Board level on a
global scale. Graham was Group Chief
Executive of Dairy Farm International Holdings
Limited, an Asian retailer based in Hong Kong,
from 2012-2017 and President and CEO of
Yum Restaurants International (a Division of
Yum Brands) from 2003-2012. In the latter
role, he led the growth of global brands KFC,
Pizza Hut and Taco Bell across most
international markets. He had previously
worked at Yum Brands and PepsiCo in several
senior management positions since 1992. Prior
to joining PepsiCo, he worked as a consultant
at McKinsey & Co Inc.
He has also previously served as a Non-
Executive Director of Yonghui Superstores Co.
Ltd in China and a Commissioner of Hero Group,
a leading Indonesian retailer.
Current principal external
appointments:
Senior Independent Non-Executive Director of
InterContinental Hotels Group plc, Non-
Executive Director of Associated British Foods
plc, Americana Restaurants International plc
and a Director of Ikano Retail Pte Ltd (privately
owned). Chairman of Bata International
(privately owned) and adviser to Nando's Ltd.
Committees:
Audit
Nomination
Remuneration
Committee Chair
A
N
R
(Tenure is given as at 31 December 2023)
50
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Board of Directors Continued
Gurnek Bains
N R
Lynda Clarizio
A
Tamara Ingram OBE
N R
Jez Maiden
A
Kawal Preet
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointed: to the Board in July 2017
Appointed: to the Board in March 2021
Appointed: to the Board in December 2020
Appointed: to the Board in May 2022
Appointed: to the Board in December 2022
Tenure: 6.5 years
Tenure: 2.75 years
Tenure: 3 years
Tenure: 1.5 years
Tenure: 1 year
Skills and competencies:
Gurnek’s extensive experience, working with
senior leaders across a wide range of industries
internationally and his thought leadership on
culture and leadership development provides
an important voice in the discussions at Board
level, particularly with the Group People
Strategy being of such great importance to the
long-term sustainable success of the Company.
Gurnek was the co-founder of YSC Ltd, a
premier global business psychology
consultancy. He led the business as CEO and
Chair for 25 years, to a position of global
pre-eminence, and a client base comprising
over 40% of the FTSE 100. Gurnek has worked
extensively with multinational organisations in
the areas of culture change, vision and values,
executive coaching and assessment, Board
development and strategic talent
development.
Gurnek is Chair of Akram Khan Dance Company
and has a doctorate in psychology from Oxford
University.
Current principal external
appointments:
Managing Partner of Global Future Partnership
LLP and CEO of Nous Think Tank.
51
Skills and competencies:
Lynda has over 20 years’ experience in the
media industry growing and scaling businesses
with a focus on data and technology to drive
transparency, accountability and improve
business performance. Lynda’s outstanding
leadership and significant experience in digital
measurement and broader technology provides
a strong addition to the skills on the Board.
Lynda is the Co-Founder and General Partner
of The 98, an early stage venture fund
investing in technology businesses led by
women. Lynda was President of U.S. Media at
Nielsen Holdings plc, a global measurement and
data analytics company. She has also held CEO,
President and other leadership positions at
AppNexus, Inc., INVISION, Inc., AOL Inc. and
Advertising.com.
She was previously a partner at the law firm
Arnold & Porter, where she practised law until
1999.
Skills and competencies:
Tamara has had an extensive career in
advertising, marketing and digital
communication and has a deep understanding
of consumer brands and digital strategy. She
brings a strong track record of outstanding
leadership in global marketing services and her
experience of branding together with her
stakeholder management abilities bring
additional skills and expertise to the Board.
Tamara held leadership roles within WPP from
2002, and was the Global Chair of Wunderman
Thompson (a subsidiary of WPP plc). Her
executive experience includes senior roles at
Kantar Group, McCann Erickson and Saatchi &
Saatchi UK, where she held the roles of CEO
and Executive Chair. Tamara was previously a
Non-Executive Director of Sage Group plc and
Serco Group plc.
She is Chair of Asthma + Lung UK.
Skills and competencies:
Jez is an experienced international public
company CFO with a strong track record, who
has worked in a diverse range of industries and
sectors primarily manufacturing, service and
finance. In addition Jez has a strong background
as Non-Executive Director.
Jez retired as Group Finance Director for Croda
International Plc, the FTSE100 global speciality
chemicals company, in March 2023 after being
in the role since 2015. Before he joined Croda
International plc, he had been the Group FD at
National Express Group, Northern Foods Plc
and Chief Financial Officer at British Vita Plc.
He was previously the Senior Independent
Director, Chair of the Audit Committee and a
member of the Nomination and Remuneration
Committees at Synthomer plc and Chair of the
Audit & Risk Committee and a member of the
Nomination and Remuneration Committees at
PZ Cussons plc.
Jez is a Fellow of the Chartered Institute of
Management Accountants.
Current principal external
appointments:
Non-Executive Director of CDW Corporation,
Emerald Holding, Inc and Taboola.com Ltd (US
listed companies), and Simpli.fi Holdings, Inc.,
and Cambri Oy (both privately owned).
Non-Executive Director of Human Rights
First (a non-profit international human
rights organisation).
Current principal external
appointments:
Non-Executive Director of Marsh & McLennan
Companies, Inc., Non-Executive Director of
Marks and Spencer Group plc and Non-Executive
Director of Reckitt Benckiser Group plc.
Current principal external
appointments:
Senior Independent Director of Travis Perkins plc;
Non-Executive Director of Smith & Nephew plc,
Chair of their Audit Committee and a member
of their Remuneration Committee; and
Non-Executive Director of the Centre
for Process Innovation Ltd.
Skills and competencies:
Kawal is an accomplished senior executive with
extensive experience of cross-functional
leadership responsibilities in the fast-paced and
dynamic express transportation and airline
industry and supply chains. Her experience of
the Asian, Middle East and African market
provides a strong addition to the skills on the
Intertek Board.
After a career of over 25 years at FedEx
Express in various roles spanning service
quality assurance, ground operations, and
planning and engineering for the air and
ground network, Kawal is currently President,
Asia Pacific, Middle East and Africa, a position
she has held since 2020. In that role, she has
responsibility for a region encompassing 103
countries and territories with nearly 35,000
employees. After working for Tata Motors as a
Graduate Engineer Trainee in India, Kawal
joined FedEx Express as an Associate Engineer
in Singapore. Kawal was previously a
Non-Executive Director of Asia Airfreight
Terminal Co. Ltd, from 2016 to 2020. Kawal has
a degree in Electrical Engineering and an MBA.
Current principal external
appointments:
President, Asia Pacific, Middle East and Africa
for FedEx and US-ASEAN Business Council and
Junior Achievement, Asia Pacific.
Book two: Sustainability ReportBook three: Financial ReportBook one: Strategic ReportIntertek Group plcAnnual Report & Accounts 2023
Board of Directors Continued
Gill Rider CB
R A
Apurvi Sheth
Jean-Michel Valette
A
Non-Executive Director
Non-Executive Director
Non-Executive Director
Appointed: to the Board in July 2015
Appointed: to the Board in September 2023
Appointed: to the Board in July 2017
Tenure: 8.5 years
Tenure: 0.25 years
Tenure: 6.5 years
Skills and competencies:
Gill’s successful career on the people agenda in
organisations across the world, dealing with a
diverse range of cultures and nationalities and
her extensive experience as a Non-Executive
Director added extensive value to our Board.
Gill was appointed Chair of Pennon Group Plc in
July 2020 having previously been their Senior
Independent Non-Executive Director and Chair
of their Sustainability Committee. She also
chairs their Nomination Committee.
Gill has held positions as Pro-Chancellor and
Chair of the University of Southampton, the
President of the Chartered Institute of
Personnel & Development, Head of the Civil
Service Capability Group in the Cabinet Office,
reporting to the Cabinet Secretary, and a
number of senior positions with Accenture,
resulting in the post of Chief Leadership Officer
for the global firm.She was previously a
Non-Executive Director of De La Rue plc and
Senior Independent Director of Charles Taylor
plc, where she also chaired their Remuneration
Committee. She is currently President of the
Marine Biology Association.
Current principal external
appointments:
Chair at Pennon Group plc, where she also
chairs their Nomination Committee. Chair of
South West Water (a subsidiary of Pennon
Group plc).
52
Skills and competencies:
Apurvi has extensive executive experience
spanning over three decades across numerous
well-known international consumer brands in
the food and beverage industry. Most recently
she was the Managing Director, Southeast Asia
at Diageo plc. Having spent the majority of her
career in Asia and India, Apurvi brings her deep
consumer experience across diverse markets
including China, Japan, Australia, SEA and India
to the Intertek Board.
Apurvi has also served as Marketing Director
South East Asia at PepsiCo International,
Marketing Director of India at Coca-Cola in India
and held various roles at Nestle SA in India . She
also previously served as a Non-Executive
Director of Heineken Malaysia BHD.
Skills and competencies:
Jean-Michel brings strong US and global
management experience, especially in
consumer and luxury goods companies, which
broadens the international and customer
knowledge on the Board. Jean-Michel’s wealth
of knowledge of the US markets, especially
from a customer perspective, is an asset to the
Board.
Jean-Michel has more than 30 years’
experience in management, US public company
corporate governance, strategic planning and
finance. Previously he was Chair of Sleep
Number Corporation, Chairman of Peet’s Coffee
and Tea, Inc., a US beverage company which
was then listed. He was also Managing Director
at the Robert Mondavi Winery before becoming
Chair. In his earlier career, Jean-Michel was
President and CEO of Franciscan Estates, Inc.,
a premium wine company.
He currently serves as an independent adviser
in the US to select branded consumer
companies.
He has an MBA from Harvard Business School
Current principal external
appointments:
Strategic Advisor to various companies in
Southeast Asia and India, across a wide range
of sectors including food and beverage, retail
and technology. Non-Executive Director of
SSP PLC and a member of their Remuneration
and Nomination Committees.
Current principal external
appointments:
Director and Audit Committee Chair of The
Boston Beer Company; Chairman of Hunneus
Vintners and Chairman of DripDrop Hydration
Inc. (Both private US companies). Director of
Fine & Rare Wines Limited.
Division of responsibilities
Our Directors share collective responsibility for the
actives of the Board. There is a clear division of
responsibilities between the Chair and the CEO as
required under the Code.
Our Independent Non-Executive directors play a vital
role in ensuring good governance and accountability.
The responsibilities of the Chair, CEO, CFO and Senior
Independent Director and other key roles, along with the
matters reserved to the Board, are set out on our
website.
intertek.com/investors/corporate-governance/
Other Directors on the Board during the year
Jonathan Timmis ceased to be an Executive Director on
17 March 2023 having joined the Board in 2021.
Ida Woodger
Group Company Secretary
Ida was appointed as Group Company Secretary on
31 March 2023, having previously held the position of
Head of Sustainability. Ida provides advice and support
to the Board, its Committees and the Chair, and is
responsible for corporate governance across the Group.
Ida is an Associate of the Chartered Governance
Institute UK and Ireland.
The appointment and removal of the Company
Secretary is a matter for the Board.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Group Executive Committee
Group Executive
Committee
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
Laura Atherton
Group General Counsel
and Head of Risk and
Compliance
Alexandra Berger
Senior Vice President
Chief Marketing &
Communications Officer
Laura Crespi
Group Financial Controller
Sandeep Das
Regional Managing
Director South Asia and
President Global
Softlines and Hardlines
Ayush Dhital
Regional Managing
Director Asia Pacific
John Fowler
Senior Vice President
Minerals and E&P
Ian Galloway
Executive Vice
President, Caleb Brett
Tony George
Executive Vice President,
Human Resources
Marie Giannini
Vice President
Communications and
Head of Sustainability
Bertrand Mallet
Executive Vice President,
Industry Services
Key changes to the Group
Executive Committee were
announced on 20 March 2023.
A copy of the announcement is
available on our website
intertek.com/investors/
results-presentations-
announcements/
53
Ross McCluskey
Executive Vice
President, Europe,
Middle East and Africa
John Qin
CEO Greater China
Saranpal Rai
President Electrical,
Connected World and
Transportation
Technologies
Julia Thomas
Senior Vice President
Corporate Development
Group
Mark Thomas
Executive Vice President,
Global Sustainability,
Assurance, Agri World
and Food
Carlos Velasco
President Latin America
and Global Building and
Construction
Book two: Sustainability ReportBook three: Financial ReportBook one: Strategic ReportIntertek Group plcAnnual Report & Accounts 2023 Board leadership and company purpose
Board leadership and company purpose
Effective and
entrepreneurial board
Board members and meeting attendance during the year to 31 December 2023
Board members
Andrew Martin Chair
André Lacroix Chief Executive Officer
Jonathan Timmis Chief Financial Officer1
Colm Deasy Chief Financial Officer2
Graham Allan Senior Independent Non-Executive Director
Gurnek Bains Non-Executive Director
Lynda Clarizio Non-Executive Director
Tamara Ingram Non-Executive Director
Jez Maiden Non-Executive Director
Kawal Preet Non-Executive Director
Gill Rider Non-Executive Director
Apurvi Sheth Non-Executive Director3
Jean-Michel Valette Non-Executive Director
1. Ceased to be a Director 17 March 2023
2. Appointed as a Director 17 March 2023
3. Appointed as Non-Executive Director 1 September 2023
Role of the Board
The governance of Intertek is the responsibility of
the Board, with the support of the Group Company
Secretary, and provides the framework of authority
and accountability that operates throughout the
Company to ensure the needs of all stakeholders are
considered and met. Good governance requires the
Board to lead, guide and support the business in its
quest to create sustainable long-term value for the
mutual benefits of our shareholder, customer,
employees and the communities in which we operate.
We all have differing skills, a wide range of diverse
experience and extensive knowledge built up over
time in our professional careers, which enables the
Board to fully understand the strategic business
drivers of Intertek, but also the risks and exposures
associated with the multiple sectors and regions in
which the Company operates.
10 0 %
Board meeting attendance
54
Scheduled
meetings
eligible to
attend
Meetings
attended
5
5
1
4
5
5
5
5
5
5
5
2
5
5
5
1
4
5
5
5
5
5
5
5
2
5
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Board leadership and company purpose Continued
There is a clear division of responsibilities between
the roles of the Chair and the Chief Executive.
To allow these responsibilities to be discharged
effectively, the Chair and Chief Executive maintain
regular dialogue outside the boardroom, to
ensure an effective flow of information. The
Non-Executive Directors have formal as well
as informal contact with senior leadership.
Contact with the wider business is encouraged
to develop a deeper understanding of the Group’s
operations and this engagement is welcomed.
The Conflicts of Interest Register is maintained
by the Group Company Secretary and the Board
undertakes an annual review of each Director’s
interests, if any, including outside the Company.
Any conflicts of interests are reviewed when
a new Director is appointed, or if and when a
new potential conflict arises. A formal process
is also in place for managing such conflicts to
ensure no conflicted Director is involved in any
decision related to their conflict and, during
the year, this process operated effectively.
The Board, with the Leadership Team, sets the
corporate culture that defines our Purpose
and establishes an environment where values
are appreciated and respected, encouraging
all of our people to ‘Do Business the Right
Way’. Our culture and values have been, and
remain, the core foundations of Intertek.
Our 10X culture is one of entrepreneurial spirit
and high performance, and our people are
excited about the opportunities ahead.
The Intertek value proposition and Purpose
Intertek’s story has always been about innovation.
In 1885 we began testing and certifying grain
cargoes before they were put to sea, and in
1888 we pioneered the idea of independent
testing laboratories. Then in 1896, the greatest
inventor of them all became part of our story.
When Thomas Edison released the wonders of
electricity and the light bulb he wanted to ensure
that his products were checked, tested and safe.
He established the Lamp Testing Bureau, later
to become the Electrical Testing Laboratories.
Today, our superior customer service is based
on our Science-based Customer Excellence
approach which we have built up over many years.
This is based on three essential components:
our science-based technical expertise, our
continuous improvement and innovation.
The foundations and aspirations of our business
remain true to those established by our visionary
founders, and their innovation and energy
continue to be our inspiration. Our passion
and entrepreneurial culture will ensure that
we deliver for our customers in quality, safety
and sustainability – today and in the future.
Board oversight of culture
Our success is based on a culture of trust amongst
our colleagues, globally. To support and ensure
this trust, we continuously monitor and develop
further insights into the culture operating within the
business. More detail on our review is on page 58.
As a Board, we are committed
to fulfilling our legal obligation to
act with integrity, to pursue
the Group's success for the benefit
of shareholders and to consider
the interests of our stakeholders.
Andrew Martin
Chair
The effectiveness of the Board is reviewed at
least annually and conducted according to the
guidance set out in the Code. You can read more
about this year’s internally facilitated Board
Effectiveness evaluation on pages 62–63.
Board meetings
We held five scheduled Board meetings during
the year. Following each meeting the Chair also
held private sessions with the Non-Executive
Directors and maintained regular contact
with the Senior Independent Director.
The Group Company Secretary is Secretary to the
Board, and she attends all meetings and provides
advice, guidance and support as required.
Where Directors have concerns about the operation
of the Board or the management of the Company
that cannot be resolved, the minutes will reflect
this. No such concerns were raised during the year.
Directors’ conflicts of interest
The Board operates a policy to identify, authorise and
manage any conflicts of interest to assist Directors in
complying with their duty to avoid actual or potential
conflicts. The Directors are advised of the process
upon appointment and receive an annual refresher.
Whenever any Director considers that they are, or
may be, interested in any contract or arrangement
to which the Company is, or may be, a party, the
Director gives due notice to the Board in accordance
with the Companies Act 2006 and the Articles.
55
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Board leadership and company purpose Continued
Board activity in focus
The following pages give an
insight into how we, as a Board,
use our meetings as a mechanism
for discharging our
responsibilities, including how the
consideration of stakeholders is
embedded into our workings as a
Board and the range of matters
we considered and discussed
throughout the year.
While the Board engages directly with
stakeholders on some issues, the size
and complexity of the Group and our
stakeholder groups means that
engagement often happens below Board
level. However, the Board considers
information from across the organisation
to help it understand how our operations
affect our stakeholders’ interests and
views.
Each Board meeting follows a carefully
structured agenda agreed in advance
by the Chair, CEO and Group Company
Secretary; this ensures that proper
oversight of key areas of responsibility
are scheduled regularly, and that
adequate time is available for the
Board to fully consider strategic
matters.
The Board and its Committees
understand the strategic significance
of stakeholders in our business. The
Directors take into account the
interests of colleagues and the need to
foster relationships with other key
stakeholders in making decisions. We
acknowledge that our decisions might
not necessarily result in a positive
outcome for all our stakeholders and
so the Board has to balance conflicting
interests in arriving at its decisions.
Section 172 statement
In their discussions and decisions during
the year, the Board of Directors have
acted in the way that they consider, in
good faith, would be most likely to
promote the success of the Group for the
benefit of its members as a whole (having
regard to stakeholders and the matters
set out in sub-sections 172(1) (a)–(f) of
the 2006 Act).
Details of how the Board have engaged
with colleagues during the year, and how
they have had regard to their interests
and the need to foster business
relationships with other stakeholder
including customers and others, is set out
on the following pages together with the
Board’s principal decisions,
56
Strategy and
Performance
People
and Culture
Workforce
engagement
The Board clearly understand the
responsibility to deliver long-term
sustainable success and returns
for shareholders, underpinned by
the highest standard of corporate
governance, conduct and
integrity. We collectively review,
discuss and annually agree the
Group’s strategy.
Our people are truly amazing. To
support and ensure our success is
based on our culture of trust, we
continuously monitor and develop
further insights into the culture
operating within the business.
Our people are key to Intertek’s
success and they are always
considered as part of the
Board’s discussions and decision
making.
More details on page 57
More details on page 58
More details on pages 59
Sustainability
Customer
engagement
Sustainability is central to
everything we do at Intertek and
as a purpose-led Company, it is
anchored in our Purpose, Vision
and Values. The Board, as part of
its overall stewardship of the
Company, oversees the Group's
sustainability and corporate
responsibility.
The desirability of the Company
maintaining a reputation for high
standards of business conduct,
the accuracy and validity of
reports and certificates that we
provide, maintaining the trust and
confidence of our customers, their
customers and others impacted
by our work, are important factors
which contribute to our success.
Investor and
shareholder
engagement
The Board is committed to
maintaining an active and open
dialogue with investors and
sees this as an important part
of the governance process.
More details on page 60
More details on page 60
More details on page 61
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Principal decisions
• The Board endorsed the AAA strategy.
• The Board recommended a final dividend of
74.0p per share making 111.7p for the full year.
• The Board approved the acquisitions of
PlayerLync and Controle Analítico
®
Board leadership and company purpose Continued
The Board in Action
Strategy and performance
We, as a Board, clearly understand our
responsibility to deliver long-term sustainable
success and returns for our shareholders,
underpinned by the highest standard of corporate
governance, conduct and integrity. We collectively
review, discuss and annually agree the Group’s
strategy.
Strategic planning discussions are supported by
our Purpose to bring quality, safety and
sustainability to life, and to make the world a
better, safer and more sustainable place whilst
looking at the long-term structural drivers and the
emerging trends shaping the future of the world,
to ensure that the business continues to evolve to
meet the changing needs of all stakeholders. Our
AAA strategy and goals are outlined in Book one,
pages 10–11.
Activities of the Board
Every December, the Board reviews, discusses and
agrees the Group’s strategic plan and objectives.
During the year, the Board then monitors and reviews
the performance of the business to ensure that the
strategic objectives are being met. This is an ongoing
process which is reviewed annually by the Board and
involves a thorough review of the progress being
made on the implementation of the strategy and the
five-year business plan. The strategic review involves
a 360˚ review of the Intertek value proposition,
strategy, updates on the competitive environment
and regulatory changes.
In addition to regular items, the Board received
presentations from the Leadership Team and global
leaders across the business on their areas of
responsibility and expertise. External speakers also
present periodically to provide an overview on global
or regional matters.
The changes to the economic environment, the
long-term structural drivers and emerging trends
shaping the world are discussed, as well as the
resulting impact on Intertek, together with the
strategic initiatives for the year. This ensures
alignment with our Purpose of bringing quality,
safety and sustainability to life.
Following the engagement and development of this
strategic vision for the future, the Intertek Amazing
ATIC Advantage (‘AAA’) differentiated growth
strategy was launched at the Capital Markets Event.
Having made strong progress and demonstrating the
power of our compelling Total Quality Assurance
value proposition to give our clients the ATIC
advantage the AAA strategy continues our
good-to-great journey to unlock the significant value
growth opportunities ahead.
During the year the Board also received and
discussed the CEO's report at each meeting which
focused on:
• the group’s overall performance and operations
• progress against our strategic priorities
• the competitive and regulatory environment that
Intertek operates in
• engagement with, and the views of, our stakeholders
including our investors and our colleagues
• key business operations including matters which
are important to the group’s reputation, as well as
colleague, customer, supplier and community
considerations.
During the year, the Board discussed, reviewed and,
as appropriate, approved:
• The financial statements at the full and half year
including any external guidance. It also discussed
the feedback from investor meetings, including
those post publication of each set of financial
results. At each meeting, the Board reviewed the
current financial and trading performance for the
period against budget and consensus, and the full
year outlook for each division and the group as a
whole.
• the going concern and viability statements
• reports, on a monthly basis, outlining share register
movement, our share price performance relative to
the market and industry, investor relations
activities and engagement with shareholders.
• any significant litigation, including our response
and the stakeholder and reputational impact of
these.
• the business, the market, strategic rationale,
management team, culture and business plan in
respect of proposed acquisitions.
57
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Board leadership and company purpose Continued
Our people are truly amazing and our success is based on a culture of trust amongst our colleagues globally.
To support and ensure this trust, we continuously monitor and develop further insights into the culture
operating within the business. In doing so, we review the following throughout the year:
Link to culture
Town Halls allow the dissemination of information to employees across the Group and enable local leadership to communicate the right behaviours and cultural
expectations, as well as give peer nominated awards for demonstrating our 10X Energies. Town Halls occur monthly at most Intertek locations globally. The 10X
growth, coaching, training, people planning and the focus on recognition at all levels ensures that the right values and culture are driven throughout the
organisation.
The Board reviews voluntary permanent employee turnover and the Intertek ATIC Engagement Index and as outlined in Book one, page 29, two of our Beyond Net
Zero targets are a voluntary permanent employee turnover rate < 15% (2023: 12.3%, 2022: 14%) and an Intertek ATIC Engagement Index of 90 (2023: 87, 2022:
80). During the year, we also launched Champions in collaboration with Gallup. Please read more on page 10.
We have designed our long-term incentive plans to encourage the right behaviours and values across our global business, in alignment with our Purpose. In 2022, we
added an ESG component to the annual incentive scheme, based on the feedback from both shareholders and other stakeholders and in accordance with the Group’s
broader Purpose of making quality, safety and sustainability a reality. The Remuneration Committee report provides more details on this aspect.
Due to the importance we place on safety within Intertek, we have updates at every Board meeting on Health and Safety statistics across the Group to monitor
trends year-on-year and to ensure that the right practices are being followed.
We strive for continued progress in reducing incidents and have set a target for Total Recordable Incidents < 0.5 per 200,000 hours worked (2023: 0.51, 2022: 0.44).
Our Intertek Global Wellbeing programme, Kindness, was introduced to support the wellbeing of all employees.
Updates at every Board meeting on all hotline and whistleblowing reports and analysis by issue type. This enables the Board to determine if there are any trends
which need further analysis or investigation. For more information see pages 41 and 42.
As a provider of quality, safety and sustainability assurance services, Intertek relies on a skilled workforce. The Board receives an update annually from the EVP HR
on programmes available to employees. Employees and contractors are also asked to complete annual training on the Intertek Code of Ethics to demonstrate their
understanding of, and commitment to, the highest standards of business conduct and ensure that we do business the right way. For more information see page 41.
As outlined in Book one, page 29, one of our Beyond Net Zero targets is having 100% compliance training completion for eligible employees (2023: 97.6%, 2022:
96.8%).
Updates at every Board meeting on material legal claims and a review of the significant legal claims by the Audit Committee to monitor the trends and types of
claims.
Updates at every Audit Committee meeting on internal audit reports, the areas of non-compliance with the Financial Core Mandatory Controls and actions taken to
address the non-compliance together with trend analysis to underscore that we are ‘Doing Business the Right Way’.
When the Board considers acquisitions, one of the factors we take into account is the culture of the business being acquired and how it will fit within the Intertek
Group. Read more on page 57.
The Board in Action
People and Culture
Area
View from the top
Globally aligned reward
and incentive schemes
Health, safety and
wellbeing
Ethics and compliance
reports
Training
Key claims reports
Internal audit reports
Acquisitions
58
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Board leadership and company purpose Continued
The Board in Action
Workforce engagement
The world needs Intertek more than ever, with the
unrivalled expertise of our people, our focus on
delivering risk-based Total Quality Assurance
solutions, and our proven track record of innovating
and anticipating the growing needs of our clients as
the world around them grows more complex.
Technology has been used to facilitate the
attendance of many from overseas without the
need for travel to the physical Board meeting. The
Board was particularly interested to engage with
and hear feedback from our employees across the
different locations.
The newest members of the Board undertook
additional visits to our laboratories both in person
and via video links, engaging with our employees
across the world. More details on the Non-
Executive Directors induction can be found on
page 64.
26
countries visited
by Directors
during 2023
During the pandemic, Microsoft Teams was
instrumental in providing instant communication
between all business lines and functions, and we
have continued to utilise technology as we returned
to in person meetings. This has enabled the Board to
virtually meet and visit far more employees and sites
than previously possible.
Activities of the Board
During the year the Board received updates on and
discussed:
Feedback from town halls conducted across the
world. Question and answer sessions are held at
town halls to provide two-way communication and a
method of further engagement. André Lacroix led 27
Town Halls across the world during 2023.
Our colleagues across the world continue to upload
stories about how they or their team are bringing our
Purpose to life through their work. These stories are
shared with the Board as part of Sustainability
Moments at the start of each Board and Committee
meeting.
The Board met with colleagues within the business
during the year. 22 leaders and subject matter
experts across the Group presented on their areas of
expertise at Board meetings. They have also met
many other colleagues visiting sites during the year
and on the visit to Austin, USA in October 2023.
The way in which our people combine passion and
innovation with customer commitment to create a
single unbeatable asset sets us apart and is a vital
element of our entrepreneurial, customer-centric
culture. The variable remuneration structure and
policy for the Executive Directors cascades down to
the wider workforce and is communicated
throughout the Group, ensuring engagement across
Intertek to ensure alignment with our Purpose, to
drive the right behaviours and to deliver our AAA
strategy. We are focused on ensuring that our
strategy and culture give our people the right
platform to not only grow and develop their careers,
but to support our Purpose in making the world a
better place by bringing quality, safety and
sustainability to life for an ever better world.
After extensive discussions when the Code was
introduced, we decided not to choose one of the
methods suggested in Provision 5 of the Code due
to the global nature and size of the business,
together with the complexity and diverse make-up
of the various sectors and regions in which we
operate. Instead, we utilise a multi-faceted
approach to workforce engagement to make
certain that what is in place ensures that we, as a
Board, receive 360˚ multi-source feedback to
assist us in evaluating the different views and
perspectives from our employees across the Group.
We keep our engagement mechanisms under
review and continue to believe that this
methodology remains effective as it enables us,
the Board, to fully understand the views of the
workforce when taking such considerations into
account as part of our decision-making process.
This is vital as our people are core to our business
and make it happen 24/7.
59
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Board leadership and company purpose Continued
The Board in Action
The Board in Action
Sustainability
Sustainability is central to everything we do at
Intertek and, as a purpose-led Company, it is
anchored in our Purpose, Vision and Values. The
Board, as part of its overall stewardship of the
Company, oversees the Group’s sustainability
and corporate responsibility, together with any
material environmental and social issues. The
Board recognises the importance of
sustainability to all our stakeholders, together
with the increasing risks associated with climate
change and ensures that at every Board and
Committee meeting, the first item on every
agenda is a 'Sustainability Moment' to
demonstrate its importance to the future
long-term sustainable success of Intertek. While
the Board as a whole has responsibility for
overseeing Intertek's approach to sustainability,
governance and oversight of the impact of
Intertek’s operations on the community and
environment is delivered by two workstreams: the
Net Zero Steering Committee and the Beyond Net
Zero Steering Committee. Both steering
committees oversee and monitor our policies,
practices and progress against our sustainability
commitments and targets. Further information on
the composition of these steering committees,
together with their remit, is outlined in Book one
on page 60.
60
Activities of the Board
During the year the Board received regular reports
with detailed deep dives on major customers.
The Board visited customers on the overseas Board
visit to Austin.
The Board also reviews and endorses the Group
Marketing and Group Innovation Strategies.
Customer engagement
Customer engagement is important for customer
growth as it develops and strengthens our
relationships enabling Intertek to understand the
services they need and what they expect from us.
To ensure that we continue to innovate and
anticipate the growing needs of our customers,
constantly evolving and improving our customer
proposition to meet their changing needs and the
changing world around us.
Recent examples of innovation by engaging with
our customers can be found on pages 18-25 and
in Book one: Strategic Report on pages 23–24.
We offer our customers the Intertek Science-
based Total Quality Assurance advantage to
strengthen their businesses and supporting them
to thrive in an increasingly complex world.
Integral to this is ‘Doing Business the Right Way’
and our internal risk, control, compliance and
quality programme. This means living our Values,
having the highest standards of ethics and
integrity in how we conduct ourselves every day,
everywhere and in every situation.
The programme includes:
• processes, tools and training to ensure that our
people work in a safe and inclusive environment;
• the services we provide and the contracts we
enter into are delivered with integrity and in line
with our commitment to Total Quality;
• a commitment from every colleague to the
highest standards of professional conduct; and
• information about managing our risks and doing
the right thing for the longer term to deliver our
sustainable growth.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Board leadership and company purpose Continued
The Board in Action
Investor and shareholder engagement
Investor relations programme
Roadshows
January
• Oddo-BHF Forum 2023, Lyon
February – March
• Full-year results 2022
• Annual Results Roadshow
• Bank of America Business, Leisure and Transport Conference 2023,
London
• Berenberg UK Corporate Conference 2023
•
Jefferies Small-Cap Conference
May
• Capital Market Event, London
• Trading Statement
• AGM
The Board is committed to
maintaining an active and open
dialogue with investors and sees
this as an important part of the
governance process. At each
meeting, the Board receives a
report from the investor relations
department and analysts’ reports
are circulated to the Directors
when available. Feedback from
meetings held between executive
management, or the investor
relations department, and
institutional shareholders, is also
communicated to the Board.
June
• Zurich Roadshow (Citi)
• SG conference, Nice
• US Roadshow (Credit Suisse/UBS)
July – August
• Half Year Results 2023
• Half-year Results Roadshow
• US Roadshow (J.P. Morgan)
September
• BNP Paribas EXANE TIC Conference,
London
• UBS Business, Leisure and Transport
Conference, London
• Citi 2023 Growth Conference, London
• Benelux Roadshow (UBS)
October
• APAC Roadshow (J.P. Morgan)
November
• Frankfurt Roadshow (Berenberg)
• Trading Statement
December
• Berenberg European Conference, London
• Société Générale TIC Conference, virtual
61
Aimed at helping existing and potential investors
understand the Group’s business model, strategy,
financial performance and outlook. The programme is
wide-ranging and includes events and roadshows
throughout the year to update investors and
sell-side analysts on the developments of the Group.
Board shareholder engagement
The Chair, following any engagement with
shareholders, ensures that the Board as a whole has
a clear understanding of their views. Intertek’s
largest shareholders, representing more than 55% of
the share register, are invited annually to meet with
the Chair to share their views and discuss any
corporate governance matters. During April and May
2023, the Chair held nine meetings with
shareholders. There was an increased focus on the
opportunities for Intertek ahead of the Capital
Market Event, some questions relating to corporate
governance and succession planning. The feedback
received was positive, and shareholders continue to
be very supportive of Intertek’s strategy, the
management and the Board. The feedback was
presented and discussed with the Board at the May
Board meeting.
Resources
A wealth of information is available to investors in
our Annual Report & Accounts, half-year
announcements and trading updates and Regulatory
News Service announcements. These materials are
available on our website and are supplemented by
videos, webcasts and presentations including
material from the Capital Markets Event.
Conferences
Executive Directors and the Investor Relations team
attend industry conferences throughout the year,
providing the opportunity to meet a large number of
investors.
Following the full-year and half-year results
announcements, the Executive Directors and
Investor Relations team held meetings with the
principal shareholders.
Feedback Forum
The Executive Directors and Investor Relations
team receive regular feedback from sell-side
analysts and investors during the year both
directly and through the Group’s corporate
advisers. The Group Company Secretary also
receives feedback on governance matters
directly from investors and shareholder bodies.
Annual General Meeting (‘AGM’)
The Board welcomes the opportunity to meet
with both private and institutional investors at
the AGM.
The 2024 AGM is currently scheduled to be held
on Friday, 24 May 2024 at 9.00 a.m. in the
Marlborough Theatre, No. 11 Cavendish Square,
London, W1G 0AN. The AGM provides the
opportunity for all shareholders to ask questions
of the full Board on the matters put to the
meeting, including the Annual Report &
Accounts.
All Board members attend the AGM and, in
particular, the Chairs of the Audit, Nomination
and Remuneration Committees are available to
answer questions. The Board welcomes the
opportunity to meet with both private and
institutional investors at the AGM. The Company
proposes a resolution on each separate issue
and does not combine resolutions
inappropriately. The Notice of the AGM is sent to
shareholders by e-communications or by post
and is also available at intertek.com.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Composition, succession and evaluation
Composition, succession and evaluation
The key findings of the 2021 external
evaluation report were very positive as outlined below
The externally facilitated Board
evaluation process, which considered the
Board composition, diversity and how
effectively members worked together to
achieve objectives, entailed:
• the review and agreement of a
questionnaire to be used at meetings
with each Board member;
• one-to-one meetings with each Board
member and the external evaluator;
• preparation of a report by the external
evaluator;
• discussions on the Board evaluation
outcomes and recommendations with
the Chair and CEO;
• discussion of the results of the
evaluation with the Board as a whole;
and
• the Board identifying and agreeing
areas for improvement — the strategy
and strategic agenda having already
been agreed at the Board meeting in
December 2021.
During recent years, a strong culture of high performance and high integrity with a clear sense of purpose has developed on the
Board and throughout the Company. Great care has been taken, when adding new Board members, to ensure the right fit,
culturally, and in terms of beliefs and outlook to build on the existing excellent chemistry and mutual respect on the Board.
Lynda Clarizio and Tamara Ingram, both of whom were on-boarded during 2021, were very positive about the comprehensive
induction process, noting the one-to-one meetings held with the CEO, the Board members and the Leadership Team, followed
by an around the world tour of Intertek which included two-hour presentations from all the main global leaders, virtual site tours
and questions enabling the new Board members to experience the dynamics of the business.
The Board is very experienced, and this collective experience was an important factor in ensuring that the Board continued to
be as effective throughout the pandemic as it had been before. This enabled the Board to continue to effectively discharge all
of its responsibilities despite only having online meetings between March 2020 and up to December 2021.
The technology employed to hold online meetings is felt to have worked well and, in particular, the online live tours of overseas
sites enabled even more sites to be visited than normal. These tours were felt to be so valuable that, although they are not a
substitute for in-person visits, they will continue to be used more extensively in future, enabling more sites to be visited.
The mechanics surrounding the Board and Committee meetings works extremely well with well-structured agendas. The clarity
of the papers presented enables a complex business to be more easily understood and the papers are of a very high and
professional quality. Due to online meetings taking place during the pandemic, there has been a little more emphasis on
presentations. As more face to face meetings now take place, there will be a return to a more discursive emphasis.
The Board recognised the importance of the work to create the Board Promise to embody the role and purpose of all Board
members in promoting Intertek’s Purpose of bringing quality, safety and sustainability to life and which informs the Board’s
approach to its duties to all stakeholders. Around the Board table there is great pride in what Intertek does across the world for
various stakeholders and in the work that our incredible colleagues perform daily to make the world a safer place with precision,
pace and passion.
The ‘People Agenda’, including talent development, retention, succession and employee engagement features high on the
agenda, even more so given the importance of the highly qualified employee base to the ongoing success of Intertek.
Succession and talent planning is a very thorough and thoughtful process with twice-yearly discussions at the Board.
André continues to bring a real sense of clarity and alignment to Intertek’s strategy, and during the year the Board’s input and
involvement is sought on the areas to be incorporated into the annual strategic review, with the most recent detailed discussion
by the Board held last December. Against the backdrop of extensive opportunity for the industry, the discussions included a
longer-term horizon, looking forward.
Sustainability is very clearly part of Intertek’s DNA and the Board has great confidence in the Company’s environmental and
social credentials with a sustainability moment now part of every meeting agenda. The Board will continue to consider whether
a Board ESG Committee is required, but at present it is considered that the ESG agenda is so important, that it should be the
responsibility of all of the Board. Governance overall is seen to be sound.
There is a real sense of community of purpose on the Board with great support and respect for the work André and the
management team do in addressing challenges as they arise, most recently with the pandemic, and ensuring that the health and
safety of our employees are always the number one priority.
Composition and
succession
The Board is committed to ensuring that
it has the right balance of skills,
experience, knowledge and diversity, to
lead Intertek and deliver our AAA
strategy to make the world a better and
safer place. More information on the
appointment process to ensure that we
have the right individuals who can inspire
and provide passionate leadership is
outlined in the Nomination Committee
report on pages 66–69.
Board Evaluation
The effectiveness of the Board, and its
Committees, is rigorously reviewed
annually and an independent externally
facilitated Board review is conducted
every three years. The internal
questionnaires are reviewed and updated
annually to ensure that the right
questions are asked and take into
account changes in guidance and
regulations.
As planned, and recommended by the
Code, the 2021 external evaluation
process was led by the Chair, supported
by the Group Company Secretary and
facilitated by an independent third party,
Equity Culture. Equity Culture has no
other connection to the Company and
was appointed after a review of
independent advisers in the field of
formal Board evaluations.
62
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Composition, succession and evaluation Continued
Chair and Director evaluation
The Non-Executive Directors, led by the Senior
Independent Non-Executive Director, conducted
a performance review of Andrew Martin, who
was the Chair of the Board during 2023. They
considered his leadership, performance and overall
contribution to be of a high standard during the year.
Andrew Martin, the Chair, met with each Director
to discuss their individual contributions and
performance, together with any training and
development needs. Following these reviews,
the Board remains satisfied that, in line with the
Code, all Directors are able to allocate sufficient
time to the Company to enable them to discharge
their responsibilities as Directors effectively and
that any current external appointments do not
detract from the extent or quality of time which
any Director is able to devote to the Company.
The Board recommends that shareholders
should be supportive of their election or re-
election to the Board at the 2024 AGM.
Board, Committee and Directors’ evaluation
2023
Internal
evaluation
2025
Internal
evaluation
2024
External
evaluation
The 2023 Board internal evaluation process was
led by Andrew Martin, with the support of the Group
Company Secretary, and entailed:
• the completion of detailed questionnaires
by each Board member;
• discussions on the outcomes and
recommendations with the Chair and each
Board member; and
• following discussion of the results of the
evaluation the Board as a whole, identifying
and agreeing areas for improvement.
For each Committee of the Board a similar process
was undertaken. The Committee evaluations looked
at ways in which they could improve their overall
effectiveness, their performance and areas of
improvement during the year.
The internal review of the 2023 Board evaluation
showed strong scores in all four categories that
were evaluated. The Board members agreed that the
Board has the right culture and works well together.
Emerging trends are a regular topic of board
discussion, and the Management are good at bringing
new challenges and opportunities to the table.
The Board valued the additional sessions with global
and regional business line leaders. This gave valuable
and appreciated opportunity to better understand
the business, the implementation of the new strategy
and to have a good dialogue with colleagues.
The Board spends quality time on succession
planning at Board and Senior Executive levels and
will continue to do so.
The outcome from these evaluations confirmed that
the Board and its Committees were performing well
and were appropriately constituted. The evaluation
for 2024 will be externally facilitated.
63
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Composition, succession and evaluation Continued
Kawal's induction included the following
site visits:
Virtual visits to China, Turkey, UAE, Germany and
the US. With a physical visit to Milton Keynes in
the UK.
Learning and development
Ongoing and continual development is crucial to our
Directors remaining highly engaged, effective and
well informed. All Directors are kept up-to-date with
information about Intertek’s business and there is an
ongoing programme of information dissemination
throughout the year. It is important that the
Directors have an appreciation of the business, both
in the UK and overseas. During the year, there were
presentations from the Group Executive Committee
to the Board and meetings have been held on
regional strategy to increase the understanding of
operations, opportunities and risks.
The Company also encourages Directors to attend
briefings and seminars offered by professional and
commercial bodies in order to keep abreast of current
legal and regulatory requirements, especially within
their specialist fields such as audit or remuneration.
Apurvi's induction has so far included the following site visits:
Virtual visits to China, Turkey, UAE and Italy. Apurvi will continue her induction during 2024.
Board induction
There is a full, formal and extensive induction
programme which is tailored to ensure that Directors
joining the Board are provided with the knowledge
and materials to add value from an early stage. This is
managed by the Chair and the Group Company
Secretary.
During the year Colm Deasy, Kawal Preet and Apurvi
Sheth received details of Board procedures, Directors'
responsibilities and various governance-related
issues and strategic priorities within the Group.
For the Non-Executive Directors, the induction
programme also includes a wealth of background
information on the Company and a series of
meetings with other members of the Board, senior
members of management and external advisers.
Visits to our laboratories and sites are also arranged.
Following the success of visiting sites virtually over
the last three years, a comprehensive programme of
virtual visits to our operations was put in place which
is balanced with visits in person to laboratories. This
enables our new Directors to meet senior
management across the Group and our colleagues
working in labs.
The programme aims to provide great insight into the
business, operations and people. This process will
continue to be kept under review.
64
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit, risk and internal control
Audit, risk and internal control
The risk committees report to our Group Risk
Committee which in turn provides a report on risk
and mitigation actions at each meeting of the Board.
Our integrated approach to
identifying and mitigating risks
At Intertek, we view our risk environment as
consisting of emerging risks (risks that are potential
or future-looking) and systemic risks (risks which are
concrete and actually present or inherent in our
operations). Emerging risks are assessed by
perceived likelihood and impact and addressed using
mitigation action plans on a ‘three lines of defence’
model. Systemic risks are addressed using our
internal controls, policies and procedures and also
uses the three lines of defence model, as appropriate.
Our risk identification and mitigation approach is
integrated and dynamic as our risk committees
continually review their emerging risks and, to the
extent those risks start to become systemic (or ‘real’
rather than ‘potential’ risks), identify new controls,
policies or procedures so that we can put new
systemic mitigations in place.
Our integrated approach to risk assurance
We have an integrated approach to getting
assurance that our risks are being appropriately
and effectively identified and mitigated. We use an
assurance map, which takes each of our emerging
and systemic risks and maps an assurance
framework, using the three lines of defence, onto
them by identifying the roles or functions which are
responsible for the management, control and
oversight of those risks.
Objective assurance is provided, in the third line, by
our Internal Audit function (which audits our financial
controls and risks), by our Compliance function (which
audits our non-financial, operational controls and
risks), and by our CyberSecurity team (which audits
our IT controls and risks).
Our integrated approach to
risk governance and oversight
The Board ultimately reviews the Group’s risks,
controls and compliance and mitigation actions.
The Audit Committee is responsible for reviewing the
adequacy and effectiveness of the financial controls.
If this governance and oversight identifies new risks
or the need for new controls, policies or procedures,
those changes are made and fed back to the
framework of risk committees so that governance
and oversight results in a dynamic change to our
risk identification and mitigation action plans.
At each Board meeting during 2023, the Group
General Counsel presented an integrated risk, control
and compliance report including a review of:
• the Group’s emerging risks, the status of the
quarterly emerging risk mitigation action plans and
the new quarterly emerging risk mitigation plans;
• the specific systemic risks including quarterly
hotline and whistleblowing reports, key claims and
authorised unlimited liability contracts; and
• the Group’s systemic risk environment, the status
of the quarterly systemic risk mitigation action
plans and the new quarterly systemic risk
mitigation plans.
Audit
There are formal policies and procedures in place
designed to ensure the independence and
effectiveness of the internal and external audit
functions. Group Internal Audit is a single
independent internal audit function, reporting to the
Audit Committee. Further detail can be found in the
sections headed ‘Internal Audit’ on page 75.
The Board has delegated a number of responsibilities
to the Audit Committee, including monitoring and
reviewing financial reporting, the effectiveness of
internal controls and the risk management
framework, whistleblowing, the internal audit
process and the external auditor’s process. The Audit
Committee reports to the Board on its activities, and
its report for 2023, confirming how it has discharged
its duties, can be found on pages 70–77.
Internal control and risk management
Intertek has implemented an end-to-end integrated
approach to risk, control and compliance which
embeds risk management throughout our business;
allows us to dynamically adapt our controls, policies
and assurance activities as our risk environment
changes; and creates responsibility and oversight of
our risk identification and risk mitigation actions to
ensure they are effective, relevant and robust.
Our integrated risk management framework
Risk management is embedded throughout our
organisation using a framework of divisional, regional
and functional risk committees. These committees
meet, at least, quarterly to identify, monitor and
assess the risks within their area of responsibility
using tools including risk mitigation action plans. It is
the responsibility of each committee to assess
whether its risk environment is changing, whether it
has the right mitigation action plans and whether
new or different plans are required in response to
new or changing risks.
65
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Nomination Committee report
Dear shareholder,
On behalf of the Nomination Committee
(‘Committee’), I am pleased, as Chair, to present the
Committee’s report for the year ended 31 December
2023 which outlines the work of the Committee
during the year.
It is vital that we have the right skills and expertise
around the Board table to help support the business
to seize the opportunities in our industry as our
clients increase their focus on Risk-based Quality
Assurance to operate with higher standards on
quality, safety and sustainability in each part of their
value chain.
The appointments of Kawal Preet and Apurvi Sheth
over the last 12 months have been exciting steps in
the Intertek Board evolution and will ensure that
Intertek is best placed to take advantage of the
great opportunities which come with having in place
a diverse range of individuals with the right skills
around the Board table representing the diverse
nature of the Intertek Group itself.
Our colleagues at Board and management level have
illustrated the defining characteristics we strive for
in our Intertek leaders when carrying out succession
planning, which in turn exemplifies the successful
mechanics of the Committee.
During the year, the Committee prioritised Executive
and Non-Executive Director succession planning. The
need to keep the Board refreshed but at the same
time maintain a knowledgeable and experienced
team of Non-Executive Directors is crucial and forms
a large part of the Committee’s work. The Committee
continues to demonstrate its ability to successfully
identify the key characteristics required on the
Board.
Our discussions built on work done in 2022, having
build up a total skills overview and identified any
gaps. This has facilitated our discussions on likely
future needs whilst also taking the outcomes from
the Board evaluation into account.
Andrew Martin
Chair of the Nomination Committee
Nomination Committee report
This year we recruited a new
Non-Executive Director, who was
carefully selected to complement
the existing skills on the Board
which gives us the right diversity
of viewpoints, skills and
experience to support
Intertek’s strategic journey.
Andrew Martin
Chair of the Nomination Committee
66
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Gill Rider will retire from her role on the Board at the
conclusion of the AGM on the 24 May 2024, after
having served for nearly nine years from the date of
her appointment. During her time on our Board, Gill
has been a diligent and valued member of the Board,
member of the Audit Committee and the Chair of the
Remuneration Committee and we thank her for her
enthusiasm, dedicated service and valuable
contribution.
Subsequently, with effect from 24 May 2024,
Graham Allan will take over the role of Chair of the
Remuneration Committee, having been a member
since 2017. Kawal Preet will be appointed a member
of the Remuneration Committee and Apurvi Sheth
will join the Audit Committee with effect from the
same date.
Nomination Committee report Continued
Committee activity in focus
Board and Committee changes
In 2022, as part of our succession planning, the
Committee initiated searches for new Non-Executive
Directors. In addition to the specific skills, knowledge
and experience deemed necessary, the role
specification contained criteria such as competency
and personal qualities that would be required for the
position. The Committee also paid close attention to
ensure that the candidates selected exhibited the
right behaviours to fit the culture, values and ethics
of the Group and would also be able to allocate
sufficient time to the Company to discharge their
responsibilities.
The Board, upon the recommendation of the
Committee, approved the internal appointment of
Colm Deasy as Chief Financial Officer. Colm joined the
Board as an Executive Director on 17 March 2023.
Having previously held the role of Group Treasurer,
Head of Tax, he moved into the role of Regional
Managing Director in 2019 for Asia Pacific before his
promotion as President Global Transportation
Technologies, Building & Construction and People
Assurance. Colm brings extensive knowledge and
understanding of the complexities of the Group to
the role. Prior to joining Intertek in 2016, Colm
worked in banking and insurance in EMEA and held
senior roles in finance and general management.
The Committee engaged Spencer Stuart, an external
search agency with no other connection to the
Company or its individual Directors, to assist with the
selection process. For the searches, an initial list of
potential candidates was produced and shortlisted.
The Committee members and the Chair met
separately with the shortlisted candidates, following
which they agreed to recommend to the Board the
appointment of Kawal Preet, as previously reported,
who was appointed to the Board on 31 December
2022. She is a highly experienced executive who is
currently President Asia Pacific, Middle East and
Africa for FedEx Express and with her extensive
knowledge of the Asia, Middle East and African
market provides a strong addition to the current skills
on the Board.
In addition, Apurvi Sheth joined the Board as
Non-Executive Director on 1 September 2023.
Apurvi has extensive executive experience spanning
over three decades across numerous well-known
international consumer brands in the food and
beverage industry. Having spent the majority of her
career in Asia and India, Apurvi brings her deep
consumer experience across diverse markets
including China, Japan, Australia, SEA and India to the
Intertek Board.
Talent mapping and succession planning
To ensure that the Board comprises a wide range of
skills, experience and attributes, the Committee
discusses and reviews extensively the experience,
skills and behaviours required of future Directors,
including the qualities of the individual required to
ensure the right fit with the culture and style of
Intertek.
In identifying suitable candidates to recommend for
appointment to the Board, the Committee considers
all candidates on merit, against objective criteria, and
with due regard for the benefits of diversity on the
Board to achieve the most effective Board possible.
During the year, we continued to monitor the
composition of the Board and its principal
Committees. Our discussions consider different time
horizons within our succession planning, including
contingency planning for sudden and unforeseen
departures, the orderly replacement of current Board
members and senior management, and a longer-term
view looking at the relationship between the delivery
of the Group strategy and objectives and the skills
needed on the Board now and in the future.
Membership and meeting attendance
During the year, we held five formal meetings.
Attendance of members at formal meetings is shown
in the table below. The Group Company Secretary
attends all formal meetings of the Committee and
the Committee invites the CEO and the EVP, Human
Resources to attend meetings when the subject
matter deems their presence appropriate.
Committee meeting attendance during
the year to 31 December 2023
Committee members1
Andrew Martin (Chair)
Graham Allan
Gurnek Bains
Tamara Ingram
Scheduled
meetings
eligible to
attend
Meetings
attended
5
5
5
5
5
5
5
32
1. Committee meeting attendance during the year to 31 December 2023
2. Tamara Ingram gave apologies for one meeting to attend a funeral and
one meeting due to other business commitments.
Role and key responsibilities
• Review the structure, size and composition of the
Board and its Committees.
• Identify, review and nominate a diverse pipeline of
candidates to fill Board vacancies1.
• Evaluate the balance of skills, independence,
knowledge, experience and diversity on the Board
and its Committees.
• Review the results of the performance evaluation
process that relates to the composition of the
Board and its Committees.
• Review the time commitment required from
Non-Executive Directors.
• Review succession plans regularly.
1. Neither the Chair nor the CEO participates in the recruitment of their
own successor.
The full Terms of Reference of the Committee,
which are reviewed annually, can be found on our
website: intertek.com/about/compliance-governance/
67
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Nomination Committee report Continued
Board effectiveness and training
The process and findings of the external evaluation
of the Board and the evaluations of each Committee
and Director are outlined on pages 62–63. An
evaluation can determine whether there are any gaps
in the skills and composition of the Board. Following
the last evaluation, it was concluded that the Board,
each Committee and each Director continue to
perform effectively and contribute to the long-term
sustainable success of Intertek. The outcomes
and the actions taken from the evaluations
undertaken in 2021, when it was last externally
facilitated, and 2023 are outlined on pages 62-63
and the feedback from the Board evaluation is
considered when determining the key skills required
for new Directors on the Board for the future.
As part of the annual Board evaluation, the
Committee’s performance was also evaluated by all
Committee members and it was shown that the
Committee continues to be able and effective in
discharging its duties in accordance with its Terms of
Reference and the requirements of the Code.
Independence, time commitments and
re-appointments
Based on its assessment for 2023, the Committee is
satisfied that, throughout the year, all non-executive
directors remained independent in character and
judgement in line with Provision 10 of the Code. On
appointment, the Board assessed and agreed that
Andrew Martin was independent in accordance with
the provisions of the Code.
The Board recognises the importance of all
Non-Executive Directors having the necessary
time to commit to the business of Intertek and,
upon appointment, their letters of appointment
stipulate the expected time commitment whilst
acknowledging that this may vary depending upon
the demands of the business and other events. All
Directors make themselves freely available as
required, even at short notice, in order to meet the
needs of the business.
Directors seek approval from the Board before
accepting any additional external appointments.
When assessing additional directorships, the Board
considers the number and nature of external
directorships already held by the individual and the
expected time commitment for those roles. During
2023, approval was given to Jez Maiden and Graham
Allan for new external appointments. Fuller details of
any conflicts of interest can be found on page 55.
Chair and Non-Executive Director appointment process
Skills and composition review
The Committee reviews the structure and composition of the Board, in turn considering the
balance of skills, experience, industry and geographic experience and knowledge, diversity,
independence, and cognitive and personal strengths of the current Board. When considering these
factors, the Committee is mindful of attributes that will assist in the delivery of the Group strategy.
Creating the brief
The Committee, following the skills and composition review, compiles a brief for the role which
outlines favourable characteristics and attributes that they desire the appointed individual to hold.
This brief is then shared with the chosen consultant who will utilise the brief to compile a list of
suitable candidates.
Longlist and shortlist review
The appointed consultant presents an initial longlist of candidates. This list is then shortlisted using
the brief as a guide to determine suitability.
Due diligence
Once the candidates are shortlisted, initial interviews are held and the shortlist reduced further.
The final candidates are invited to separate meetings with the Committee members and the CEO.
Recommendation
Once a preferred candidate is chosen, the Committee makes a recommendation to the Board to
appoint the individual.
68
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Nomination Committee report Continued
Board and Group Executive Committee
Number of Board
members
As at
31 December
Percentage of
the Board
Number of senior
positions on the
Board, CEO, CFO,
SID and Chair
Number in Group
Executive
Committee
As at 31 October
Percentage of
Group Executive
Committee
Diversity
2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Male
Female
Ethnicity
White British or other
White
Mixed/Multiple Ethnic
Groups
Asian/Asian British
Black/African/Caribbean/
Black British
Other ethnic group,
including Arab
7
5
9
–
3
–
–
7 58%
4 42%
64%
36%
9
75%
82%
–
2
–
–
–
–
25%
18%
–
–
–
–
4
–
4
–
–
–
–
4
–
13
5
19 72%
90%
2 28%
10%
4
12
14 67%
67%
–
–
–
–
–
5
–
1
–
–
–
6 28%
29%
–
–
–
1
5%
4%
Our policy on Board gender diversity, which is
available on our website and applicable to the
Board and its Committees, strongly supports
the principle of diversity and continues to
be mindful of the recommendations of the
FTSE Women Leaders and Parker Review.
We are pleased to report that during this financial
year we made progress against the Listing Rule
requirements targets for diversity. 42% of our Board
members are women, and we have three members of
the Board from an ethnic minority background. The
Committee is aware that the four senior positions
of CEO, CFO, SID and Chair are currently held by male
Directors. As part of the Board succession planning
over the coming 24 months, we will ensure that there
is a diverse portfolio of candidates considered.
The Committee continues to monitor the
overall inclusion and diversity of Intertek’s
leadership at Board and senior management
level, to ensure the broadest range of leaders
are considered for new appointments.
Prior to joining the Board, Apurvi Sheth disclosed
her current commitments and the time commitment
involved and the Board was satisfied that she could
provide sufficient time to discharge her duties as a
Director of Intertek. In addition to schedule Board
meetings, Kawal Preet and Apurvi Sheth have spent
additional time during 2023 for their induction into
the business, details can be found on page 64.
Apurvi Sheth is standing for initial election by
shareholders at the AGM, with all other Directors
standing for re-election at the AGM in May 2024
with the support of the Board (with the exception
of Gill Rider who is stepping down from the Board
at the conclusion of the AGM). In recommending
directors for election and re-election at the AGM,
the Committee has reviewed the performance
of each non-executive director and their ability
to continue meeting the time commitments
required, taking into consideration individual
capabilities, skills and experiences and any potential
conflicts of interest that have been disclosed.
Biographies for all the Directors are available
on pages 50–52
69
Diversity, equity and inclusion
We believe that diversity at Board level sets the tone
for diversity throughout the business. We promote
diversity in the broadest sense, not just gender
or ethnicity but also culture, skills, background,
regional and industry experience and other qualities
to truly reflect the diverse nature of our business.
The Nomination Committee monitors our talent
pipeline to ensure we have a diverse pool of talent
being developed at all levels. Maintaining a diverse
workforce is as important as diverse recruitment
and we continue to assess and promote this.
Intertek's Inclusion & Diversity policy eliminates
discrimination to ensure that employees are
treated fairly and feel respected and included
in the workplace, which is vital as our people
are core to the delivery of the best service to
customers and driving the strategy of Intertek.
Read more on pages 14–17
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report
Dear shareholder,
I am pleased to present this report, which is intended
to provide shareholders with insights into the work
we have done as a Committee to provide assurance
on the integrity of the Annual Report & Accounts for
the year ended 31 December 2023, together with
the effectiveness of the Group’s risk management
and internal controls framework in a year of
continued market volatility.
The Committee supports the Board by setting,
reviewing and monitoring Intertek’s policies and
procedures to ensure the independence and
effectiveness of the Internal and External Audit
functions, the integrity of financial and narrative
reporting, the Company’s internal control framework
and the adequacy of the processes that enable the
Board to assess the level of principal risks the
Company is prepared to take to achieve its long-term
strategic goals.
During 2023, the Committee’s primary focus centred
on the accuracy of the Group’s financial reporting,
having applied additional focus to assess the risk
management and the framework of internal financial
controls, together with the additional work carried
out to support the long-term viability statement.
The Committee met four times in 2023. As
Committee Chair, I meet with the
PricewaterhouseCoopers LLP (‘PwC’) lead audit
partner, the Group Audit Director and management
as appropriate ahead of meetings to discuss specific
items of focus to report to the Committee. After
each meeting, I also report back to the Board on the
Committee’s activities, the main issues discussed
and matters of particular relevance.
Throughout the year, the Committee also ensured
that separate meetings with the CFO, Group Audit
Director and the external auditor took place (the
latter without management present) in order to
provide an open forum for issues to be raised, and I
also held separate meetings, on behalf of the
Committee, with senior management within Intertek
and with PwC on a regular basis.
We advised the Board that we had reviewed the
process to ensure the 2023 Annual Report &
Accounts are fair, balanced and understandable and
provides the necessary information for our
shareholders and stakeholders to assess the Group’s
position, performance, business model and strategy.
The process of review is described in greater detail
on page 75. The Committee uses its collective
expertise, with input from the External Auditor, to
understand, and where appropriate, to challenge to
the approach and judgments made by management
in the treatment of financial matters and the
resulting disclosures within the financial statements.
The External Auditor performs its statutory audit, by
auditing the accounting records of the Company
against agreed accounting practices, relevant laws
and regulations. PwC’s audit report can be found in
Book three, pages 57–63.
On 20 July 2023, I received a letter from the FRC
following their review of Intertek’s 2022 Annual
Report & Accounts. The FRC stated that there were
‘no questions or queries’ in relation to those Annual
Report & Accounts1. The FRC did highlight certain
matters which Intertek were invited to consider in
relation to preparation of the 2023 Annual Report &
Accounts, and these matters have been dealt with in
our approach to disclosure this year.
1.
In line with FRC requirements, the letter provides no assurance that the
Annual Report and Accounts are correct in all material respects. The
FRC’s role is not to verify the information provided but to consider
compliance with reporting requirements.
Audit Committee report
The Committee's primary focus
centred on the accuracy of the
Group's financial reporting,
together with the ongoing
improvements in internal
control activities, risk and
compliance matters.
Jean-Michel Valette
Chair of the Audit Committee
70
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
The Committee has also continued to monitor the
heightened scrutiny on the external reporting of ESG
and, more specifically, sustainability and the effects
of climate change on companies. As part of the Task
Force on Climate-related Financial Disclosures
compliance, we have reviewed and approved
management’s assessment of the physical and
transitional environmental risks and opportunities to
the Group.
The annual Board Effectiveness evaluation, which
was conducted internally this year, assessed our
performance as a Committee and I am pleased that it
concluded that we operate effectively and that the
Board takes assurance from the quality of our work.
As Chair of the Committee, I shall make myself
available to shareholders, especially at the AGM, to
facilitate the answering of any questions that they
may have around the scope of the Committee’s
responsibilities as a whole, the Committee’s activities
throughout the year, and any other questions that
may arise from this report.
Membership and attendance
During 2023, the composition of the Committee met
the requirements of the Code. The Board is satisfied
that the Committee members bring a wide range of
financial experience across various industries and all
members have competence relevant to the sectors in
which Intertek operates, with recent and relevant
financial experience.
An overview of the background, knowledge and
experience of the Committee Chair and each of the
Committee members can be found on pages 50–52
and in the Notice of the AGM.
Committee meeting attendance during the
year to 31 December 2023
Committee members
Jean-Michel Valette (Chair)
Lynda Clarizio
Jez Maiden
Gill Rider
Scheduled
meetings
eligible to
attend
Meetings
attended
4
4
4
4
4
4
4
31
1
Gill Rider was unable to attend one meeting due to other business
commitments.
Jean-Michel Valette
Chair of the Audit Committee
Performance evaluation
The Audit Committee conducted a self-assessment
of its performance using a comprehensive
questionnaire that covered various aspects of its role
and responsibilities. The questionnaire results were
analysed and discussed by the Committee members,
reviewing the Committee's functionality, members’
individual strengths and identified any additional
training that may be beneficial.
The assessment showed that the Committee
operated effectively. The Committee receives
high-quality meeting materials and the diverse
backgrounds and skills among the members, and
relevant subject matter expertise and business
acumen enable members to discharge their duties in
accordance with the Terms of Reference and the
requirements of the Code.
Committee responsibilities and how we met
them in the year
The Committee has specific responsibilities
delegated to it by the Board and the full Terms of
Reference of the Committee can be found at
intertek.com. The terms of reference are reviewed
annually. The Group Company Secretary, the audit
partner and members of his team attended all
meetings held during the year. At the invitation of
the Committee, the Chair, CEO, CFO, Group Financial
Controller and the Group Audit Director attended
meetings. Other members of senior management
were invited to attend the meetings as necessary.
The business of the Committee is linked to the
Group’s financial calendar of events and the
timetable for the annual audit.
Financial reporting
A principal responsibility of the Committee is to
monitor the integrity of the financial statements of
the Group, having regard to the matters
communicated to us by the external auditor, and to
measure the performance of the Group against the
financial goals of our strategy. This is key for our
shareholders and other stakeholders in order for
them to understand the financial strength of the
business.
In order to fulfil this responsibility, we reviewed the
full-year and half-year results, as well as any formal
announcements relating to the Group’s financial
performance, prior to release, and recommended
their approval to the Board.
71
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
February
May
July
December
Audit Committee report Continued
Committee's activities during 2023
Focus
Financial reporting:
•
Full-Year and Half-Year Results and accounting judgements
•
Annual Report & Accounts
•
Going concern assessment
•
Viability statement
Climate Change/TCFD reporting
Group Risk Process and Viability Statement basis of preparation for YE 31 December 2023
Internal controls over financial reporting
Core Mandatory Control and Assurance Map update
Managed shared audit
Internal audit:
•
Internal audit report
•
Internal audit plan for 2024 and Internal Audit Charter
•
Internal audits coverage and analysis
•
Internal Assessment of Internal Audit effectiveness
•
External Assessment of the Internal Audit effectiveness
External audit:
•
PwC report to the Committee
•
PwC audit plan and strategy
•
PwC interim review findings
•
Audit and non-audit fees
•
Effectiveness
•
Independence and re-appointment
72
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
2023 Audit plan
During the year the Committee evaluated PwC’s
Group audit scope for 2023. The year-end audit plan
was based on agreed objectives, with the audit
focused on areas identified as representing
significant risk and requiring judgement. In order to
manage costs and ensure that the Group maintains
audit relationships outside the ‘Big 4’, Mazars
undertakes some of the Group audit work under the
direction of PwC. It is principally responsible for the
statutory audit of certain non-material group
subsidiaries, but also undertook specific audit
procedures for certain component entities that were
within PwC’s Group audit scope for 2023. Mazars
reported independently to PwC on this work and the
work was directed, supervised and reviewed by PwC.
Going concern and viability statement
We received a detailed report from management with
the approach taken to the going concern statement
and viability statement which included the projected
funding requirements, the facilities available to the
Group, the sensitivity models used including an
illustrative severe yet plausible downside scenario of
a reduction of 30% to the base profit forecasts and
the corresponding impact to cash flow forecasts in
both 2024 and 2025, and the review of principal risks
and uncertainties undertaken.
The Committee reviewed the paper and challenged
the assumptions with management and after making
diligent enquiries, the Directors have a reasonable
expectation, based upon current financial projections
and bank facilities available, that the Group has
adequate resources to continue in operation and
meet its liabilities as they fall due over the period.
This conclusion is based on a review and an
assessment of the levels of facilities expected to be
available to the Group, based on levels of cash held,
Group Treasury funding projections, and the Group’s
financial projections for a period to 31 December
2025.
The undrawn headroom on the Group’s committed
borrowing facilities at 31 December 2023 was
£664.3m (2022: £707.3m). The maturity of our
borrowing facilities is disclosed in note 14 of the
financial statements in Book three with repayment
of US$125m of senior notes required by
31 December 2024. The Group Treasury funding
projections forecast these to be repaid using existing
facilities following the issuance of €185m of senior
notes issued in December 2023.
Following the recommendation of the Committee,
the Board continues to consider it appropriate to
adopt the going concern basis in preparing the
Group’s financial statements (as disclosed in note 1
of the financial statements in Book three, page 7)
and has approved the long-term viability statement
as set out in Book one, pages 52 and 53.
External audit
Auditors’ appointment
The appointment, review and relationship with the
external audit firm and the annual review of the
effectiveness of the external audit is a responsibility
that is delegated to the Committee.
A transparent and independent audit tender process
was completed in 2015 and PwC have been the
Group’s auditors since May 2016. In line with current
regulation, the Group is required to put its external
audit process out to tender again in 2025–2026.
Graham Parsons serves as the PwC audit partner
responsible for the Group audit, a role he assumed in
May 2021.
The Committee monitors and reviews the
independence and objectivity of the external auditor
and reviews the effectiveness of the external audit
process. The Committee also considers and makes
recommendations to the Board, to be put to
shareholders for approval at the AGM, in relation to
the appointment, reappointment and removal of the
Group’s external auditor. It ensures that at least once
every ten years the audit services contract is put out
to tender to enable us to compare the quality and
effectiveness of the services provided by the
incumbent auditor with those of other audit firms.
The independence of the external auditor is critical
for the integrity of the audit. The Committee sought
confirmation from the auditor that they are fully
independent from the Group’s management, are free
from conflicts of interest and have assessed the
nature and level of non-audit fees paid to PwC and
have determined that PwC are fully independent.
During the year, the Mazars integrated partnership
(‘Mazars') were appointed to audit approximately
3.9% of the Group’s in-scope components, measured
as a proportion of revenue.
73
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
Following this review, the Committee considered in
detail the feedback received from a selection of
Intertek personnel, including Committee members,
Group functions, regional finance teams and country
finance managers. The feedback scores from the
survey demonstrated a decrease in two of the three
sub-categories compared to the prior year, namely
fieldwork and reporting, with an increase in the
planning category. The overall perception of PwC’s
effectiveness remains positive, with 96% of
respondents either agreeing or mostly agreeing with
the statements outlined in the questionnaire, largely
in line with prior year (2022: 97%).
Overall, there continues to be a strong collaborative
approach ensuring year-round communication and
engagement with opportunity to better integrate IT
and other workstreams. The audit findings and the
areas to improve were discussed at the May 2023
Committee meeting and PwC effectively addressed
questions and challenges provided by Committee
members.
The Committee concluded, at the meeting held in
May 2023, that PwC remained independent and that,
overall, PwC had completed a robust and fit-for-
purpose audit process across the Group with a
satisfactory level of resources.
The effectiveness of the 2023 audit of the Group
will be reviewed by the Committee in May 2024.
Audit and non-audit fees
The Terms of Reference of the Committee include
ensuring the continued independence and objectivity
of the Group’s external auditors. This is achieved
through:
• the annual approval of the policy for the
engagement of external auditors for audit and
non-audit services;
• setting limits for non-audit spend for the external
auditors;
• an annual review of the Group Auditor’s
performance in conducting the external audit
(presented at the May 2023 Audit Committee
meeting);
• a five-year maximum tenure period for the external
audit partner; and
• where appropriate, audit tendering and rotation.
The Group has set out a policy on the provision of
non-audit work by the external auditor consistent
with the 2019 Ethical Standard issued by the FRC,
and it is designed to ensure that the provision
of such services does not create a threat or
compromise the external auditor’s independence
and objectivity. The policy outlines in detail the
services that the external auditor cannot provide
including tax services and services that involve
playing any part in the management or decision-
making of the audited entity amongst others. It
identifies certain types of engagement that the
external auditor shall, subject to the audit cap, be
permitted to undertake, including with respect to
audit-related services such as reporting required
by law or regulation to be provided by an auditor,
reviewing interim financial information, reporting
on regulatory returns, reporting to a regulator on
client assets and reporting on government grants.
With respect to non-audit services, the policy
outlines the services that can be provided by the
external auditor as required by law or regulation
and are exempt from the non-audit fee cap.
External auditor effectiveness and quality
The Committee conducts an annual review to assess
the independence and objectivity of the external
auditor and the effectiveness of the audit as part of
the year-end process. This process is conducted in
three parts as outlined below:
1. PwC presents to the Committee its approach to
safeguarding and maintaining the quality and
independence of their audit of the Group and their
auditors, including addressing any risks they face in
maintaining audit quality across their network. This
is an extensive report covering all aspects of the
audit from the scope of work, reporting the
outcomes of findings, the key audit matters, fraud
and investigations, intercompany transactions,
treasury, key risks, going concern and the IT
environment. Each aspect is reviewed and debated
with the auditors. The Committee was satisfied
that the audit was extensive, sufficiently
challenging and robust.
2. The views of management and the Directors on
PwC’s service, level of challenge, and application of
professional judgement are obtained via a
questionnaire, and subsequent follow up as
necessary. The feedback is then presented to the
Committee.
3. The key findings and recommendations from both
processes, together with any form of appropriate
external evaluation such as feedback from
shareholders and the FRC Audit Quality Inspection
Report then form the basis of the assessment of
PwC’s effectiveness, together with the
Committee’s experience of dealing with PwC
during the year.
The responses to the annual appraisal questionnaire
were collated and incorporated into the planning
process for the following areas: Planning, Fieldwork
and Reporting.
74
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
In the event that an engagement for non-audit
services arises, the policy is designed to ensure that
the external auditor is only appointed where it is
considered to be the most suitable supplier of the
service and the necessary prior approvals have been
given in accordance with the policy.
The Committee annually reviews and re-approves
the framework of permitted non-audit services as
set out in the policy, taking into account any changes
in legislation and best practice. The Committee
reviewed the policy in 2023 and no major changes
were made. PwC also provides an update on the
spend for non-audit services twice a year. For 2023,
the Committee pre-approved a total non-audit spend
of £234,000 (2022: £234,000).
As per the policy, all non-audit services must be
approved by the CFO, and in the event that the
pre-approved limit is exceeded, the Committee Chair
and the CFO have to approve an increase to the
pre-approved limit. In 2023 this process operated
effectively.
A summary of the fees paid for non-audit services is
set out below. The majority of the non-audit fees
related to a review by PwC of the Interim Results
announcement, which is deemed a non-audit service.
This was considered appropriate as PwC also audit
the full-year results.
Further information is contained in note 4 to the
financial statements in Book three, page 12.
Statement of compliance with the Competition
and Markets Authority (‘CMA’) Order
The Committee considered that the Company has
complied with the Statutory Audit Services for Large
Companies Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit Committee
Responsibilities) Order 2014 published by the CMA
on 26 September 2014, including with respect to the
Audit Committee’s responsibilities for agreeing the
audit scope and fees and authorising non-audit
services.
Internal audit
The Group has an Internal Audit function, whose
activities are overseen by the Committee, which
provides assurance over compliance with the Group’s
framework of financial Core Mandatory Controls
('CMCs').
The Committee monitors and reviews the
effectiveness and resources of the Internal Audit
function. To this end, the Committee approves the
Internal Audit programme and charter for the year.
The Committee reviews the internal audit reports
and monitors management’s responsiveness to the
findings and recommendations of the Group Audit
Director, as well as approving the appointment and
removal of the Group Audit Director as appropriate.
When reviewing the summary findings, management
responses, progress against audit recommended
improvement plans and average compliance scores,
the Committee were satisfied that the Internal Audit
function continued to work effectively and focus its
activities in the areas with most need.
Independent review of effectiveness
An independent review of effectiveness was
undertaken by Grant Thornton in 2023. Such reviews
are generally carried out every three years but, given
dislocations due to Covid-19, the review was
completed four years after the previous review in
2019. The annual internal effectiveness review was
also completed in 2023.
Grant Thornton’s approach considered four key areas:
Performance, Planning, People and Positioning. The
review concluded that the Internal Audit function is
valued and their role in defining expectations and
improving compliance with the financial CMCs is
widely acknowledged. They further concluded that
the function exhibits good practices, in particular in
the continuous improvement agenda of the team, as
well as their innovative processes and reporting. The
report also highlighted that the remit of the Internal
Audit role could evolve and expand in the future.
The Committee satisfied itself that the quality,
experience and expertise of the function is
appropriate for the business.
Fair, balanced and understandable
In February 2024, the Committee reviewed the 2023
Annual Report & Accounts and concluded that, taken
as a whole, was fair, balanced and understandable
and provided the information necessary for
shareholders to assess the Group’s position,
performance, business model and strategy, and the
potential impact on forward-looking assumptions
supporting going concern and viability assessments.
In its assessment, it considered that the following
had been carried out and this formed the basis of its
recommendation to the Board:
• pre-year-end discussions held with the external
auditor in advance of the year-end reporting
process;
• pre-year-end input provided by the senior
management team and from corporate functions;
• a verification process dealing with the factual
content of the reports to ensure accuracy and
consistency;
• comprehensive review by the senior management
team to ensure overall consistency and balance;
and
• review conducted by external advisers and the
external auditor on best practice regarding the
content and structure of the Annual Report &
Accounts.
Total non-audit fees
–
–
–
audit-related services
tax services
other non-audit services
Audit fee
% of audit fee
75
2023
£m
0.2
0.2
–
–
5.8
3%
2022
£m
0.2
0.2
–
–
5.9
3%
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
Whistleblowing and fraud
We reviewed the adequacy and security of the
Group’s arrangements for its employees and
contractors to raise concerns, in confidence, about
possible wrongdoing in financial reporting or other
matters ensuring that these arrangements allow
proportionate and independent investigation of such
matters and appropriate follow-up action.
The whistleblowing hotline is well-publicised and can
be used by all employees, contractors and others
representing Intertek, or by third parties such as our
customers or people who are affected by our
operations. This whistleblowing hotline is run by an
independent, external provider. It is multi-language
and is accessible by phone and by email 24 hours a
day. Further information on the whistleblowing
hotline can be found on page 42.
In addition, we review the Group’s systems and
procedures for detecting fraud and the prevention of
bribery and receive regular reports on non-
compliance and keep under review the adequacy and
effectiveness of the Group Compliance function.
Internal control and risk management systems
The Board ultimately reviews the Group’s risks,
controls and compliance and mitigation actions. The
Committee is responsible for reviewing the adequacy
and effectiveness of that risk framework. We have an
integrated approach to getting assurance that our
risks are being appropriately and effectively
identified and addressed. Further information on how
Intertek has implemented an end-to-end integrated
approach to risk, control and compliance is outlined
on page 65.
‘Doing Business the Right Way’ is at the heart of
what we do and continues to be a key enabler of our
AAA strategy. The Intertek CMCs are an integral part
of ‘Doing Business the Right Way’, and provide the
mechanism by which we define, monitor and achieve
consistently high standards in our control
environment throughout the whole organisation. At
the end of the year, the Committee undertook a
review of the effectiveness of the CMCs and
Assurance Map to ensure that they continued to be
fit for purpose. Where non-compliances with the
current CMCs were identified in the 2023 internal
audit review process, remediation plans have been
put in place. For 2024, the effectiveness of the
process was reviewed and there were additional
controls introduced based on risks and issues
highlighted by the Group’s Internal Audit and
Compliance assurance programmes and based on
other risk indicator data and outputs including the
reporting, review and corrective actions of Hotline
reports.
In order to provide assurance that the Intertek
controls and policy framework is being adhered to, a
self-assessment exercise is undertaken across the
Group’s global operations. This exercise is reviewed
and refreshed each year to align with the updated
control framework and to support the continued
development of the Group’s control environment.
An online questionnaire requesting confirmation of
adherence to controls: financial, operational, HR and
IT is sent to all Intertek operations. Where corrective
actions are needed, the country is required to provide
an outline and a confirmed timeline. The results are
used as an input for the Internal Audit and
Compliance Audit assurance work for 2024.
Self-assessment responses are consolidated for
review at a regional level, with further review and
sign-off of the consolidated self-assessments in the
regional risk committees, before a final consolidated
CEO and CFO review. A final summary assessment is
provided to the Committee. The self-assessment
exercise has been reviewed during the year to ensure
global coverage and to reflect Intertek’s operational
and financial structure, and in order to enhance the
alignment of the self-assessment to the assurance
process.
We annually review and approve the statements to
be included in the Annual Report & Accounts to
ensure they remain relevant to the Group's strategy
and operations as well as complying with any
regulatory requirements. A detailed verification
programme also provides assurance to the
Committee and the Board when checking that all the
statements made in the Annual Report & Accounts
are accurate. Intertek’s Manual of Accounting Policies
and Procedures is issued to all finance staff giving
instructions and guidance on all aspects of
accounting and reporting that apply to the Group.
The Committee can confirm that it reviewed the
Group’s internal controls and risk management
systems and concluded that there was an effective
control environment in place across the Group during
2023, and up to the date on which these financial
statements were approved. No significant failings or
weaknesses were identified.
76
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Audit Committee report Continued
During the year, the Committee reviewed and
considered the following estimates and areas of
judgement to be exercised in the application of
the accounting policies:
Claims
From time to time, the Group is involved in various
claims and lawsuits incidental to the ordinary
course of business. The Committee considered the
claims provision which reflects the estimates of
amounts payable in connection with identified
claims from customers, former employees and
others. The Committee noted that once claims
have been notified, the finance teams liaise with
the business to determine whether a provision is
required, based on IAS 37 Provisions, Contingent
liabilities and Contingent assets (‘IAS 37’).
The level of provision is subsequently reviewed on
a regular basis with the Group General Counsel,
taking into account the advice of external legal
counsel. The Committee, following assurance from
management and review of the position by the
external auditors, considered and agreed that the
claims provision, and associated disclosures, were
appropriate given the size and status of claims
reported.
Taxation
The determination of profits subject to tax
is calculated according to complex laws and
regulations, the interpretation and application
of which can be uncertain. In addition, deferred
tax assets and liabilities require judgement in
determining the amounts to be recognised,
with consideration given to the timing and level
of future taxable income. The main areas of
judgement in the Group tax calculation are the
expected central tax provisions for the full year,
including provisions related to transfer pricing risk,
and the recognition of the UK deferred tax asset.
Twice a year, the Committee receives a report from
management providing an evaluation of existing
risks and tax provisions which is reviewed by the
Committee. The Committee also considered
reports presented by the external auditors before
determining that the levels of tax provisioning were
appropriate.
the year, and after seeking views from the
external auditors, agreed the disclosure in note 9
in Book three, pages 20–22.
Revenue Recognition
IFRS 15 Revenue from Contracts with Customers
requires an entity to recognise revenue in a way that
shows the transfer of goods/services promised to
customers is an amount that reflects the expected
consideration in return for transferring control of
those goods or services to the customer.
The Committee reviewed the work completed
regarding revenue and, taking into account the views
of the external auditors, agreed that the treatment
was appropriate.
Acquisitions and fair value accounting
The Committee was advised of the approach taken
to the acquisitions made in 2023 where the related
fair value was recognised on a provisional basis. Such
provisional amount is subsequently finalised within
the 12-month measurement period, as permitted by
IFRS 3. Details of the acquisitions in 2023 are set out
in note 10 in Book three, page 23.
The Committee, following assurance from
management and review of the position by the
external auditors, was satisfied that the treatment
was appropriate.
Impairment of Goodwill and other acquired
intangible assets
The Group is required to make judgements to estimate
the fair value of assets and liabilities acquired; in
particular, the amounts attributed to intangible assets
such as titles, brands, acquired customer lists and
associated customer relationships. These judgements
impact the amount of goodwill recognised on
acquisitions. As outlined in note 9 in Book three, the
Group has £1,385.8m of Goodwill which has arisen on
acquisitions. An impairment assessment is required at
least annually in respect of this amount.
The Committee noted the update as at the year-end
and, taking into account the acquisitions made during
Accounts receivable and accrued income
The Group takes a prudent approach to provisioning
of accounts receivable and accrued income
balances in line with IFRS 9 Financial Instruments.
The Committee noted the update as at the
year-end and, considering the views of the
external auditors, agreed that the Group’s
provision was appropriate.
Consideration of Climate Change
Mandatory TCFD reporting for premium listed
entities has driven significant momentum
regarding climate change related disclosures.
The Group has set out its consideration
of climate change in respect of an impact
on the financial reporting judgements and
estimates arising from our assessment of
climate change on the Group as a whole.
The Committee reviewed the approach taken to
consider the impact of climate change and the
disclosures in Book one, pages 58–66 and taking
into account the feedback from the external
auditors agreed the approach taken and the
related disclosures.
Pensions
The Group operates a number of post-employment
plans. In most locations, these are defined
contribution arrangements. However, there are
material defined benefit schemes in the United
Kingdom and Switzerland.
Having considered advice from external actuaries
and assumptions used by companies with
comparator plans, the Committee agreed that the
assumptions used to calculate the income
statement and balance sheet assets and liabilities
for post-employment plans were appropriate
(see note 16 in Book three, pages 35-38).
Significant issues considered by the Committee
In preparation for each year-end, the Committee
reviews the significant accounting policies, estimates
and judgements to be applied in the financial
statements and discusses their application with
management. The external auditor also considers the
appropriateness of these assessments as part of the
external audit. The Committee’s views, comments
and their insights are used to inform the processes
and approach taken by management in all areas of
significant risk, thus facilitating a Group-wide
consistent and prudent approach.
In accordance with the Code, the external auditor
prepares a report for the Committee on both the
half-year and full-year results, which summarises
the approach to key risks in the external audit and
highlights any issues arising out of their work on
those risks, or any other work undertaken on
the audit.
Following reviews and discussions throughout the
year of all the relevant papers presented and after
considered discussion with management and the
external auditors, the Committee had an
understanding of the business rationale for
transactions and how they were being recorded and
disclosed in the financial statements, and therefore
agreed that the estimates and areas of judgement
exercised by management were appropriate.
77
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report
Dear shareholder,
I am delighted to present our Remuneration Report
for the year ended 31 December 2023.
Business context
This year the Group has delivered a strong financial
performance in revenue, margin, EPS, cash and
ROIC. There has been a higher demand for our ATIC
solutions, which has enabled us to deliver the highest
like-for-like revenue growth in the last ten years.
This year the business has made two successful
acquisitions in Controle Analítico and PlayerLync.
The acquisitions we made the previous years with
SAI, JLA and CEA have been successfully integrated
into the Group and performed well. We have made
progress on margin, as we benefitted from our
pricing and productivity initiatives, and we have
delivered a robust free cash flow performance.
Wider workforce
Across the Group our employees have led by
example in every operation, showing their passion,
commitment and innovation. Our people bring
exceptional technical skills, expertise and energy
to our business and our focus on their health,
safety and well-being is critical to our continued
success. Intertek is compliant with minimum wage
and mandatory social contributions requirements
in all jurisdictions where we operate, and, given
the geographic spread of the Group’s operations,
employee reward is managed at local level to enable
local management to deliver the right customer and
employee experience. This year, we have continued
to focus on the wellbeing of our employees through
our Kindness programme, which supports our
colleagues’ wellbeing and ensures a safe and healthy
work environment in which they can prosper.
With regards to salary budgets, we continue to
be mindful of the challenges our employees are
facing with the ongoing inflation and cost-of-living
pressures across the world. In making salary budget
decisions, the Group balanced the challenges our
employees are facing with the wider approach to
cost discipline. Across the UK, the salary increase
has been agreed at 3.4%, with the UK representing
circa 5% of Intertek’s employee population.
Earlier this year we launched our exciting Intertek
AAA differentiated growth strategy which will
unlock the significant growth opportunities as
the Total Quality market accelerates. The key
highlights of our 2023 performance are:
• Revenue growth of 7.1% at constant currency
driven by like-for-like revenue growth of 6.2%. This
is the highest in the last ten years.
• Margin increase of 60bps at constant currency.
• Adjusted diluted EPS growth of 11% at constant
currency.
• All time high operating cash generation of £749m.
• Strong balance sheet with reduction of net debt by
£127m giving us the ability to invest in growth.
Remuneration Committee report
The Board is confident that
remuneration at Intertek reflects
the strong performance of the
business in 2023.
Gill Rider
Chair of the Remuneration Committee
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Pay for performance in 2023
There was no change to our annual incentive
framework for 2023, which continues to support
the Group’s strategy for growth and our purpose of
“Bringing Quality, Safety and Sustainability to life”.
As such, 70% of the annual incentive was based on
a matrix of Revenue and Adjusted Operating Profit
Growth, 15% on ROIC and 15% on Carbon Emissions.
As set out earlier in the Annual Report & Accounts,
in 2023, Intertek has delivered strong financial
performance revenue growth, margin progression,
EPS, cash and higher ROIC. The Group also exceeded
the targets set on carbon emissions. Based on the
performance targets set at the start of the year,
this would have resulted in a formulaic outcome
of 76.44% of maximum. Taking into account
that a proportion of the over-performance on
the carbon emissions metric was driven through
accelerated capex investments, the Committee, on
recommendation from the Management, scored the
metric at target, which reduced the 2023 bonus
outcome to 68.94%. The Committee felt that the
overall out-turn was in keeping with the overall
performance of the business in the year. 50% of this
award will be deferred into shares for three-years.
The majority of employees in the whole Group have
an annual incentive award that is linked to the same
metrics that we use throughout the business.
Our 2021 long-term incentive award was based
on three equally weighted metrics; Earnings Per
Share, Adjusted Free Cash Flow and Return on
Invested Capital, aligned with the Group’s strategy
for sustainable growth. Over the longer term,
the three-year performance of the Group has
delivered EPS CAGR growth of 12.5%, Adjusted
Free Cash Flow of £1,231m and three year
average Return on Invested Capital of26.7%. This
has resulted in a payout under the 2021 long-
term incentive award of 100% of maximum.
When determining incentive outcomes the
Committee exercised independent judgement,
taking into account a number of internal and
external considerations to determine whether
the results felt appropriate, including:
79
• The introduction of the Intertek AAA
differentiated growth strategy and the strategic
actions taken by the Board to seize the significant
growth opportunities ahead;
• The share price performance in the year and the
implementation of our progressive dividend policy,
which rewarded our shareholders with a £120.2m
payout for the final 2023 dividend;
• The successful acquisitions in high growth, high
margin segments which have been embedded into
the Group and are performing well; and
• The overall stakeholder experience over the year,
including the experience of our clients, employees
and communities.
It was the view of the Committee that the incentive
outcomes appropriately reflected performance in
the period and the wider shareholder experience,
and the Remuneration Policy operated as intended
and therefore no discretion was applied.
Board changes
As previously announced, Jonathan Timmis ceased to
be a Director on 17 March 2023. His departure terms
were consistent with our Directors’ Remuneration
Policy. Given the change to the organisational
structure and his good performance, Jonathan
was treated as a good leaver for incentive plan
purposes. Outstanding incentive awards will remain
subject to performance and will be pro-rated for
time. Where appropriate, outstanding awards are
also subject to forfeiture provisions, if Jonathan
were to take up alternative employment prior
to the release date of those awards. Jonathan’s
2023 LTIP award lapsed in full. Full details of
Jonathan’s remuneration arrangements for his
departure are set out on pages 100-101.
end of the year the Committee undertook a further
review of Colm’s salary arrangements. Reflecting on
Colm’s strong performance since his appointment
the Committee determined that the salary for
Colm should be increased to £500,000. Whilst the
Committee believes that this salary level is more
reflective of Colm’s performance as a strong finance
leader, the Committee notes that this continues to
represent a discount to his predecessor and is below
the median level of our benchmarking comparator
group. We will continue to review this positioning.
Colm’s pension arrangements are in line
with the wider UK workforce and his annual
incentive and long-term incentive opportunity
have been set in line with his predecessor.
As the role was an internal appointment, there was
no buy-out award to be made on appointment.
2024 Directors’ Remuneration Policy
In line with the normal three-year cycle, we will
be submitting a new Directors’ Remuneration
Policy for shareholder approval at our 2024
AGM. In anticipation of this, the Remuneration
Committee undertook a detailed review of
the current Remuneration Policy during the
year. Following a comprehensive review, the
Remuneration Committee concluded that our
current Remuneration Policy, which is centred
on rewarding the Executive Directors where
performance is delivered, remains fit-for-purpose
and continues to support the execution of the
Group’s strategy for growth and the generation of
sustainable returns for our shareholders. As such,
no material changes are being proposed to the
structure of the package nor the maximum award
opportunities. The ongoing Remuneration Policy will
therefore continue to comprise of the following:
We were delighted to appoint Colm Deasy as CFO
with effect from 17 March 2023. On appointment
his base salary was set at £425,000, representing
a significant discount to his predecessor. The
Committee deliberately set Colm’s salary at a prudent
level as the Committee noted that this was Colm’s
first appointment as a public company CFO and it was
the Committee’s intention to keep Colm’s salary level
under review as he built experience in the role. At the
• Fixed remuneration, including base salary, cash in
lieu of pension and benefits.
• An annual bonus, which is based predominantly
on financial metrics linked to Operating Profit,
Revenue Growth and Return on Invested Capital. In
line with changes made for 2022, a proportion of
the award will be measured against ESG based
metrics. 50% of the bonus will continue to be
delivered in shares, with 50% paid in cash.
• A traditional long-term incentive plan, under
which performance is measured over a three-year
period, with no release of value until year five.
Performance metrics for the plan remain well
aligned to our Intertek AAA differentiated growth
strategy, comprised of Earnings Per Share; Adjusted
Free Cash Flow; and Return on Invested Capital.
Our Remuneration Policy can be found on pages
81-83 of this report.
The Remuneration Committee is mindful of the
expectation of some of our shareholders that the
pension arrangements for the CEO should be aligned
with the wider UK workforce. As such, as part of
our previous Remuneration Policy, we agreed with
the CEO to reduce his pension contribution from
30% of base salary to 5% of base salary (which is
the level of the majority of the UK workforce) over
five years. Taking into account the reductions made
over the previous three years, the CEO’s pension
arrangements will be aligned to the wider UK
workforce rate within this 2024 Remuneration Policy.
Implementation of our
Remuneration Policy in 2024
With regard to salary, the Committee has awarded
the CEO a 3.0% salary increase, which is below the
wider UK workforce increase of 3.4%. As noted
earlier, the CFO salary has been reviewed, taking into
account his strong performance since appointment.
His new salary continues to be the median of our
benchmarking comparator group and will be kept
under review as he continues to grow in the role.
The maximum annual incentive opportunity will
remain at 200% of salary for the CEO and CFO,
in line with the Remuneration Policy. The annual
incentive will continue to be based 85% on financial
metrics and 15% on ESG, with no proposed change
to the annual incentive measures which the
Committee believes continue to align with our AAA
differentiated growth strategy and our purpose of
“Bringing quality, safety and sustainability to life”.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
The Board is confident that remuneration at Intertek
continues to be aligned to our shareholder interests
and carefully designed to support our strategy. I look
forward to your support at our forthcoming AGM.
Yours sincerely,
Directors’ Remuneration Policy
In line with the three year Policy cycle, the
Remuneration Policy for Executive and Non-
Executive Directors will be presented to the
AGM to be held on 24 May 2024. The Policy was
last approved by shareholders at the AGM on
26 May 2021. There is no substantial change
proposed to the Remuneration Policy this year.
The full Policy is set out on pages 81-83.
Each year the Committee approves the overall
reward strategy for the Group and sets the
individual remuneration of the Executive
Directors and certain senior management. The
Committee reviews the balance between base
salary and performance-related remuneration
against the key objectives and targets so as to
ensure performance is appropriately rewarded.
This also ensures outcomes are a fair reflection
of the underlying performance of the Group.
Gill Rider
Chair of the Remuneration Committee
As a global service business, our success is critically
dependent on the performance and retention of
our key people around the world. Employment costs
represent the major element of Group operating
costs. As a global Group, our pay arrangements
take into account both local and international
markets and we operate a global Remuneration
Policy framework to achieve our reward strategy.
Our benchmark peer groups for the majority of
our employees consist of international industrial
or business service organisations and similar-
sized businesses. For our more senior executives
we base our remuneration comparisons on a
blend of factors, including sector, job complexity,
location, responsibilities and performance, whilst
recognising the Company is listed in the UK.
We believe that a significant proportion of
remuneration for senior executives should be related
to performance, with part of that remuneration
being deferred in the form of shares and subject to
continued employment and longer-term performance.
We also believe that share-based remuneration
should form a significant element of senior
executives’ compensation, so that there is a strong
link to the sustained future success of the Group.
In determining the Remuneration Policy, which
was approved in 2021 and will be submitted
for approval in 2024, the Committee followed
a robust process which included discussions on
the content of the Policy at two Remuneration
Committee meetings. The Committee considered
input from management. Any conflicts of interest
were managed with decisions being taken by the
members of the Remuneration Committee with the
support from our independent advisers, as well as in
the context of best practice and guidance from our
major shareholders and the proxy advisory bodies.
Policy overview
We continue to focus on ensuring that our
Remuneration Policy is appropriate for the nature,
size and complexity of the Group, encourages our
employees in the development of their careers, is
aligned with the Company’s strategy and is in the
best interests of the Company and its stakeholders.
It is directed to deliver continued sustainable growth.
Our remuneration strategy is to
• align and recognise the individual’s contribution
to help us succeed in achieving our AAA
differentiated strategy for growth;
• attract, engage, motivate and retain the best
available people by positioning total pay and
benefits to be competitive in the relevant market
and in line with the ability of the business to pay;
• reward people equitably for the size of their
responsibilities and performance; and
• motivate high performers to increase shareholder
value and share in the Group’s success.
Long-term incentive awards will be granted to the
CEO and CFO in 2024, with no changes to the award
sizes (CEO: 300% of salary; CFO: 200% of salary) or
performance measures which continue to support
the Group’s strategy for sustainable growth. Details
of the underlying targets for the 2024 long-term
incentive awards are set out on pages 89-90.
Alignment with strategy and purpose
Our Core Purpose of “Bringing Quality, Safety and
Sustainability to life” continues to be central to
everything we do. Across the organisation our
people are excited by the opportunity we have
to deliver our Purpose every day. Our Purpose is
supported by our Values. We pride ourselves in living
our Values, with integrity and fairness sitting at
the heart of all our decisions. We believe that our
Remuneration Policy and its implementation are
value-based, and will create sustainable momentum
for the business, our people, our customers and
our shareholders in the years to come, whilst also
supporting the sustainable delivery of Intertek’s
AAA differentiated growth strategy to unlock the
significant value growth opportunity ahead.
Looking forward
I will be stepping down as Chair of the Remuneration
Committee following the conclusion of the 2024
AGM, and consequently this will be my final report
to you before handing over to Graham Allan who has
been a member of the Remuneration Committee
since 2017. I would like to take this opportunity to
thank our shareholders and their representatives
for the time taken to engage with us during my
tenure as Chair and for the valuable insight and
feedback they have provided. I know that Graham
looks forward to continuing this transparent and
open dialogue when he formally takes over as Chair.
Both Graham and I will be attending the AGM.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Remuneration Committee report Continued
Remuneration Policy for Directors
The following table sets out the Remuneration Policy for Directors.
Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Base salary
To attract and retain high
performing Executive
Directors to lead the Group.
The Committee normally reviews salaries annually, taking
account of factors including, but not limited to, the scale of
responsibilities, the individual’s experience and performance.
There is no prescribed maximum salary or annual
increase.
Individual performance is taken into account
when salary levels are reviewed.
Benefits
To provide competitive
benefits to ensure the
wellbeing of employees.
Pension
To provide competitive
retirement benefits.
Whilst the Committee takes benchmarking information into
account, its decisions are based primarily on the performance
of the individual concerned against the above factors to
ensure that there is no unjustified upward ratchet in base
salary.
Benefits include, but are not limited to, annual medicals,
life assurance cover of up to six times base salary, allowances
in lieu of a company car or other benefits, private medical
insurance (for the individual and their dependants) and other
benefits typically provided to senior executives.
Executive Directors can participate in any all-employee share
plans operated by the Company on the same basis as all other
employees.
Executive Directors can elect to join the Company’s defined
contribution pension scheme, receive pension contributions
into their personal pension plan or receive a cash sum in lieu
of pension contributions.
In awarding any salary increases, the Committee
is guided by the general increase for the
employee population but on occasions may
need to recognise other factors including, but
not limited to, development in role, change in
responsibility and/or variance to market levels
of remuneration.
The total value of these benefits (excluding the
all-employee plans) will not normally exceed 12%
of salary.
n/a
The maximum opportunity under any all-
employee share plan is in line with all other
employees and is as determined by the prevailing
HMRC rules.
For new Executive Directors pension provisions
will be in line with those of the wider UK
workforce (currently 5% of salary).
n/a
For the Group CEO the pension is being brought
in line with the wider UK workforce over the
next two years to 5% as previously committed.
It will reduce to 10% from 1 June 2024 and to 5%
from 1 June 2025.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Annual Incentive
Plan (‘AIP’)
To drive the short-term
strategy and recognise
annual performance
against targets which
are based on business
objectives.
Awards are based on Group annual performance targets, with
performance targets normally set annually by the Board.
Incentive out-turns are normally assessed by the Committee
at the year-end, taking into account performance against the
targets and the underlying performance of the business.
The maximum opportunity in respect of a
financial year is 200% of salary for each
Executive Director.
The Committee has the ability to adjust incentive payments if
it believes that out-turns are not appropriate in the context of
overall performance.
The payout at below threshold performance is 0% of
maximum, with 25% of the maximum bonus normally payable
for threshold performance. Payouts between threshold and
maximum (100%) are determined on an annual basis. Details of
the payout schedule will be disclosed in the relevant Directors’
Remuneration report.
Normally, 50% of any incentive is paid in cash and 50%
deferred into shares which will vest after a period of three
years subject to continued employment.
Malus and clawback provisions apply.
Annual grant of conditional shares which vest after three years,
subject to Company performance and continued employment.
Up to 300% of salary in respect of any
financial year.
Awards may be made in other forms (e.g. nil-cost options) if
considered appropriate.
The shares will also normally be subject to a two-year holding
period after vesting.
Performance targets are normally set annually for each
three-year performance cycle by the Board.
Vesting is normally assessed by the Committee after the end
of the performance period, taking into account performance
against the targets and the underlying performance of the
business. The Committee has the ability to adjust incentive
payments if it believes that out-turns are not appropriate in
the context of overall performance.
Malus and clawback provisions apply.
Long Term Incentive
Plan (‘LTIP’)
To retain and reward
Executive Directors for
the delivery of long-term
performance.
To support the continuity
of the leadership of the
business.
To provide long-term
alignment of executives’
interests with shareholders
by linking rewards
to Intertek’s performance.
82
The annual incentive will be measured against
a range of key Group performance indicators,
including both financial and non-financial
measures, with a minimum weighting of 80%
of financial measures.
For 2024, the annual incentive will be based
on a 70% matrix of revenue and adjusted
operating profit growth, 15% ROIC and 15%
ESG, based on Carbon Emissions. These
measures support the Group's strategy for
growth and our purpose of bringing quality,
safety and sustainability to life. The stretch
targets, when met, reward exceptional
achievement and contribution. There is no
incentive payout if threshold targets are
not met.
LTIP awards are subject to an appropriate
balance of earnings, cash and capital efficiency
based performance measures, which align with
the Group's strategy for sustainable growth.
The Committee retains the discretion to
introduce another performance metric, with
a maximum weighting of up to one-third of
the incentive. Were the Committee to
introduce such measures, it would normally
consult with the Company’s largest
institutional shareholders.
For 2024, the LTIP award will be based on
earnings per share, return on invested capital
and adjusted free cash flow. Each measure will
have an equal weighting.
25% of an award will vest for achieving
threshold performance, increasing pro rata
to full vesting for the achievement of stretch
performance targets.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Element of pay
Purpose and link to strategy
Operation
Maximum opportunity
Performance measures
Share ownership
guidelines
To increase alignment
between executives and
shareholders.
Executive Directors are expected to retain any vested shares
(net of tax) under the Group’s share plans until the guideline
is met.
500% of salary for the CEO.
n/a
300% of salary for the CFO.
The guideline should normally be met within five years of the
guideline being set.
Further details of the share ownership guidelines and the
post-cessation shareholding guidelines are set out in the
Directors’ Remuneration report.
Holding and vesting periods for all share awards will be
adhered to post-employment.
Post-cessation of
employment
shareholding
To ensure alignment of
sustainable performance
between executives and
shareholders.
Non-Executive
Directors’ fees
To attract and retain
high-caliber Non-Executive
Directors through the
provision of market-
competitive fees.
A proportion of the fees (at least 50%) are paid in
cash, with the remainder used to purchase shares.
Fees are primarily determined based on the
responsibility and time committed to the Group’s
affairs and appropriate market comparisons.
n/a
n/a
Executive Directors are required to hold
shares equivalent to the lower of
(i) their share ownership guidelines; or
(ii) their actual shareholding, for two years
post-employment.
As for the Executive Directors, there is no
prescribed maximum annual increase. The
Committee is guided by the general increase
for the employee population but on occasions
may need to recognise other factors including,
but not limited to, change in responsibility and/
or variance to market levels of remuneration.
The Chair receives an all-inclusive fee. Non-Executive
Directors receive a base fee and further fees for
additional Board responsibilities. Additional fees may
be paid in the exceptional event that Non-Executive
Directors are required to commit substantial additional
time above that normally expected for the role.
With the exception of benefits in kind arising
from the performance of duties (and any tax due
on those benefits which is reimbursed by the
Company), no other benefits are provided.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Selection of performance metrics
The annual incentive plan is based on performance
against a mix of financial and non-financial
measures. The mix of financial measures is aligned
to the Group’s key performance indicators (‘KPIs’)
and is reviewed each year by the Remuneration
Committee to ensure that they remain appropriate
to reflect the priorities for the business in the
year ahead. The targets are set for each KPI
to encourage continuous improvement and
challenge the delivery of stretch performance.
The 2024 LTIP award is based on earnings per share
growth, return on invested capital and adjusted
free cash flow. The performance metrics align with
Intertek’s earnings model, which supports delivery
of the Company’s AAA growth strategy, which
aims to move the centre of gravity of the Company
towards high-growth, high-margin areas in our
industry. Earnings per share ensure that there is a
clear focus on margin-accretive revenue growth;
adjusted free cash flow ensures focus on strong
cash management; and return on invested capital
ensures a focus on disciplined capital management.
A sliding scale of challenging performance targets
is set for each measure. The Committee reviews
the choice of performance measures and the
appropriateness of the performance targets prior
to each LTIP grant. The Committee reserves the
discretion to set different targets for future awards,
without consulting with shareholders. When setting
the targets for the annual incentive and the LTIP, the
Committee takes into account a range of factors,
including the business plan, prior-year performance,
market conditions and consensus forecasts.
Terms of incentive awards
Deferred Share awards and LTIP awards may include
the right to receive (in cash or shares) the value of
the dividends that would have been paid on the
shares that vest up to the time of vesting (or for
LTIP awards, up to the end of the relevant holding
period). The Committee’s intention is that such
dividends would normally be settled in shares.
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The Committee will operate the annual incentive plan
and LTIP according to the respective rules of the
plans. The Committee will retain flexibility in a
number of areas regarding the operation and
administration of these plans, including (but not
limited to) the following:
• how to deal with a change of control or
restructuring of the Group, or a demerger or similar
event (including how to assess performance
conditions and whether to time pro-rate awards);
• and how and whether any award may be adjusted
in certain circumstances (including in the event of
a variation of share capital, demerger, special
dividend, or similar event).
The Committee also retains the discretion within the
Remuneration Policy to adjust targets and/or set
different measures and weightings if it considers it is
required so that the targets or conditions achieve
their original purpose. Revised targets/measures will
be, in the opinion of the Committee, no less difficult
to satisfy than the original conditions. The
Committee may accelerate the vesting and/or the
release of awards if an Executive Director moves
jurisdictions following grant and there would be
greater tax or regulatory burdens on the award in the
new jurisdiction.
Remuneration scenarios for
Executive Directors
The chart on the next page illustrates how the
Executive Directors’ remuneration packages vary at
different levels of performance under the Policy
which will apply in 2024 for both the Chief Executive
Officer (‘CEO’) and Chief Financial Officer (‘CFO’).
Approach to recruitment and promotions
The remuneration package for a new Executive
Director – base salary, benefits, pension, annual
incentive and long-term incentive awards – would be
set in accordance with the terms of the Company’s
prevailing approved Remuneration Policy at the time
of appointment. The Committee may set the base
salary at a value to reflect the calibre, experience
and earnings potential of a candidate, subject
to the Committee’s judgement that the level of
remuneration is in the Company’s best interest.
The maximum level of variable pay (annual incentive
and long-term incentive awards, or any combination
thereof) which may be awarded to a new Executive
Director at or shortly following recruitment
shall be limited to 500% of salary. These limits
exclude buy-out awards and are in line with the
Remuneration Policy for Directors set out previously.
The Committee may offer additional cash and/
or share-based elements to take account of
remuneration relinquished when leaving the
former employer when it considers these
buy-outs to be in the best interests of the
Company (and therefore shareholders).
Any such awards would reflect the nature, time
horizons and performance requirements attaching
to the remuneration it is intended to replace. Where
appropriate, the Committee retains the flexibility to
utilise Listing Rule 9.4.2 for the purpose of making
an award to buy-out remuneration relinquished
when leaving the former employer. For external
and internal appointments, the Committee
may agree that the Company will meet certain
relocation expenses and continuing allowances
as appropriate. Additionally, in the case of any
Executive Director being recruited from overseas,
or being recruited by the Company to relocate
overseas to perform their duties, the Committee
may offer expatriate benefits on an ongoing basis
subject to their aggregate value to the individual
not exceeding 50% of salary per annum.
For an internal Executive Director appointment,
any variable pay element awarded in respect of
the prior role may be allowed to pay out according
to its terms, adjusted as relevant to take into
account the appointment. In addition, any other
ongoing remuneration obligations existing prior
to appointment may continue. If a new Chair or
Non-Executive Director is appointed, remuneration
arrangements will be in line with those detailed in
the Remuneration Policy for Non-Executive Directors
set out in the Remuneration Policy for Directors.
Service contracts for Executive Directors
The service agreements of the Executive Directors
are not fixed term and are terminable by either
the Company or the Director on 12 months’ notice
and make provision, at the Board’s discretion, for
early termination by way of payment of salary
and pension contributions in lieu of 12 months’
notice. In calculating the amount payable to
a Director on termination of employment, the
Board would take into account the commercial
interests of the Company and apply usual
common law and contractual principles. Any
payments in lieu of notice may be paid in a lump
sum or may be paid in instalments and reduce if
the Director finds alternative employment. The
service contracts are available for inspection at
the Company’s registered office. The Committee
reviews the contractual terms for new Executive
Directors to ensure these reflect best practice.
In summary, the contractual provisions are:
Provision
Detailed terms
Notice period 12 months
Common
law and
contractual
principles
Remuneration
entitlements
Change of
control
Common law and contractual
principles apply
An incentive may be payable
(pro rata where relevant) and
outstanding Share Awards may
vest (see page 85)
No Executive Director’s contract
contains provisions or additional
payments in respect of change of
control. The treatment of annual
incentive awards and outstanding
Share Awards will be treated in line
with the relevant plan rules
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
In determining whether an Executive Director should
be treated as a good leaver or not, the Committee
will take into account the reasons for their departure.
The Committee reserves the right to make any
other payments (including appropriate legal fees) in
connection with an Executive Director’s cessation
of office or employment where the payments are
made in good faith on discharge of an existing
legal obligation (or by way of damages for breach
of their obligation) or by way of settlement of any
claim arising in contravention with the cessation
of an Executive Director’s office or employment.
Value of remuneration packages at different levels of performance
£’000
8,500
8,000
7,500
7,000
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
£8,185
58%
£6,597
48%
32%
26%
£3,950
40%
27 %
£1,302
100%
33%
20%
16%
LTIP award
Annual incentive
Basic salary, benefits and pension
£2,524
40%
40%
20%
£3,024
50%
33%
17%
£1,524
33%
33%
34%
£524
100%
Minimum
On-target
Maximum
Maximum 2
Minimum
On-target
Maximum
Maximum 2
A Lacroix, Chief Executive Officer
C Deasy, Chief Financial Officer
Points relating to the above table:
1. Salary levels are based on those applying on 1 April 2024.
2. The value of taxable benefits is based on the cost of supplying those benefits (as disclosed) for the year ended 31 December 2023.
3. The value of pension receivable in 2024 by the CEO is taken to be 15% of salary until 1 June 2024 and 10% thereafter, and for the CFO taken to be 5% of salary.
4. The on-target level of annual incentive is taken to be 50% of the maximum opportunity.
5. The on-target level of the LTIP is taken to be 50% of the face value of the award at grant.
6. Share price movement and dividend accrual have not been incorporated into the first three scenarios. Share price growth of 50% has been assumed on the LTIP in the Maximum 2 scenario.
There is no automatic entitlement to an annual
incentive award in the year of cessation of
employment. The Committee may determine
however, that for certain leavers an annual
incentive award may be payable with respect
to the period of the financial year served.
Any share-based entitlements granted to an
Executive Director under the Company’s share plans
will be determined based on the relevant plan rules.
The default treatment under the 2021 LTIP,
and previously under the 2011 LTIP, is that
any outstanding awards lapse on cessation of
employment. However, in certain prescribed
circumstances, such as death, ill-health, injury,
disability or other circumstances at the discretion of
the Committee, ‘good leaver’ status may be applied.
For good leavers, Deferred Share awards will vest
in full on the original vesting date (as permitted
under the plan rules), unless the Remuneration
Committee determines that awards should vest
at an earlier date. LTIP awards will normally vest
on the original vesting date (they will normally,
where appropriate, be subject to any holding
period), and subject to the satisfaction of the
relevant performance conditions at that time and
reduced pro rata to reflect the proportion of the
performance period actually served. However,
the Committee has discretion to determine that
awards vest at an earlier date and/or to disapply
time pro-rating, although it is envisaged that this
would only be applied in exceptional circumstances
(for example, death). Any such incidents, where
discretion is applied by the Committee in relation
to Executive Directors, will be disclosed in the
following Annual Report on Remuneration.
85
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
The remuneration strategy set out at the beginning
of the Directors’ Remuneration Policy report
reflects the strategy in place across the Group
for all employees. Although this remuneration
strategy applies across the Group, given the size
of the Group and the geographical spread of its
operations, the way in which the Remuneration
Policy is implemented varies across the Group.
For example, annual incentive deferral applies
at the more senior levels within the Group and
participation in the LTIP is at the Remuneration
Committee’s discretion and is typically limited to
senior executives employed within the Group.
Given the geographical spread of the Group’s
operations, the Remuneration Committee
does not consider it appropriate to consult
employees on the Remuneration Policy
in operation for Executive Directors.
Consideration of shareholder views
The Committee values the opportunity to engage in
meaningful dialogue with its investors. Over the last
few years the Committee has consulted extensively
with all major shareholders on points relating to the
Remuneration Policy.
Legacy arrangements
The approved Directors’ Remuneration Policy
and that which is to be presented to the 2024
AGM provide authority to the Company to honour
any commitments entered into with current
or former Directors such as the vesting of
outstanding share awards (including exercising
any discretions available to it in connection
with such commitments) that were agreed:
(i) before the policy set out above, or any previous
policy, came into effect;
(ii) at a time when a previous policy approved by
shareholders was in place provided that the
payment is in line with the terms of that policy;
and
(iii) at a time when the relevant individual was not a
Director of the Company and the payment was
not in consideration for the individual becoming a
Director of the Company.
Letters of appointment for
Non-Executive Directors
The letter of appointment for each Non-Executive
Director states that they are appointed for an
initial period of three years and all appointments
are terminable by one month’s notice on either
side. At the end of the initial period and after
rigorous review, the appointment may be renewed
for a further period, usually three years, if the
Company and the Director agree and subject to
annual re-election at the AGM. Each letter of
appointment states that if the Company were to
terminate the appointment, the Director would not
be entitled to any compensation for loss of office.
The table below sets out the terms for all the
current Non-Executive Directors of the Board.
Consideration of employment conditions
elsewhere within the Group
When setting the Remuneration Policy for Executive
Directors, the Remuneration Committee takes
into account the pay and employment conditions
elsewhere within the Group. When considering
the remuneration arrangements for the Executive
Directors for the year ahead, the Committee is
informed of salary increases across the wider
Group. The Committee also approves the overall
reward strategy in operation across the Group.
Andrew Martin
Graham Allan
Gurnek Bains
Date of appointment
26 May 2016 becoming Chair on 1 January 2021
Reappointed: 26 May 2022
1 October 2017
Reappointed: 1 October 2023
1 July 2017
Reappointed: 1 July 2023
Lynda Clarizio
1 March 2021
Tamara Ingram
Jez Maiden
Kawal Preet
Gill Rider
18 December 2020
Reappointed: 18 December 2023
26 May 2022
31 December 2022
1 July 2015
Reappointed: 1 July 2021
Apurvi Sheth
1 September 2023
Jean-Michel Valette
1 July 2017
Reappointed: 1 July 2023
Notice period/Unexpired term
as at 31 December 2023
One month/17 months
One month/33 months
One month/30 months
One month/2 months
One month/35 months
One month/17 months
One month/24 months
One month/6 months
One month/32 months
One month/30 months
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Annual Report on Remuneration
Committee membership and meeting
attendance
Committee responsibilities and how we met them in the year
We have specific responsibilities reserved to us by the Board and the full Terms of Reference of the Committee,
which are reviewed annually, can be found on our website at intertek.com.
Matters delegated to the Committee
Meetings
attended
Determines the Company’s policy on remuneration for the Executive Directors and
senior executive management.
Code provision
33, 36–40
Committee members
Gill Rider (Chair)
Graham Allan
Gurnek Bains
Tamara Ingram
Scheduled
meetings
eligible to
attend
4
4
4
4
4
4
4
31
1. Tamara Ingram gave apologies for one meeting to attend a funeral.
Throughout 2023 and at all times the composition
of the Committee was compliant with the Code. All
members are independent Non-Executive Directors.
Prior to joining Intertek in July 2015, Gill had been
Chair of the Remuneration Committee at Charles
Taylor plc. This enabled the Nomination Committee
to recommend her appointment as Chair of the
Committee which was then approved by the Board.
On appointment, new Committee members
receive an appropriate induction consisting of
meetings with senior personnel, advisers and
as appropriate, meetings with shareholders
and other relevant stakeholders. They also
review the Terms of Reference, previous
Committee meeting papers and minutes.
The Committee invites the Chair, CEO and the EVP,
Human Resources to attend meetings when it deems
appropriate, except when their own remuneration
is discussed. No Director is involved in determining
his or her own remuneration. None of the
Committee members has had any personal financial
interest, except as shareholders, in the decisions
made by the Committee. The Group Company
Secretary acts as Secretary to the Committee.
87
Determines the remuneration for the above and the Chair, including any compensation
on termination of office.
Reviews the remuneration arrangements for the wider employee population and
considers issues relating to remuneration that may have a significant impact on the
Group.
Provides advice to, and consults with, the CEO on major policy issues affecting the
remuneration of other executives.
Responsible for establishing the selection criteria, selecting, appointing and setting
the terms of reference for any remuneration consultants who advise the Committee.
33
33
33
35
Keeps the Remuneration Policy under review in light of regulatory and best practice
developments and shareholder expectations and ensures that the Remuneration Policy
is voted on at least every third year. Due regard is given to the interests of shareholders
and the requirements of the Listing Rules and associated guidance.
36–40
Ensures each year that the Annual Directors' Report on Remuneration is put to
shareholders for approval at the AGM and includes a description of the work of the
Committee.
41
Executive Director remuneration
We are responsible for determining the
Company’s policy on the remuneration of
the Chair, the Executive Directors and senior
executive management. We also determine
their remuneration packages, including any
compensation on termination of office and
review to ensure their alignment with our culture
and with those of the workforce as a whole.
In the year, we addressed this by reviewing and
agreeing the remuneration of the Executive
Directors as well as the Group Executive
Committee. We received advice from Deloitte
LLP (‘Deloitte’) to inform our discussions.
Wider workforce remuneration
and engagement
We also review the remuneration and related
policies of the wider workforce to ensure that
incentives and rewards align to our Purpose, Values
and culture. As part of this we receive information
on salary increases, the design of the bonus and
targets and on the 2021 Long Term Incentive Plan
and performance criteria. This is used to inform
decisions when setting the policy for Executive
Director remuneration and for when we consult with,
or provide advice to, the CEO on major policy issues
affecting the remuneration of other executives.
The remuneration framework and the incentive
structure that we have in place cascades right down
through the wider workforce and ensures alignment
with executive remuneration and the Intertek AAA
growth strategy. We also took into account the UK
wider workforce salary increase when determining
the 2024 salary increase for the Executive Directors.
We ensure that we have effective engagement with
the wider workforce on the Group’s remuneration
and related policies through various escalation
processes and communication forums including
Town Halls, WhatsIn, emails and leadership briefings.
The regular Town Halls that take place across
the Group provide an opportunity for our people
to raise questions on remuneration which are
addressed at the meetings, with feedback directly
fed to senior management and then upwards.
During the year, we reviewed the salary levels for
senior management and the determination of the
annual incentive payments and long-term incentive
outcome for 2023. We considered a report on the
general market trends that could impact the Group.
Further information is provided in the letter from
the Chair of the Committee on pages 78-80.
Remuneration Policy and report
It is important that we keep the Remuneration Policy
under review in light of regulatory and best practice
developments, Listing Rules and Governance Code
changes as well as shareholder expectations.
We annually undertake a review of the Directors’
Remuneration report to ensure compliance
with Remuneration Reporting Regulations.
We also discussed the 2023 proxy voting
agencies' reports and their recommendations
issued prior to the 2023 AGM.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Incentives
A key task for us each year is to review the outcomes
for the incentive schemes and agree on payment
levels taking into account actual performance
and any extraordinary events which may have
impacted on performance. We will consider if
there is a need to apply malus or clawback and,
should there be, we would agree the quantum.
We undertook, with external advice, a thorough
review of the 2023 annual incentive targets,
performance measures and the EPS, adjusted
free cash flow and ROIC results to determine
the percentage of incentive awards that
would vest in 2023 which was 66.67%.
We also agreed the performance conditions that
should apply to the LTIP awards granted in the
year to vest based on the performance to the end
of 2026. We reviewed the quantum of awards
given and were satisfied that they reflected the
Remuneration Policy and were appropriate.
Committee review
We undertake an annual review of how effectively
we are working as a committee and take steps to
develop any areas identified for improvement.
We also reviewed how we work as a committee,
members’ individual strengths and also any
additional training that may be beneficial.
We received updates on market trends in
remuneration from Deloitte and regular updates
on corporate governance and policy changes.
Advisers
To ensure that the Group’s remuneration practices
drive and support achievement of strategies and
are market competitive, the Committee obtains
advice from various independent sources.
We review the appointment of the remuneration
consultant and consider if they remain independent
and applicable for the needs of the Committee.
In the event that we decide that they are
no longer appropriate, we would arrange a
review and any subsequent appointment.
In 2023, the Committee received advice from
Deloitte, who they appointed in 2015 for their
particular expertise both at a local and global
level, due to the worldwide operations of the
Group and, following review, the Committee
remains satisfied that their advice is objective
and independent and has sufficient breadth of
knowledge to support our deliberations across
the Group as a whole. Deloitte are members of
the Remuneration Consultants Group and adhere
to the voluntary Code of Conduct in relation to
executive remuneration consulting in the UK.
The fees paid to Deloitte in the year were
£74,458 exclusive of VAT. The charges for
services are calculated on the basis of time
spent and the seniority of the personnel
performing the work at their respective rates.
In addition to the services provided to the
Committee, Deloitte provided unrelated tax services
to the Group during the year. Deloitte do not have
any connection with any Directors of the Company.
External appointments
The Company recognises that, during their
employment with the Company, Executive Directors
may be invited to become Non-Executive Directors
of other companies and that such duties can
broaden their experience and knowledge. Executive
Directors may, with the written consent of the
Company, accept such appointments outside
the Company, and the policy is that any fees
may be retained by the Director. No Executive
Director currently has an external appointment.
Statement of shareholder voting
At the AGM held on 26 May 2021, a resolution
was proposed to shareholders to approve the
Remuneration Policy. This resolution received
the following votes from shareholders:
In favour
Against
Total
Withheld
Votes
%
91,627,222
41,668,760
133,295,982
2,431,490
68.74
31.26
82.591
1. Percentage of total issued share capital voted.
At the 2023 AGM, a resolution was proposed
to shareholders to approve the Directors’
Remuneration report for the year ended
31 December 2022. This resolution received
the following votes from shareholders:
In favour
Against
Total
Withheld
Votes
122,439,715
11,482,090
%
91.43
8.57
133,921,805
82.981
2,065,063
1. Percentage of total issued share capital voted.
88
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Directors’ Remuneration Policy – implementation in 2024
Elements
Base salary
Implementation in 2024
Base salary for 2024:
André Lacroix: £1,058,916.
Colm Deasy: £500,000.
The Committee has awarded the CEO a 3.0% salary increase, which is below the wider UK workforce yearly increase of 3.4%. Further context on the increase in the CFO's salary are set out in
the Chair's cover statement.
Benefits
Includes, for example, annual medicals, life assurance cover of up to six times base salary, allowances in lieu of a company car or other benefits, private medical insurance and other benefits
typically provided to senior executives. Executive Directors can participate in any all-employee share plans operated by the Company on the same basis as all other employees.
Pension
From 1 June 2024, 10% reducing by 5% each year until it is in line with the wider UK workforce (currently 5% of salary) for the CEO. 5% of base salary for the CFO.
Total value of benefits (excluding all-employee plans) will not exceed 12% of salary.
Annual Incentive Plan (‘AIP’)
• Maximum opportunity for the CEO and CFO: 200% of base salary.
• 50% of any incentive is paid in cash and 50% is deferred into shares vesting after three years.
• Malus and clawback provisions apply.
• Performance metrics – based on a 70% matrix of revenue and adjusted operating profit growth, 15% ROIC and 15% ESG, based on Carbon Emissions. Targets are not disclosed prospectively
due to commercial sensitivity, however, detailed disclosure of the performance targets and actual out-turns will be provided in the following year.
• Annual incentive will continue to be subject to a quality of earnings review at the end of the year to ensure that payouts are appropriate based on the underlying performance of the Group
and to ensure that any awards are commensurate with the Group’s culture and Values.
Long Term Incentive Plan
(‘LTIP’)
As set out in the table below, the ROIC targets are set taking into account the stretch within the business plan and current ROIC performance. The change in the target range relative to prior
years reflects the level of invested capital at work within the business, which has increased in recent years through the Group’s strategy of making bolt-on acquisitions which complement
the Group’s business (including the 2023 acquisition of Controle Analytico and PlayerLync). The Committee believes that the proposed target range for ROIC (and the wider financial metrics
in the LTIP) are appropriately stretching relative to the business plan and external forecasts of performance.
• Maximum opportunity for the CEO and CFO: 300% and 200% of base salary, respectively.
• Two-year holding period after vesting.
• Malus and clawback provisions apply.
• Performance metrics for awards being granted in 2024:
Measures
Definition
Threshold
(25%)
Maximum
(100%)
Commentary
Earnings Per
Share (‘EPS’)
(1/3)
Annualised fully diluted, adjusted EPS growth.
4.0% p.a.
10% p.a.
Compound annual growth rate targets.
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs in Book
one, page 26.
89
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Elements
Implementation in 2024
Measures
Definition
Adjusted Free
Cash Flow (1/3)
Return on
Invested Capital
(‘ROIC’) (1/3)
Free cash flow generated from operations less net
capital expenditure, net interest paid and income
tax paid. Adjusted for separately disclosed items.
Measured on a constant currency basis.
Per the definition used in Book one, page 26.
Adjusted operating profits less adjusted tax divided
by invested capital (net assets excluding tax
balances, net financial debt and net pension
liabilities).
Measured on a constant currency basis.
Per the definition used for the Group’s KPIs in
Book one, page 26.
Threshold
(25%)
Maximum
(100%)
Commentary
£1,210m
£1,290m
Cumulative targets measured over three years.
Targets set taking into account stretch within business plan and expected capital
expenditure over the coming three years.
18.6%
22.6%
Cumulative adjusted operating profits divided by cumulative invested capital in each of
the three performance years.
Target set taking into account stretch within business plan, current ROIC performance,
and reflective of the Group’s strategy of making small bolt-on acquisitions which
complement the Group’s business.
The treatment of significant acquisitions would be determined at the time of the
transaction.
Share ownership guidelines
Shareholding guidelines are 500% of salary for the CEO and 300% of salary for the CFO. A post-cessation holding equivalent to the lower of the guideline target or the number of shares
held at the date of departure will be required to be held for a period of two years from the Executive's departure date.
Non-Executive Directors’ fees
Fees for the Non-Executive Directors are determined by the Board, based on the responsibility and time committed to the Group’s affairs and appropriate market comparisons. Individual Non-Executive Directors do not take part
in discussions regarding their own fees.
Board membership
Chair
Non-Executive Director
Senior Independent Non-Executive Director
Committee membership
Chair Audit Committee
Chair Remuneration Committee
Chair Nomination Committee
Member Audit Committee
Member Remuneration Committee
Member Nomination Committee
From
1 January
2024
£’000
From
1 January
2023
£’000
350
62
12
20
15
–
10
10
5
350
62
12
20
15
–
10
10
5
Included in the fees shown in the table above, and pursuant to the policy of aligning Directors’ interests with those of shareholders, £10,000 of the fees paid to the Non-Executive Directors and £35,000 of the fees paid to the
Chair are used each year to purchase shares in the Company.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Remuneration in context
The following section sets out how the Remuneration Committee has addressed the factors in Provision 40, when determining Executive remuneration as set out in the 2018 UK Corporate Governance Code.
Code requirement
Intertek approach
Clarity
Remuneration arrangements should be transparent
and promote effective engagement with
shareholders and the workforce
Simplicity
Remuneration structures should avoid complexity
and their rationale and operation should be easy to
understand
Risk
Remuneration structures should ensure
reputational and other risks from excessive
rewards, and behavioural risks that can arise from
target-based incentive plans, are identified and
mitigated
Predictability
The range of possible values of rewards to
individual Directors and any other limits or
discretions should be identified and explained
at the time of approving the Policy
Proportionality
The link between individual awards, the delivery
of strategy and the long-term performance of the
Company should be clear and outcomes should not
reward poor performance
Alignment with culture
Incentive schemes should drive behaviours
consistent with the Company’s Purpose, Values
and strategy
91
Variable remuneration arrangements, which are cascaded throughout the workforce, are based on clearly defined performance metrics which are aligned with the
Group’s AAA differentiated growth strategy for sustainable long-term growth.
Remuneration arrangements are simple, comprising the following key elements, which are consistent from Executive Directors to front line workforce where
appropriate:
• Fixed element: comprises base salary, benefits and pension, which are aligned to that offered to the majority of the workforce.
• Short-term incentive: annual bonus which incentivises the delivery of financial and non-financial performance metrics linked to ESG. Half of the bonus is paid in cash
with the balance deferred into shares vesting after a period of three years.
• Long-term incentive: LTIP which incentivises financial performance over a three-year period, promoting long-term sustainable value creation for shareholders. Awards
are subject to a two-year holding period post-vesting.
Performance targets are calibrated to be aligned with the Group’s business plan which is set in line with the Group’s risk framework.
The Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of overall performance of the
Group, including risk.
The remuneration scenario charts, set out on page 85, provide estimates on the potential future reward opportunity in a range of scenarios, including below
threshold, target and maximum performance (including share price appreciation).
Variable remuneration is directly aligned to the Group’s strategic priorities (through the selection of key financial performance metrics), with payments calibrated to
ensure that payments are only made where strong performance is delivered.
As noted above, the Remuneration Committee retains the flexibility to review formulaic outcomes to ensure that they are appropriate in the context of the overall
performance of the Group.
As set out on page 80, the Remuneration Policy at Intertek has been set to be appropriate for the nature, size and complexity of the Group, encourages our employees
in the development of their careers, is aligned with the Company’s strategy and is in the best interests of the Company and its stakeholders.
It is directed to deliver continued sustainable profitable growth.
Our remuneration strategy is to: align and recognise the individual’s contribution to help us succeed in achieving our AAA differentiated growth strategy; attract,
engage, motivate and retain the best available people by positioning total pay and benefits to be competitive in the relevant market and in line with the ability of the
business to pay; reward people equitably for the size of their responsibilities and performance; and motivate high performers to increase shareholder value and share
in the Group’s success through well designed and appropriately calibrated incentive schemes.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
The sections that have been audited are indicated as such on pages 92-101. The independent auditors’ report can be found in Book three, pages 57-63.
Directors’ remuneration earned in 2023 (audited)
The table below and on the following page summarise Directors’ remuneration received for 2023 and the prior year for comparison. Taken in the context of internal and external comparators, the Committee considered the
Executive Directors' remuneration to be appropriate.
Executive Directors
André Lacroix
Colm Deasy
Jonathan Timmis
Base salary or fees
£’000
Benefits1
£’000
Annual incentive2
£’000
1,023
1,003
338
110
533
120
121
16
10
32
1,417
415
466
154
220
Long–term
incentives
£’000
2,353³
1,3204
–
513³
n/a4
Pension5
£’000
175
221
15
6
27
Total
£’000
5,088
3,080
835
793
812
Total fixed
£’000
Total variable
£’000
1,318
1,345
369
126
592
3,770
1,735
466
667
220
2023
2022
20236
20237,8
2022
1. Benefits include allowances in lieu of company car, annual medicals, life assurance, private medical insurance, BIK arising from the performance of duties, and the use of a car and driver for the CEO (gross £27,892, net £15,341).
2. This relates to the payment of the annual incentive and Deferred Share Award for the financial year-end. Further details of this payment are set out on the following pages.
3. This relates to the 2021 LTIP award due to vest in March 2024. The value shown is based on the share price of £40.11 which was the average mid-market share price in the fourth quarter of 2023. Further details on performance are set out on page 95. There was no discretion exercised in respect of the awards.
4. This relates to the 2020 LTIP award which vested in March 2023 where the performance outcome gave rise to 66.67% vesting. This figure has been updated to show the actual value of the vested LTIP award based on the share price of £41.95, whilst the 2022 Annual Report included figures based on the share price for
the final quarter of 2022 (£38.94). There was no discretion exercised in respect of the awards.
5. None of the Executive Directors had a prospective entitlement to a defined benefit pension.
6. This relates to the period from 17 March 2023 when Colm Deasy was appointed as a director.
7. This relates to the period to 17 March 2023 when Jonathan Timmis ceased to be a director.
Information in respect of Jonathan Timmis' Buyout Awards can be found on page 99.
8.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Non-Executive Directors
Andrew Martin
Graham Allan
Gurnek Bains
Lynda Clarizio
Tamara Ingram
Jez Maiden
Kawal Preet
Gill Rider
Apurvi Sheth
Jean-Michel Valette
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
20223
2023
20224
2023
2022
20235
2023
2022
Base salary or fees1
£’000
Benefits2
£’000
350
350
89
89
77
77
72
72
77
75
72
37
62
–
87
87
17
82
82
9
10
–
–
–
–
5
5
–
–
2
3
5
–
1
1
1
4
4
Total
£’000
359
360
89
89
77
77
77
77
77
75
74
40
67
–
88
88
18
86
86
1. Pursuant to the policy of aligning Directors’ interests with those of shareholders, the fees shown as being paid to the Non-Executive Directors include £10,000 used to purchase shares and the fee paid to the Chair includes £35,000 used to purchase shares.
2. Certain expenses relating to ensuring that the Directors were in a position to undertake the performance of their duties such as travel to and from Company meetings, related accommodation and completion of UK tax returns for overseas Directors have been classified as taxable. In such cases, the Company will ensure
that the Director is not out of pocket by settling the related tax via the PSA. In line with current regulations, these taxable benefits have been disclosed and are shown in the Benefits column and the figures shown are the cost of the taxable benefit. With respect to the Non-Executive Directors no other benefits are
provided.
3. The fees shown for Jez Maiden relate to the period from 26 May 2022, the date he was appointed to the Board.
4. The fees shown for Kawal Preet relate to the period from 31 December 2022, the date she was appointed to the Board.
5. The fees shown for Apurvi Sheth relate to the period from 01 September 2023, the date she was appointed to the Board.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Annual incentive (audited)
The annual incentive for 2023 was:
• 70% based on a matrix of revenue and adjusted operating profit growth;
• 15% based on return on invested capital (‘ROIC’); and
• 15% based on a Carbon Emissions target.
Overview of the matrix (70% of the award)
Revenue performance (£m)
Maximum
Target
Threshold
Below threshold
Adjusted operating profit performance (£m)
Below threshold
Threshold
Target
Maximum
0%
0%
0%
0%
40%
30%
25%
0%
65%
50%
35%
0%
100%
75%
60%
0%
Straight-line payouts occur between each of the points above threshold noted above.
The Company’s performance resulted in a Group annual incentive payout of 68.94% of maximum opportunity. Performance of individual components is shown below.
2023 Company performance against annual incentive targets (at 2022 constant currency)
Financial measures
Total external revenue1
Adjusted operating profit1
Revenue/profit matrix
Return on Invested Capital4,6
Carbon Emissions5,6,7
Total
%
Weighting
2023
Threshold
2023
Target2
2023
Maximum
2023
Actual
Achieved3
Weighted
achievement
£3,245.6m
£3,352.5m
£3,459.4m
£3,434.8m
£533.2m
£559.9m
£586.6m
£563.7m
18.0%
18.2%
18.4%
20.6%
100.00%
202,743
198,768
194,792
184,612
50.00%8
66.34%
70.0%
15.0%
15.0%
100.0%
46.44%
15.00%
7.50%
68.94%
1. Calculated on constant 2022 exchange rates and Adjusted operating profit excludes certain non-budgeted non-recurring items and Separately Disclosed Items.
2. Target is equivalent to 50% payout.
3. Percentage achieved against maximum targets.
4. Return on Invested Capital as per definition used for the Group's KPIs in Book one, page 26.
5. Operational market-based emissions in tonnes of carbon dioxide equivalent (tCO2e) as defined in Book one, page 29.
6. Performance at threshold levels generates 25% outcome for both ROIC and Carbon Emissions.
7.
8. As set out in the cover statement from the Committee Chair, the Group exceeded the targets set on carbon emissions. Taking into account that a proportion of over-performance on carbon emissions metric was driven through accelerated capex investments, the Committee, on recommendation from the Management,
EY have issued an assurance statement in respect of Carbon Emissions disclosure that can be found on page 30.
scored the metric at target.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
For 2023, the annual incentive outturn in cash and shares is as follows:
André Lacroix
Colm Deasy
Jonathan Timmis
1. These awards vest three years after the date of grant, subject to continued employment or good leaver status. The deferred award is based on 50% of the annual incentive outturn.
Vesting of LTIP Share Awards (audited)
The LTIP Share Awards granted in 2021 are subject to performance for the three-year period ended 31 December 2023.
The performance conditions attached to this award and actual performance against these conditions are as follows:
Payable in
cash
£’000
Deferred
Share Award1
£’000
Percentage
of maximum
%
708.5
233.0
77.0
708.5
233.0
77.0
68.9
68.9
68.9
Metric
Earnings Per Share (1/3)
Adjusted Free Cash Flow (1/3)
Return on Invested Capital (1/3)
Total vesting
1. 25% of the LTIP share awards will vest at the threshold target and 100% will pay out at the stretch target.
Performance condition
Annualised fully diluted, adjusted EPS growth. Measured on a constant currency
basis.
Free cash flow generated from operations less net capital expenditure, net interest
paid and income tax paid. Adjusted for separately disclosed items. Measured on a
constant currency basis.
Adjusted operating profits less adjusted tax, divided by invested capital (net assets
excluding tax balances, net financial debt and net pension liabilities). Measured on a
constant currency basis.
Threshold
target1
Stretch
target1
Actual
performance
Vesting level
4.0%
10.0%
12.5%
100%
£977m
£1,057m
£1,231m
100%
20.0%
24.0%
26.7%
100%
100%
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
The LTIP Share Awards granted in 2021 to the Executive Directors were as follows:
Executive Director
André Lacroix
Colm Deasy2
Jonathan Timmis3
Total
1. The value of shares vested is calculated using the average mid-market share price in the fourth quarter of 2023 which was £40.11.
2. Appointed as a Director on 17 March 2023.
3. Appointed as a Director on 1 April 2021, ceased to be a Director on 17 March 2023.
4. Vesting number reduced by 7,066 shares which lapsed under pro-ration rules on leaving.
Number of shares
at grant
Number of shares
based on accrued
dividends
Total number of
shares
Number of shares
to lapse
Number of shares
to vest
54,767
3,886
58,653
–
18,713
73,480
–
1,155
5,041
–
12,8024
71,455
–
–
–
–
58,653
–
12,802
71,455
Value of vested
shares
£’0001
2,353
–
513
2,866
The Committee considered the LTIP out-turns in the context of the underlying financial performance of the Group and determined it was appropriate not to exercise its discretion. There was no share appreciation on the shares
which vested below their award price.
LTIP Share Awards granted during the year (audited)
The following LTIP Share Awards were granted to the Executive Directors during 2023:
Executive Director
André Lacroix
Colm Deasy1
Jonathan Timmis2
1. Appointed as a Director on 17 March 2023.
2
Jonathan Timmis was granted a LTIP Share Award on 13 March 2023. This award lapsed in full.
Type of award
Date of award
Basis of award
granted
Award price
£
Number of shares
over which award
was granted
Face value
of award
£’000
% of face value
that would vest at
threshold
performance
Vesting
determined by
performance over
LTIP Share Award 13 March 2023 300% of salary
LTIP Share Award 13 March 2023 200% of salary
6 June 2023 200% of salary
LTIP Share Award
LTIP Share Award 13 March 2023 200% of salary
41.922
41.922
42.234
41.922
72,127
4,651
15,508
25,547
3,024
195
655
1,071
25%
25%
25%
25%
Three years to
31 December
2025
The LTIP Share Awards granted in 2023 are conditional share awards subject to performance for the three-year period ending 31 December 2025. Shares are granted at the average of the mid-market quotation price for the
five days up to and including the day immediately before grant.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report
Remuneration Committee report Continued
The performance conditions attached to this award and the targets are as follows:
Metric
Earnings Per Share (1/3)
Return on Invested Capital (1/3)
Adjusted Free Cash Flow (1/3)
Performance condition
Annualised fully diluted, adjusted EPS growth over a three year performance period, calculated on a constant currency basis
and per the EPS definition used for the Group’s KPIs in the 2023 Annual Report and Accounts.
Adjusted operating profits less adjusted tax over the three-year period. Invested capital will be the total of the year end
invested capital base in each of the three years of the LTIP calculation period (2023 to 2026).
Free cash flow is the cash generated from operations less net capital expenditure, net interest paid and income tax paid.
Adjusted free cash flow adds back the cash outflow associated with SDI’s. This approach is consistent with the definition in
the 2023 Annual Report and Accounts.
Threshold target
Maximum target
4%
10%
15.3%
19.3%
£1,109m
£1,189m
Deferred Share Awards granted during the year (audited)
Executive Director
André Lacroix
Colm Deasy
Jonathan Timmis
1. Vesting date subject to continued employment or good leaver status.
Type of award
Date of award
Deferred Share
Award 13 March 2023
Deferred Share
Award 13 March 2023
Deferred Share
Award 13 March 2023
Basis of award
granted
Deferral of
2022 bonus
Deferral of
2022 bonus
Deferral of
2022 bonus
Award price
£
Number of shares
over which award
was granted
Face value
of award
£’000
Vesting date1
41.922
4,947
207 13 March 2026
41.922
1,581
66 13 March 2026
41.922
2,628
110 13 March 2026
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Share Plan Awards (audited)
The table below shows the Directors’ interests in the Intertek Share Plans, all of which are restricted stock units (‘RSUs’):
Type of Award
31 December 2022
Number of shares
Granted in 2023
Number of shares
Award price1
£
Dividend accrued
in 2023
Vested in 2023
Number of shares
Lapsed in 2023
Number of shares
31 December 2023
Number of shares
Date of vesting
LTIP Share3,4
Dividend
Deferred Share5
Dividend
LTIP Share6,7
Dividend
LTIP Share6,8
Dividend
LTIP Share6,9
Dividend
Deferred Share9
Dividend
LTIP Share6,10
Dividend
Deferred Share10
Dividend
44,900
2,301
10,532
679
46,296
2,113
8,471
386
60,794
1,567
17, 225
443
–
–
–
–
195,707
–
–
–
–
–
–
–
–
–
–
–
–
72,127
–
4,947
–
77,074
53.94
–
48.126
–
53.36
–
58.324
–
48.762
–
48.762
–
41.922
–
41.922
–
–
–
–
–
–
1,173
–
214
–
1,540
–
435
–
1,827
–
124
5,313
(29,934)
(1,534)
(10,532)
(679)
–
–
–
–
–
–
–
–
–
–
–
–
(42,679)
(14,966)
(767)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(15,733)
–
–
–
–
46,296
3,286
8,471
600
60,794
3,107
17, 225
878
72,127
1,827
4,947
124
219,682
May 2023
Mar 2023
Mar 2024
May 2024
Mar 2025
Mar 2025
Mar 2026
Mar 2026
Type of Award
31 December 2022
Number of shares
Granted in 2023
Number of shares
Award price1
£
Dividend accrued
in 2023
Vested in 2023
Number of shares
Lapsed in 2023
Number of shares
31 December 2023
Number of shares
Date of vesting
LTIP Share6,10
Dividend
Deferred Share10
Dividend
LTIP Share6,11
Dividend
–
–
–
–
–
–
–
4,651
–
1,581
–
15,508
–
21,740
41.922
–
41.922
–
42.234
–
–
117
39
392
548
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,651
117
1,581
39
15,508
392
22,288
Mar 2026
Mar 2026
Jun 2026
André Lacroix
2020
2021
2022
2023
Total
Colm Deasy16
2023
Total
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Jonathan Timmis17
2021
2022
2023
Total
Type of Award
31 December 2022
Number of shares
Granted in 2023
Number of shares
Award price1
£
Dividend accrued
in 2023
Vested in 2023
Number of shares
Lapsed in 2023
Number of shares
31 December 2023
Number of shares
Date of vesting
Buyout award12
Dividend
Buyout award13
Dividend
LTIP Share6,14
Dividend
LTIP Share6,15
Dividend
Deferred Share9
Dividend
Deferred Share10
Dividend
LTIP Share6
13,000
593
13,000
593
18,713
853
21,533
555
6,930
178
–
–
–
75,948
–
–
–
–
–
–
–
–
–
–
2,628
–
25,547
28,175
56.108
–
56.108
–
56.108
–
48.762
–
48.762
–
41.922
–
41.922
–
–
–
210
–
302
–
180
–
174
–
65
–
931
(12,458)
(568)
–
–
–
–
–
–
–
–
–
–
–
(13,026)
(542)
(25)
(4,694)
(215)
(6,757)
(309)
(14,355)
(371)
–
–
–
–
(25,547)
(52,815)
–
–
8,306
588
11,956
846
7, 178
364
6,930
352
2,628
65
–
39,213
Apr 2023
Apr 2024
Apr 2024
Mar 2025
Mar 2025
Mar 2026
Mar 2026
1. Awards made are based on a share price obtained by averaging the closing share prices for the five dealing days before the date of grant.
2. The dividend shares are accrued on the date the dividend is paid and determined using the closing market price of the shares on that date. The dividend
accruals relate to Share Awards made in lieu of not receiving cash dividends during the vesting period.
3. Awards vested on 30 May 2023, on which date the closing market price of shares was £41.95 having been granted on 29 May 2020, on which date the
closing market price was £55.06. Awards were made at a share price of £53.94 being the share price obtained by averaging the closing share prices for the
five dealing days before the date of grant.
10. Awards will vest on 13 March 2026, subject to continued employment or good leaver status, having been granted on 13 March 2023 on which date the
closing market price was £40.26. Awards were made at a share price of £41.922 being the share price obtained by averaging the closing share prices for
the five dealing days before the date of grant.
11. Awards will vest on 6 June 2026, subject to continued employment or good leaver status, having been granted on 6 June 2023 on which date the closing
market price was £43.69. Awards were made at a share price of £42.234 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
4. One-third of the LTIP Share Awards are subject to EPS, one-third on Return on Invested Capital and one-third on Adjusted Free Cash Flow. In 2023, 66.67%
12. Awards vested on 3 April 2023 on which date the closing market price of shares was £40.35 having been granted on 1 April 2021 on which date the
LTIP shares vested.
5. Awards vested on 13 March 2023, on which date the closing market price of shares was £40.26 having been granted 13 March 2020, on which date the
closing market price was £45.36. Awards were made on a share price of £48.126 being the share price obtained by averaging the closing share prices for
the five dealing days before the date of grant.
6. One-third of the LTIP Share Awards are subject to EPS, one-third on Return on Invested Capital and one-third on Adjusted Free Cash Flow. The LTIP shares
will be subject to an additional two-year holding period post-vesting.
7. Awards will vest on 12 March 2024, subject to continued employment or good leaver status, having been granted on 12 March 2021, on which date the
closing market price was £53.06. Awards were made at a share price of £53.36 being the share price obtained by averaging the closing share prices for the
five dealing days before the date of grant.
8. Awards will vest on 27 May 2024, subject to continued employment or good leaver status, having been granted on 27 May 2021 on which date the closing
market price was £54.82. Awards were made at a share price of £58.324 being the share price obtained by averaging the closing share prices for the five
dealing days before the date of grant.
9. Awards will vest on 11 March 2025, subject to continued employment or good leaver status, having been granted on 11 March 2022 on which date the
closing market price was £48.56. Awards were made at a share price of £48.762 being the share price obtained by averaging the closing share prices for
the five dealing days before the date of grant.
closing market price was £57.20. Awards were made at a share price of £56.108, being the share price obtained by averaging the closing share prices for
the five dealing days before the date of grant.
13. Pro-rated awards in line with the Group’s good leaver policy will vest on 1 April 2024, having been granted on 1 April 2021 on which date the closing market
price was £57.20. Awards were made at a share price of £56.108, being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
14. Pro-rated awards in line with the Group’s good leaver policy will vest on 1 April 2024, having been granted on 1 April 2021 on which date the closing market
price was £57.20. Awards were made at a share price of £56.108, being the share price obtained by averaging the closing share prices for the five dealing
days before the date of grant.
15. Pro-rated awards in line with the Group’s good leaver policy Awards will vest on 11 March 2025, subject to continued employment or good leaver status,
having been granted on 11 March 2022 on which date the closing market price was £48.56. Awards were made at a share price of £48.762 being the share
price obtained by averaging the closing share prices for the five dealing days before the date of grant.
16. Appointed as Director on 17 March 2023.
17. Appointed as a Director on 1 April 2021 – ceased to be a Director on 17 March 2023.
Malus and clawback (audited)
Malus and clawback will operate, in respect of the 2011 Long Term Incentive Plan and the 2021 Long Term Incentive Plan, in various circumstances including where there is reasonable evidence of misbehaviour or material error,
conduct considered gross misconduct, breach of any restrictive covenants by participants, conduct which resulted in (a) significant loss(es) to the Company, failure to meet appropriate standards of fitness and propriety, a
material failure of management in the Company, a discovery of a material misstatement in the audited consolidated accounts or the behaviour of a Director has a significant detrimental impact on the reputation of the Group.
Clawback can be applied at any time during the clawback period, which is six years from the date of the award unless extended by the Remuneration Committee prior to the expiry of the initial clawback period.
The Committee has the discretion to reduce annual incentive payments if it believes that short-term performance has been achieved at the expense of the Group’s long-term future or vice versa. The Committee also retains the
discretion to reduce or reclaim payments if the performance achievements are subsequently found to have been significantly misstated.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
Directors’ interests in ordinary shares (audited)
The interests of the Directors in the shares of the Company as at the year-end, or date of ceasing to be a Director, are set out below. Save as stated in this report, during the course of the year, no Director or any member of his or
her immediate family have any other interest in the ordinary share capital of the Company or any of its subsidiaries. None of the Non-Executive Directors have share options or share awards.
André Lacroix5
Colm Deasy6
Jonathan Timmis7
Andrew Martin
Graham Allan
Gurnek Bains
Lynda Clarizio
Tamara Ingram
Jez Maiden
Kawal Preet
Gill Rider
Apurvi Sheth8
Jean-Michel Valette
Beneficially owned at
31 December 2022
Beneficially owned at
31 December 2023 or
on ceasing to be a
Director1
472,425
495,044
n/a
7,574
8,165
2,574
572
221
215
250
–
977
–
10,589
6,182
7,574
8,615
2,719
712
364
355
390
140
1,122
–
10,730
Outstanding
LTIP Share
Awards2
196,508
20,668
20,344
Outstanding
Deferred
Shares3
23,174
1,620
18,869
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Shareholding as
a % of salary4
Shareholding
Guideline met
2,045
62
60
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Yes
No
No
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1. No changes in the above Directors’ interests have taken place between 31 December 2023 and 29 February 2024.
2. Subject to performance conditions.
3. Subject to continued employment or good leaver status.
4. Calculated as the number of shares beneficially owned at 31 December 2023 based on a share price of £42.46 as at 29 December 2023, being the last trading day, and applied to the annual salary for 2023.
5. Appointed 16 May 2015 with the guideline to hold 200% of base salary in shares by 16 May 2020. With effect from the AGM held on 26 May 2021, this was increased to 500% of base salary, which has been exceeded.
6. Appointed 17 March 2023 with a guideline to hold 300% of base salary.
7. As at 17 March 2023, the date he ceased to be a director of the Company. As a former Executive Director a holding of at least the percentage held at the point of leaving must be maintained.
8. Appointed 01 September 2023.
Post-employment share ownership requirements
In line with best practice on the post-cessation of employment shareholding guidelines, Executive Directors
are required to retain shares equivalent to the lower of their actual shareholding and in-employment
shareholding requirement for two years after ceasing employment with Intertek. These will be held in the
Company Nominee account with the date that the holding restriction falls away annotated on the account.
Payments to past Directors (audited)
Ross McCluskey continues to be employed by the Group, as Executive Vice President Europe, Middle East and
Africa, and therefore was not treated as a leaver for the purpose of outstanding incentive awards on ceasing to
be a Director.
Leaving arrangements for Jonathan Timmis (audited)
Jonathan Timmis was entitled to receive salary and other benefits in respect of the period to the termination
date. Entitlement to receive salary and other benefits ends on the termination date. Jonathan was granted
good leaver status in relation to his Deferred and LTIP awards which will be pro-rated and vest in line with the
rules of the share plan. On termination the rights to his buy-out awards lapsed but the Company agreed to a
pro-ration of awards in line with the rules applicable to the Long-Term Incentive plan. Thus 13,026 shares
vested on 1 April 2023, representing the second tranche with a further 8,894 shares representing the final
tranche to vest on 1 April 2024. These additional shares will only vest if he is not employed by or engaged in
any business or organisation (whether as a partner, director, employee secondee, consultant, agent or
otherwise but excluding one non-executive appointment) on the date on which such shares are due to vest.
Jonathan is entitled to a payment of £573,088 as payment in lieu of notice which is being paid in the amounts
and at the times it would have been paid had he continued to work throughout the notice period, only for
periods that he receives no remuneration from any business in, of, or to which he is a partner, director,
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
employee, secondee, consultant or agent. In the event that he does receive such income the amount so
received will be deducted from the monthly salary and pension contributions payable in lieu.
shares are held in the company nominee, and are clearly identified with the date that the two year holding
period expires.
Jonathan was paid his 2022 bonus and he is eligible for a pro-rata annual bonus for the part of 2023 that he
was in the employment of the Group. Any 2023 bonus will be determined by the Remuneration Committee and
will be paid at the time all such bonuses are paid by the employer and Jonathan will be treated consistently with
the other executives. This award will be subject to malus and clawback provisions.
The Company made a payment in respect of the Jonathan Timmis’ legal advisers of £4,000 plus VAT.
Full details of the vesting of Share awards and vestings are included in the share tables earlier in this report as
Jonathan was a director for part of the year. Jonathan is required to continue to hold shares equivalent to his
shareholding at the date of leaving for a further two years. As at the date of leaving he had a holding of 7,574
shares. In addition, he is required to hold any LTIP shares that vest for a further two years post vesting. These
Payments for loss of office (audited)
There were no payments for loss of office other than the payments described above.
Percentage change in remuneration levels
The table below shows the average movement in salary and annual incentive for UK employees between the
2019/20, the 2020/2021, the 2021/2022 and the 2022/2023 financial year-ends. The UK total employee
population has been chosen as a comparator, as the parent company (Intertek Group plc) does not have any
employees apart from the Directors.
Salary %
Annual Incentive %
Benefits%
2019/2020
2020/2021
2021/2022
2022/2023
2019/2020
2020/2021
2021/2022
2022/2023
2019/2020
2020/2021
2021/2022
2022/2023
CEO (André Lacroix1)
CFO (from 17 March 2023) (Colm Deasy2)
Average based on Intertek’s UK employees3
Chair of the Board (from 1 Jan 2021) (Andrew Martin)
Graham Allan
Gurnek Bains
Lynda Clarizio (from 1 March 2021)
Tamara Ingram (from 18 Dec 2020)
Jez Maiden (from 26 May 2022)
Kawal Preet (from 31 December 2022)
Gill Rider
Apurvi Sheth (from 1 September 2023)
Jean-Michel Valette
1.0
n/a
3.2
–
–
–
n/a
n/a
n/a
n/a
–
n/a
–
1.4
n/a
280.4
–
–
–
32.5
n/a
n/a
11.7
n/a
13.9
1.5
n/a
4.1
–
–
–
23.1
11.8
n/a
n/a
1.2
n/a
–
2.0
n/a
3.4
–
–
–
–
2.8
n/a
n/a
–
n/a
–
(24.2)
n/a
(9.9)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a3
(75.3)
241.4
(12.4)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
15.8
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
–
(100.0)
n/a
n/a
n/a
n/a
(63.5)
n/a
(2.3)
n/a
n/a
–
–
–
–
–
n/a
n/a
n/a
n/a
8.2
n/a
n/a
n/a
–
–
350.0
–
n/a
n/a
(100.0)
n/a
(0.8)
n/a
n/a
(10.0)
–
–
–
–
n/a
n/a
–
n/a
–
(48.9)
(25.0)
180.0
1. The percentage change for incentive and benefits for André Lacroix are based on actual amounts earned from 2019, 2020, 2021, 2022 and 2023. The overnight increase in April 2023 was 2.0%.
2. Colm Deasy was appointed on 17 March 2023 as a director.
3. The Intertek UK employee group has been selected as the most appropriate comparator group, due to the diverse nature of the Group’s global employee population.
Non-Executive Director fees are set in advance for all Non-Executive Directors and any changes in salary percentages reflect that one comparator year was not a full year, or the Non-Executive Director changed Committee roles and there was an adjustment to their fees to reflect this, or a general
increase in fees which would be reflected in the table on page 93. Any changes in the Benefits % column would reflect the benefits in kind occurred in the performance of their duties (e.g. expenses for accommodation, travel or meals) – whether there is a claim depends on where the meetings are
held in relation to where the Director's place of work is considered to be or where n/a is shown this indicates that the director was not in role for the full period and the preceding period.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
CEO pay ratio
The following table sets out the CEO’s pay ratio,
comparing the CEO’s total remuneration against that
of UK employees. The table below shows the
required information from 2019 through to 2023.
25th
percentile
pay ratio
Median
pay ratio
75th
percentile
pay ratio
Method
2023
CEO
2022
CEO1
2021
CEO
2020
CEO
2019
CEO
Option B
175:1
124:1
87:1
Option B
112:1
89:1
57:1
Option B
117:1
90:1
56:1
Option B
94:1
72:1
50:1
Option B
205:1
152:1
107:1
1. These ratios have been updated to reflect actual LTI vesting value in
the single pay figure.
The regulations also require the total pay and
benefits and the salary component of total pay to be
set out as follows:
Base
salary
£
Total pay and
benefits
£
CEO remuneration
1,023,034 5, 0 87,9 82
UK employee 25th
percentile
26,225
29,107
UK employee median
36,208
40,879
UK employee 75th
percentile
49,626
58,162
102
In terms of reporting options, the Company chose
option B, using the most recent gender pay gap
information to determine the relevant employees at
the 25th, 50th and 75th percentile to compare to
CEO pay, as that data was already available and is
used for other reporting purposes. It refers to gender
pay data as of 1 April 2023 and uses the single total
figure methodology for the identified individuals. The
pay and benefits for the employees at the quartiles
are their total actual annual pay and benefits as of
31 December 2023.
With regards to representativeness of the ratios,
Intertek is a very diverse employer and has
employees in many UK locations. Our employees
have many different qualifications and are working
in and serving almost all major industries. As a
consequence, it is unlikely that there is any one
single individual whose pay and benefits are
representative of Intertek UK as a whole. Intertek
has therefore also looked at the total pay of the
individuals immediately above and below the 25th,
50th and 75th percentile. Looking at the spread of
resulting ratios, it was decided that the ‘best
equivalent’ would be the arithmetic mean of the total
pay of three individuals around each reporting point:
• For the three employees around the 25th
percentile: Ratios ranged from 169:1 to 178:1, with
an arithmetic mean of 175:1.
• For the three employees around the 50th
percentile: Ratios ranged from 107:1 to 131:1, with
an arithmetic mean of 124:1.
• For the three employees around the 75th
percentile: Ratios ranged from 77:1 to 94:1, with
an arithmetic mean of 87:1.
When calculating total pay and rewards, no pay
components were omitted. The Company used the
calculation methodology as set out in the relevant
regulations (The Companies (Miscellaneous Reporting)
Regulations 2018). For part-time employees, their
relevant pay and benefit components have been
adjusted to the equivalent full-time figure for the
relevant business. Full-time equivalent hours can vary
across locations and legal entities.
The pay ratio reflects how remuneration arrangements differ as responsibility increases for more senior roles
in the organisation, including reflecting that an increased proportion is based on performance-related variable
pay and short-term based incentives for more senior executives. The Committee is therefore comfortable that
the pay ratio reflects the pay and progression policies at Intertek.
Relative importance of the spend on pay
The table below shows the movement in spend on staff costs between the 2022 and 2023 financial years,
compared to dividends.
Staff costs1
Dividends
2023
£m
2022
£m
1,450.2
1,394.7
176.3
170.6
%
change
4.0%
3.3%
1. Staff costs are shown at actual rates. At constant currency, staff costs increased by 6.5%, reflecting a 2.5% foreign exchange impact.
Performance graph
Consistent with prior years, the graph alongside shows the TSR in respect of the Company over the last ten
financial years, compared with the TSR for the full FTSE 100 Index. The FTSE 100 is selected as the
comparator group as it is a good representation of peer group companies and Intertek is a constituent of the
FTSE 100. TSR, reflecting the change in the value of a share and dividends paid, can be represented by the
value of a notional £100 invested at the beginning of a period and its change over that period.
£
250
200
150
100
50
0
2013
Intertek Group
FTSE 100
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Remuneration Committee report Continued
CEO total remuneration
The total remuneration figures for the CEO during each of the past ten financial years are shown in the table below. Consistent with the calculation methodology for the single figure for total remuneration, the total
remuneration figure includes the total annual incentive and Deferred Share Award based on that year’s performance and LTIP share awards based on the three-year performance period ending in the relevant year. The annual
incentive payout and LTIP award vesting level as a percentage of the maximum opportunity are also shown for each of these years.
Total remuneration £’000
Annual incentive (%)
LTIP award vesting (%)
2014
2,011
38.4
25.2
W Hauser
2015
A Lacroix
2015
876
90.6
–
1,824
96.6
–
2016
2017
5,4521
11,4171
70.2
–
100.0
90.9
2018
6,223
75.5
98.3
2019
4,986
52.3
89.4
2020
2,470
0.0
41.5
2021
2022
2023
3,048
3,080
5,088
85.0
0.0
20.6
66.7
68.9
100.0
1. As reported in previous years, at the time of joining, the Company had bought out André’s existing share awards with his previous employer in two tranches of 91,575 and 91,574 shares vesting in 2016 and 2017, each at an award price of £28. The tranche that vested in 2017 vested at a share price of £42.95, which
represents an increase in our Company share price over the two years of over 53%. These awards were one-off awards and not part of his ongoing remuneration.
The graph below shows the total remuneration of the Intertek CEO over the ten-year period from 2014 to 2023.
£’000
12,000
10,000
8,000
6,000
4,000
2,000
0
Mirror awards
LTIP (share price increase)4
LTIP (award share price)3
Annual incentive
Pension
Benefits
Salary
2014
2015 (WH)1
2015 (AL)2
2016
2017
2018
2019
2020
2021
2022
2023
1. Shows W Hauser remuneration based on period to 15 May 15
2. Shows A Lacroix remuneration for the period from appointment as CEO on 6 May 15
3.
4.
LTIP (award share price) shows the proportion of the LTIP value received which resulted from the share price on award date
LTIP (share price increase) shows the proportion of the LTIP value received which resulted from increase in the share price over the vesting period
Approval of the Directors’ Remuneration report
The Directors’ Remuneration report, including both the Directors’ Remuneration Policy and the Annual report on remuneration, was approved by the Board on 4 March 2024.
Gill Rider
Chair of the
Remuneration Committee
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Other Statutory Information
Other Statutory Information
For the purposes of LR 9.8.4C R, the information required to be disclosed by LR 9.8.4 R can be found in the table below.
Topic
Location and page
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Amount of interest capitalised
Any information required by LR 9.2.18 R (Publication of
unaudited financial information)
Details of long-term incentive schemes
Waiver of emoluments by a Director
Waiver of future emoluments by a Director
Non pre-emptive issues of equity for cash
Information required by (6) above for any unlisted major
subsidiary undertaking of the Company
Company participation in a placing by a listed subsidiary
Any contracts of significance
Any contracts for the provision of services by a controlling shareholder
Shareholder waivers of dividends
12.
Shareholder waivers of future dividends
13.
Agreements with controlling shareholders
Not applicable
Not applicable
Directors’ Remuneration Committee
report (pages 78-103)
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Other statutory information
(page 106)
Not applicable
Other statutory information
(page 105)
Other statutory information
(page 105)
Not applicable
In accordance with the requirements of the
Companies Act 2006 (‘Act’) and the Disclosure
Guidance and Transparency Rules (‘DTR’) of
the Financial Conduct Authority (‘FCA’), the
following section describes the matters that
are required for inclusion in the Directors’
Report and were approved by the Board. Further
details of matters required to be included in
the Directors’ Report that are incorporated by
reference into this report are set out below.
Annual Report & Accounts and compliance
with Listing Rule (‘LR’) 9.8.4 R
The Annual Report & Accounts is in a three book
format: Book one – Strategic report; Book two –
Sustainability report/Directors' report; and Book
three – Financial report. The Board has prepared
a Strategic report in Book one which provides an
overview of the development and performance
of the Company’s business together with any
research and development activities during the
year ended 31 December 2023 and its position
at the end of that year. The Strategic report also
outlines any important events since the end of the
financial year and also likely future developments
in the business of the Company and Group.
For the purposes of compliance with DTR 4.1.5
R (2) and DTR 4.1.8 R, the required content
of the management report can be found in
the Strategic report and this Directors’ report
in Book two, including the sections of the
Annual Report & Accounts, being Books one,
two and three, incorporated by reference.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Other Statutory Information Continued
Directors
The names of the members of the Board, as at
the date of this report, and their biographical
details are set out on pages 50-52. During the
year, Colm Deasy was appointed as Chief Financial
Officer and Apurvi Sheth was appointed as Non-
Executive Director of the Board on 17 March
2023 and 1 September 2023, respectively.
These provisions, which are deemed to be qualifying
third-party indemnity provisions (as defined by
section 234 of the Act), were in force during the
financial year ended 31 December 2023, for the
benefit of the Directors and, at the date of this
report, remain in force in relation to certain losses
and liabilities which they may incur (or have incurred)
in connection with their duties, powers or office.
Articles of Association
The Company’s Articles of Association contain
provisions relating to the retirement, election and
re-election of Directors but, in accordance with best
practice, all Directors who wish to continue to serve
will stand for election and re-election at the Annual
General Meeting (‘AGM’).
The Articles of Association set out the internal
regulation of the Company and cover such matters
as the rights of shareholders, the appointment
or removal of Directors and the conduct of
the Board and general meetings. Copies are
available upon request from the Group Company
Secretary and are available at the Company’s
AGM. Further powers are granted by members
in general meetings and those currently in
place are set out in detail on the next page.
Directors’ indemnities
The Board believes that it is in the best interests
of the Group to attract and retain the services
of the most able and experienced Directors by
offering competitive terms of engagement,
including the granting of indemnities on terms
consistent with the applicable statutory provisions.
In accordance with the Articles of Association, the
Company has executed deed polls of indemnity
for the benefit of the Directors of the Company.
Directors’ interests
Other than the Directors’ service agreements
or letters of appointment, none of the Directors
of the Company had a personal interest in any
business transactions of the Company or its
subsidiaries. The terms of the Directors’ service
agreements or letters of appointment and the
Directors’ interests in shares and share awards
of the Company, in respect of which transactions
are notifiable to the Company and the FCA under
Article 19 of the UK Market Abuse Regulation, are
disclosed in the Directors’ Remuneration report.
Directors’ powers
The Directors are responsible for the strategic
management of the Company and their powers
to do so are determined by the provisions of the
Act and the Company’s Articles of Association.
Dividend
The Directors are recommending a final dividend of
74.0p per ordinary share (2022: 71.6p) making a
full-year dividend of 111.7p per ordinary share (2022:
105.8p) which will, if approved at the AGM, be paid on
21 June 2024 to shareholders on the register at the
close of business on 31 May 2024.
Share capital
The issued share capital of the Company
and the details of the movements in the
Company’s share capital during the year
are shown in note 15 in Book three.
The holders of ordinary shares are entitled to receive
dividends when declared, receive the Company’s
Annual Report & Accounts, attend and speak at
general meetings of the Company, appoint proxies
and exercise voting rights. A waiver of dividend
exists in respect of the 149,779 shares held by
the Intertek Group Employee Share Ownership
Trust (‘Trust’) as of 31 December 2023 and with
respect to future dividends. Details of the shares
purchased by the Trust during the year are outlined
in note 15 in Book three. There are no restrictions
on the transfer of ordinary shares in the Company.
The rights attached to shares in the Company are
provided by the Articles of Association, which may be
amended or replaced by means of a special resolution
of the Company in a general meeting. The Directors’
powers are conferred on them by UK legislation
and by the Company’s Articles of Association.
No ordinary shares carry any special rights with
regard to the control of the Company and there
are no restrictions on voting rights except that
a shareholder has no right to vote in respect of
a share unless all sums due in respect of that
share are fully paid. There are no arrangements
known to the Company by which financial rights
carried by any shares in the Company are held by
a person other than the holder of the shares, nor
are there any arrangements between holders of
securities that may result in restrictions on the
transfer of securities or on voting rights known
to the Company. All issued shares are fully paid.
Shares are admitted to trading on the
London Stock Exchange and may be
traded through the CREST system.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Other Statutory Information Continued
Allotment of shares
At the AGM held in 2023, the shareholders generally
and unconditionally authorised the Directors to allot
relevant securities up to approximately two-thirds
of the nominal amount of issued share capital.
It is the Directors’ intention to seek renewal
of this authority in line with guidance issued
by the Investment Association. The resolution
will be set out in the Notice of AGM.
At the AGM held in 2023, the Directors were
also empowered by the shareholders to allot
equity securities, up to 5% of the Company’s
issued share capital, for cash under section 570
of the Act. It is intended that this authority
be renewed at the forthcoming AGM.
It is the Board’s intention to also propose the
renewal of the additional special resolution to
allow the Company to allot equity securities
up to a further 5% of the Company’s issued
share capital. This is applicable when the Board
determines a transaction to be an acquisition
or other capital investment and is announced
contemporaneously with the allotment or has
taken place in the preceding six-month period and
is disclosed in the announcement of the allotment.
Purchase of own shares
Shareholders also approved the authority for the
Company to buy back up to 10% of its own ordinary
shares by market purchase until the conclusion of the
AGM to be held this year. The Directors will seek to
renew this authority for up to 10% of the Company’s
issued share capital at the forthcoming AGM. This
power will only be exercised if the Directors are
satisfied that any purchase will increase the earnings
per share of the ordinary share capital in issue after
the purchase, and accordingly, that the purchase is
in the interests of shareholders. The Directors will
also give careful consideration to gearing levels
of the Company and its general financial position.
Any shares purchased in this way may be held in
treasury which, the Directors believe, will provide
the Company with flexibility in the management of
its share capital. Where treasury shares are used
to satisfy Share Awards, they will be classed as
new issue shares for the purpose of the 10% limit
on the number of shares that may be issued over a
ten-year period under the relevant share plan rules.
The Company currently holds no shares in treasury.
Significant agreements
The Company is not a party to significant
agreements which take effect, alter or terminate
upon a change of control following a takeover
bid apart from a number of credit facilities with
banks together with certain senior notes issued
by the Company. The total amount owing under
such credit facilities and senior note agreements
as of 31 December 2023 is shown in note 14
to the financial statements. These agreements
contain clauses such that, in the event of a
change of control, the Company can offer to or
must repay all such borrowings together with
accrued interest, fees and other sums owing
as required by the individual agreements.
The rules of the Company’s incentive plans contain
clauses relating to a change of control resulting
from a takeover and, in such an event, awards would
vest subject to the satisfaction of any associated
performance criteria. The Company is not aware
of any other agreements with change of control
provisions that are considered to be significant in
terms of their potential impact to the business.
There are no significant agreements or contracts
in place with any Group Company and a Director
of the Company or a major shareholder.
Material interests in shares
Up to 4 March 2024, being the latest practicable
date before the publication of this report, the
following disclosures of major holdings of voting
rights have been made (and have not been amended
or withdrawn) to the Company pursuant to the
requirements of Rule 5 of the DTR of the FCA (‘DTR 5’).
The Company is not aware of any changes in the
interests disclosed under DTR 5 since the year-end.
At date of notification
Shareholder
BlackRock Inc.
Fiera Capital Corporation
Massachusetts Financial Services Company
Direct voting
rights
Indirect voting
rights
Percentage of
voting rights
attached to
shares
Voting rights
through financial
instruments
Percentage of
voting rights
through financial
instruments
Total voting
rights
Percentage of
total voting
rights
–
–
–
10,473,019
6.49%
1,392,394
0.85%
11,865,413
8,010,553
8,004,731
4.96%
4.96%
–
–
–
–
8,010,553
8,004,731
7.34%
4.96%
4.96%
These holdings are published on a Regulatory Information Service and on the Company’s website.
106
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Other Statutory Information Continued
Our people
Information about the Group’s employees,
employment of disabled persons policies and
employment practices is contained within this
report on pages 10-17. Information on the employee
share schemes is in the Directors’ Remuneration
report and in Book three, pages 38-39. The steps
by the Company taken to inform, engage and
consult with employees is outlined in page 59
and in the Section 172 statement on page 56.
Stakeholders
Information on the steps by the Company taken to
inform, engage and consult with our stakeholders is
outlined in pages 56-61 and in the Section 172
statement on page 56.
Energy Use and Greenhouse Gas emissions
(‘GHG’)
Information about the Group’s energy use, GHGs and
methodologies used for the calculations are given in
this report on pages 26-30.
Task Force on Climate-Related Financial
Disclosures ('TCFD')
The climate-related financial disclosures consistent
with TCFD recommendations are in Book one.
Political donations
At the AGM in 2023, shareholders passed an
ordinary resolution, on a precautionary basis,
to authorise the Company to make donations
to EU political organisations and to incur
EU political expenditure (as such items are
defined in the Act) not exceeding £90,000.
During the year the Group did not make any
such political donations (2022: £nil). It is the
Company’s policy not, directly or through
any subsidiary, to make what are commonly
regarded as donations to any political party.
At the forthcoming AGM of the Company,
shareholders’ approval will again be sought to
authorise the Group to make political donations
and/or incur political expenditure (as such terms are
defined in section 362 to 379 of the Act). Further
information is contained in the Notice of AGM.
Branches
The Company, through various subsidiaries,
has established branches in a number of
different countries in which the business
operates. The list of related undertakings
is available in note 23 in Book three.
Independent auditors
The auditor, PricewaterhouseCoopers LLP,
have expressed their willingness to continue in
office. Upon the recommendation of the Audit
Committee, a resolution to reappoint them as
auditors and to determine their remuneration
will be proposed at the forthcoming AGM.
Financial instruments
Details about the Group’s use of financial
instruments are outlined in note 14 in Book three.
Annual General Meeting
The Notice of AGM, which is to be held on
24 May 2024, is available for download from the
Company’s website at intertek.com/investors.
The Notice details the business to be conducted
at the meeting and includes information
concerning the deadlines for submitting proxy
forms and in relation to voting rights.
Statement of disclosure of
information to auditors
The Directors who held office at the date of approval
of this Directors’ Report confirm that, so far as they
are aware, there is no relevant audit information of
which the Company’s auditors are unaware and each
Director has taken all reasonable steps that he or she
ought to have taken as a Director of the Company
to make themselves aware of any relevant audit
information and to establish and ensure that the
Company’s auditors are aware of that information.
107
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Statement of Directors Responsibilities
Statement of Directors Responsibilities
in respect of the financial statements
The Directors are responsible for preparing
the Annual Report & Accounts and the
financial statements in accordance with
applicable law and regulation.
The Directors are responsible for safeguarding
the assets of the Group and Company and hence
for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Company law requires the Directors to prepare
financial statements for each financial year.
Under that law the Directors have prepared
the Group financial statements in accordance
with UK-adopted international accounting
standards and the Company financial statements
in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 101 'Reduced
Disclosure Framework', and applicable law).
Under company law, Directors must not approve
the financial statements unless they are satisfied
that they give a true and fair view of the state of
affairs of the Group and Company and of the profit
or loss of the Group for that period. In preparing the
financial statements, the Directors are required to:
• select suitable accounting policies and then apply
them consistently;
• state whether applicable UK-adopted international
accounting standards have been followed for the
Group financial statements and United Kingdom
Accounting Standards, comprising FRS 101, have
been followed for the Company financial
statements, subject to any material departures
disclosed and explained in the financial
statements;
• make judgements and accounting estimates that
are reasonable and prudent; and
• prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the Group and Company will continue in
business.
108
The Directors are also responsible for keeping
adequate accounting records that are sufficient
to show and explain the Group’s and Company’s
transactions and disclose with reasonable
accuracy at any time the financial position
of the Group and Company and enable them
to ensure that the financial statements
and the Directors’ Remuneration report
comply with the Companies Act 2006.
The Directors are responsible for the maintenance
and integrity of the Company’s website. Legislation
in the United Kingdom governing the preparation
and dissemination of financial statements may
differ from legislation in other jurisdictions.
Directors’ confirmations
The Directors consider that the Annual
Report & Accounts, taken as a whole, is fair,
balanced and understandable and provides
the information necessary for shareholders to
assess the Group’s and Company’s position and
performance, business model and strategy.
Each of the Directors, whose names and
functions are listed in the Directors’ Report,
confirm that, to the best of their knowledge:
• the Group financial statements, which have been
prepared in accordance with UK-adopted
international accounting standards, give a true and
fair view of the assets, liabilities, financial position
and profit of the Group;
• the Company financial statements, which have
been prepared in accordance with United Kingdom
Accounting Standards, comprising FRS 101, give a
true and fair view of the assets, liabilities and
financial position of the Company; and
• the Strategic Report includes a fair review of the
development and performance of the business and
the position of the Group and Company, together
with a description of the principal risks and
uncertainties that it faces.
In the case of each Director in office at the date the
Directors’ Report is approved:
• so far as the Director is aware, there is no relevant
audit information of which the Group’s and
Company’s auditors are unaware; and
• they have taken all the steps that they ought to
have taken as a Director in order to make
themselves aware of any relevant audit
information and to establish that the Group’s and
Company’s auditors are aware of that information.
André Lacroix
Chief Executive Officer
4 March 2024
Registered Office:
33 Cavendish Square, London W1G 0PS
Registered Number: 04267576
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report CBP00019082504183028
Printed by a CarbonNeutral® Company certified to
ISO 14001 environmental management system.
Printed on material from well-managed, FSC®
certified forests and other controlled sources.
100% of the inks used are vegetable oil based,
95% of press chemicals are recycled for further use
and, on average 99% of any waste associated with
this production will be recycled and the remaining
1% used to generate energy.
The paper is Carbon Balanced with World Land
Trust, an international conservation charity, who
offset carbon emissions through the purchase and
preservation of high conservation value land.
Through protecting standing forests, under
threat of clearance, carbon is locked-in, that
would otherwise be released.
Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com
Page Heading continued
We are pleased to share our
Annual Report & Accounts
in a unique, three-book format:
Book one: Strategic Report
Book three: Financial Report
Where we discuss our growth
opportunities and strategic performance.
Contents
Book two: Sustainability Report
Where we discuss our environmental,
social and governance progress.
Book three: Financial Report
Where we record our financial activities,
performance and position.
These separate, but connected books,
with their interconnected themes and
narratives, allow us to present what
we achieved in 2023 in a systemic,
end-to-end framework. They have
been designed to make it easier for our
stakeholders to fully understand our
business, how we bring quality, safety
and sustainability to life, what we
offer our clients and society, and the
opportunities ahead of us.
01 Consolidated income statement
02 Consolidated statement
of comprehensive income
03 Consolidated statement
of financial position
04 Consolidated statement
of changes in equity
06 Consolidated statement
of cash flows
07 Notes to the financial statements
51 Intertek Group plc –
Company balance sheet
52 Intertek Group plc – Company
statement of changes in equity
53 Notes to the Company
financial statements
57 Independent Auditors’ Report
64 Glossary – Alternative
performance measures
67 Shareholders and corporate
information
Let's make the world
amazing together
and deliver sustainable growth
and value for all
Visit: intertek.com/investors
Intertek Group plc
Annual Report & Accounts 2023
Book one: Strategic Report
Book two: Sustainability Report
Book three: Financial Report
For the year ended 31 December
Revenue
Operating costs
Group operating profit/(loss)
Finance income
Finance expense
Net financing costs
Profit/(loss) before income tax
Income tax (expense)/credit
Profit/(loss) for the year
Attributable to:
Equity holders of the Company
Non-controlling interest
Profit/(loss) for the year
Earnings per share**
Basic
Diluted
See note 3.
*
** Earnings per share on the adjusted results is disclosed in note 7.
Consolidated income statement
Notes
2
4
2
14
14
6
2
20
7
7
Separately
Disclosed
Items*
£m
Total
2023
£m
Adjusted
results*
£m
Separately
Disclosed
Items*
£m
Adjusted
results*
£m
3,328.7
(2,777.6)
551.1
3.8
(47.7)
(43.9)
507.2
–
(64.9)
(64.9)
–
(20.0)
(20.0)
(84.9)
3,328.7
(2,842.5)
3,192.9
(2,672.8)
486.2
520.1
3.8
(67.7)
(63.9)
2.2
(34.1)
(31.9)
422.3
488.2
(124.8)
20.6
(104.2)
(128.4)
382.4
(64.3)
318.1
359.8
361.7
20.7
382.4
(64.3)
–
(64.3)
297.4
20.7
318.1
341.8
18.0
359.8
184.4p
183.4p
–
(67.7)
(67.7)
–
(0.7)
(0.7)
(68.4)
15.4
(53.0)
(53.0)
–
(53.0)
Total
2022
£m
3,192.9
(2,740.5)
452.4
2.2
(34.8)
(32.6)
419.8
(113.0)
306.8
288.8
18.0
306.8
179.2p
178.4p
01
Intertek Group plc
Annual Report & Accounts 2023
Book one: Strategic Report
Book two: Sustainability Report
Book three: Financial Report
Consolidated statement of comprehensive income
Notes
2023
£m
2022
£m
2
318.1
306.8
16
6
(2.6)
3.0
0.4
(147.1)
58.8
(0.1)
(88.4)
(88.0)
17.4
(4.3)
13.1
181.5
(120.0)
–
61.5
74.6
230.1
381.4
20
211.6
18.5
230.1
363.1
18.3
381.4
For the year ended 31 December
Profit for the year
Other comprehensive (expense)/income
Remeasurements on defined benefit pension schemes
Tax on comprehensive income items
Items that will never be reclassified to profit or loss
Foreign exchange translation differences of foreign operations
Net exchange gain/(loss) on hedges of net investments in foreign operations
Loss on fair value of cash flow hedges
Items that are or may be reclassified subsequently to profit or loss
Total other comprehensive (expense)/income for the year
Total comprehensive income for the year
Total comprehensive income for the year attributable to:
Equity holders of the Company
Non-controlling interest
Total comprehensive income for the year
02
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Consolidated statement of financial position
As at 31 December
Equity
Share capital
Share premium
Other reserves
Retained earnings
Notes
15
Total equity attributable to equity holders of the Company
Non-controlling interest
20
Total equity
2023
£m
2022
£m
1.6
257.8
(127.5)
1,191.5
1,323.4
36.7
1.6
257.8
(41.3)
1,065.9
1,284.0
34.0
1,360.1
1,318.0
* Working capital of negative £78.8m (2022: negative £47.8m) comprises the asterisked items in the above statement of financial position
less the IFRS 16 lease receivable of £1.6m (2022: £2.9m).
The financial statements on pages 1 to 50 were approved by the Board on 4 March 2024 and were signed on
its behalf by:
André Lacroix
Chief Executive Officer
Colm Deasy
Chief Financial Officer
As at 31 December
Assets
Property, plant and equipment
Goodwill
Other intangible assets
Trade and other receivables
Defined benefit pension asset
Deferred tax assets
Total non-current assets
Inventories*
Trade and other receivables*
Cash and cash equivalents
Current tax receivable
Total current assets
Total assets
Liabilities
Interest-bearing loans and borrowings
Current taxes payable
Lease liabilities
Trade and other payables*
Provisions*
Total current liabilities
Interest-bearing loans and borrowings
Lease liabilities
Deferred tax liabilities
Defined benefit pension liabilities
Trade and other payables*
Provisions*
Total non-current liabilities
Total liabilities
Net assets
03
Notes
2023
£m
2022
£m
8
9
9
11
16
6
11
14
14
14
12
13
14
14
6
16
12
13
669.6
1,385.8
330.9
21.8
21.8
36.4
694.4
1,418.4
362.9
21.5
21.3
45.0
2,466.3
2,563.5
17.2
725.1
299.3
30.0
16.9
726.4
321.6
31.9
1,071.6
1,096.8
3,537.9
3,660.3
(97.5)
(60.5)
(69.9)
(735.6)
(18.0)
(262.4)
(71.0)
(70.6)
(723.2)
(15.8)
(981.5)
(1,143.0)
(812.4)
(237.9)
(75.3)
(4.8)
(30.1)
(35.8)
( 797.1)
(251.6)
(99.2)
(2.2)
(34.6)
(14.6)
(1,196.3)
(1,199.3)
(2,177.8)
(2,342.3)
1,360.1
1,318.0
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Consolidated statement of changes in equity
For the year ended 31 December
At 1 January 2022
Total comprehensive income for the year
Profit
Other comprehensive income
Total comprehensive income for the year
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to the owners of the Company
Dividends paid
Changes in non-controlling interest
Purchase of own shares
Tax paid on Share Awards vested*
Equity-settled transactions
Income tax on equity-settled transactions
Total contributions by and distributions to the owners of the Company
Attributable to equity holders of the Company
Other reserves
Notes
Share capital
£m
Share
premium
£m
Translation
reserve
£m
1.6
257.8
(108.9)
Total before
non-
controlling
interest
£m
Non-
controlling
interest
£m
Retained
earnings
£m
Total
equity
£m
925.1
1,082.0
32.3
1,114.3
Other
£m
6.4
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
61.2
61.2
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
288.8
13.1
301.9
288.8
74.3
363.1
(170.6)
–
(2.3)
(4.4)
17.5
(1.3)
(161.1)
(170.6)
–
(2.3)
(4.4)
17.5
(1.3)
(161.1)
18.0
0.3
18.3
(16.6)
–
–
–
–
–
(16.6)
306.8
74.6
381.4
( 187.2)
–
(2.3)
(4.4)
17.5
(1.3)
( 177.7 )
15
20
15
17
17
6
At 31 December 2022
1.6
257.8
(47.7)
6.4
1,065.9
1,284.0
34.0
1,318.0
*
The tax paid on Share Awards vested is related to settlement of the tax obligation on behalf of employees by the Group via the sale of a portion of the equity-settled shares.
04
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Consolidated statement of changes in equity Continued
For the year ended 31 December
At 1 January 2023
Total comprehensive income for the year
Profit
Other comprehensive (expense)/income
Total comprehensive income for the year
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to the owners of the Company
Dividends paid
Changes in non-controlling interest
Purchase of own shares
Tax paid on Share Awards vested*
Equity-settled transactions
Income tax on equity-settled transactions
Total contributions by and distributions to the owners of the Company
Attributable to equity holders of the Company
Other reserves
Notes
Share capital
£m
Share
premium
£m
Translation
reserve
£m
Other
£m
Retained
earnings
£m
Total before
non-
controlling
interest
£m
Non-
controlling
interest
£m
Total
equity
£m
1.6
257.8
(47.7)
6.4
1,065.9
1,284.0
34.0
1,318.0
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15
20
15
17
17
6
–
(86.1)
(86.1)
–
(0.1)
(0.1)
297.4
0.4
297.8
297.4
(85.8)
211.6
20.7
(2.2)
18.5
318.1
(88.0)
230.1
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(176.3)
–
(11.6)
(5.6)
21.2
0.1
(176.3)
–
(11.6)
(5.6)
21.2
0.1
(15.1)
(0.7)
–
–
–
–
(191.4)
(0.7)
(11.6)
(5.6)
21.2
0.1
(172.2)
(172.2)
(15.8)
(188.0)
At 31 December 2023
1.6
257.8
(133.8)
6.3
1,191.5
1,323.4
36.7
1,360.1
*
The tax paid on Share Awards vested is related to settlement of the tax obligation on behalf of employees by the Group via the sale of a portion of the equity-settled shares.
05
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Consolidated statement of cash flows
Notes
2023
£m
2022
£m
For the year ended 31 December
Cash flows from financing activities
Purchase of own shares
Tax paid on share awards vested
Drawdown of borrowings
Repayment of borrowings
Repayment of lease liabilities*
Purchase of non-controlling interest
Dividends paid to non-controlling interest
Equity dividends paid
Net cash flow generated from/(used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
Notes
15
20
14
14
14
14
2023
£m
2022
£m
(11.6)
(5.6)
160.5
(249.6)
(77.8)
(0.7)
(15.1)
(176.3)
(2.3)
(4.4)
477.2
(536.8)
(81.4)
–
(16.6)
(170.6)
(376.2)
(334.9)
13.7
320.7
(35.8)
298.6
51.7
264.0
5.0
320.7
The notes on pages 7 to 50 are an integral part of these consolidated financial statements.
Cash outflow relating to Separately Disclosed Items was £23.1m for year ended 31 December 2023
(2022: £17.9m).
*
Free cash flow of £355.3m (2022: £368.4m) comprises the asterisked items in the above consolidated statement of cash flows.
For the year ended 31 December
Cash flows from operating activities
Profit for the year
Adjustments for:
Depreciation charge
Amortisation of software
Amortisation of acquisition intangibles
Impairment of goodwill and other assets
Equity-settled transactions
Net financing costs
Income tax expense
Profit on disposal of property, plant, equipment and software
Operating cash flows before changes in working capital
and operating provisions
Change in inventories
Change in trade and other receivables
Change in trade and other payables
Change in provisions
Special contributions into pension schemes
Cash generated from operations
Interest and other finance expense paid
Income taxes paid
Net cash flows generated from operating activities*
Cash flows from investing activities
Proceeds from sale of property, plant, equipment and software*
Interest received*
Acquisition of subsidiaries, net of cash acquired
Consideration paid in respect of prior year acquisitions
Acquisition of property, plant, equipment and software*
2
318.1
306.8
8
9
9
8,9
17
14
6
16
10
156.0
19.3
34.2
2.6
21.2
63.9
104.2
(3.2)
716.3
(1.2)
(41.2)
47.7
4.3
–
725.9
(71.9)
(119.0)
535.0
11.5
3.5
(40.5)
(2.7)
(116.9)
160.2
20.3
34.8
15.3
17.5
32.6
113.0
(0.4)
700.1
(0.8)
(54.3)
61.1
–
(2.0)
704.1
( 37.5 )
(106.7)
559.9
4.2
2.2
(63.2)
–
(116.5)
Net cash flows used in investing activities
(145.1)
(173.3)
06
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Notes to the financial statements
1 Material accounting policies
Basis of preparation
Accounting policies applicable to more than one section of the financial statements are shown below. Where
accounting policies relate to a specific note in the financial statements, they are set out within that note, to
provide readers of the financial statements with a more useful layout to the financial information presented.
Statement of compliance
Intertek Group plc is a public company incorporated in England & Wales and domiciled in the UK, limited
by shares.
In addition, the Group’s financial forecasts for 2024 and 2025, and the related liquidity position and forecast
compliance with debt covenants, have been sensitised for a severe yet plausible decline in economic conditions
(including an illustrative sensitivity scenario of a reduction of 30% to the base profit forecasts and the
corresponding impact to cash flow forecasts in each of these years). In addition, reverse stress testing has
also been applied to the model which represents a significant decline in cash flows compared with the 30%
downside sensitivity. Such a scenario is considered to be remote. The Board remains satisfied with the Group’s
funding and liquidity position, with the Group forecast to remain within its committed facilities and compliant
with debt covenants even following the 30% downside sensitivity. The sensitivity modelling excludes
additional mitigating actions (e.g. dividend cash payments, non-essential overheads and non-committed
capital expenditure) that are within management control and could be initiated if deemed required.
The Group financial statements as at and for the year ended 31 December 2023 consolidate those of
the Company and its subsidiaries (together referred to as the ‘Group’) and include the Group’s interests
in associates. Intertek Group plc transitioned to UK-adopted international accounting standards in its
consolidated financial statements on 1 January 2021. There was no impact or changes in accounting policies
from the transition. The Group financial statements have been prepared by the Directors in accordance with
these accounting standards in conformity with the requirements of the Companies Act 2006. The Company
financial statements present information about the Company as a separate entity and not about its Group.
The Company has elected to prepare its Company financial statements in accordance with UK GAAP,
comprising FRS 101 and applicable law; these are presented on pages 51 to 56.
Significant new accounting policies and standards
There are no significant new accounting standards or amendments to accounting standards that are effective
for annual periods beginning on or after 1 January 2023 that have a material effect on the results of the Group.
Changes in accounting policies
The accounting policies set out in these financial statements have been applied consistently to all years
presented, apart from those disclosed below. There are no new accounting standards that are effective for
annual periods beginning on or after 1 January 2023 that have a material effect on the consolidated financial
statements of the Group. There are no accounting standards that are issued but not yet effective that are
expected to have a material effect on the consolidated financial statements of the Group.
Measurement convention
The financial statements are prepared on the historical cost basis except as discussed in the relevant
accounting policies.
Functional and presentation currency
These consolidated financial statements are presented in sterling, which is the Company’s functional currency.
All information presented in sterling has been rounded to the nearest £0.1m.
Going concern
The Group has a broad customer base across its multiple business lines and in its different geographic regions
and is supported by a robust balance sheet and strong operational cash flows.
The Board has reviewed the Group’s financial forecasts up to 31 December 2025 to assess both liquidity
requirements and debt covenants.
07
The undrawn headroom on the Group’s committed borrowing facilities at 31 December 2023 was £664.3m
(2022: £707.3m). The maturity of our borrowing facilities is disclosed in note 14 of the financial statements,
with repayment of two senior notes totalling US$125m required by 31 December 2024. Our models forecast
these to be repaid using existing facilities. Full details of the Group’s borrowing facilities and maturity profile
are outlined in note 14.
On the basis of its forecasts to 31 December 2025, both base case and the severe but plausible downside,
and available facilities, the Board has concluded that there are no material uncertainties over going concern,
including no anticipated breach of covenants, and therefore the going concern basis of preparation continues
to be appropriate.
Consideration of climate change
In preparing the financial statements, we have considered the impact of climate change (refer to Book one,
page 58 for further information). There is no material impact on the financial reporting judgements and
estimates arising from our considerations, which is consistent with the assertion that risks associated with
climate change are not expected to have a material impact on the viability of the Group in the short, medium
and long term. Specifically we note the following:
• The Group continues to invest in on-site renewable energy generation at our locations.
• We have specifically considered the impact of climate change on the carrying value of fixed assets
(see note 8).
• The Group has not bought carbon credits in 2023 (2022: £nil) to offset our measured scope 1, 2 and 3
GHG emissions.
Government grants
Government grants are recognised in the income statement so as to match them with the related expenses
that they are intended to compensate. Where grants are received in advance of the related expenses, they are
initially recognised in the balance sheet and released to match the related expenditure. Non-monetary grants
are recognised at fair value. The related cash flow is classified in accordance with the nature of the activity.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report 1 Material accounting policies Continued
Basis of consolidation
Subsidiaries
Subsidiaries are those entities controlled by the Group. Control exists when the Group has power to direct the
relevant activities, exposure to variable returns from the investee and the ability to use its power over the
investee to affect the amount of investor returns. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
For purchases of non-controlling interest in subsidiaries, the difference between the cost of the additional
interest in the subsidiary and the non-controlling interest’s share of the assets and liabilities reflected in the
consolidated statement of financial position at the date of acquisition is reflected directly in shareholders’ equity.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains and losses or income and expenses arising from
intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at
the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities (for example,
cash, trade receivables, trade payables) denominated in foreign currencies at the reporting date are translated
at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are
generally recognised in the income statement. Non-monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
For the policy on hedging of foreign currency transactions see note 14.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to sterling at foreign exchange rates ruling at the reporting date.
The income and expenses of foreign operations are translated into sterling at cumulative average rates
of exchange during the year. Exchange differences arising from the translation of foreign operations are
taken directly to equity in the translation reserve. They are released to the income statement upon disposal.
For the policy on net investment hedging see note 14.
The most significant currencies for the Group were translated at the following exchange rates:
Value of £1
US dollar
Euro
Chinese renminbi
Hong Kong dollar
Australian dollar
08
Assets and liabilities
Actual rates
Income and expenses
Cumulative average rates
31 December
2023
31 December
2022
1.28
1.15
9.14
10.00
1.87
1.20
1.13
8.45
9.37
1.78
2023
1.24
1.15
8.81
9.71
1.87
2022
1.24
1.17
8.31
9.68
1.78
Key estimations and uncertainties
The preparation of financial statements in conformity with IFRSs (‘International Financial Reporting Standards’)
requires management to make judgements and estimates that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the year in which the estimates are revised and in any future years affected.
Discussed below are key assumptions concerning the future, and other key sources of estimation at the
reporting date, that could have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year.
Impairment of goodwill
Following recognition of goodwill as a result of acquisitions, the Group determines, as a minimum on an annual
basis and including current year acquisitions, whether goodwill is impaired, which requires an estimation of the
future cash flows of the cash generating units to which the goodwill is allocated, as well as assumptions on
growth rates and discount rates – see note 9. There is no significant risk of material impairment within the
next financial year.
Employee post-retirement benefit obligations
For material defined benefit plans, the actuarial valuation includes assumptions such as discount rates,
return on assets, salary progression and mortality rates. Further details and sensitivity analysis are included
in note 16.
There are no critical accounting judgements.
Other accounting policies
Accounting policies relating to a specific note in the financial statements are set out within that note
as follows:
Revenue
Separately Disclosed Items
Taxation
Property, plant and equipment
Goodwill and other intangible assets
Trade and other receivables
Trade and other payables
Provisions
Borrowings and financial instruments
Capital and reserves
Employee benefits
Share schemes
Non-controlling interest
Note
2
3
6
8
9
11
12
13
14
15
16
17
20
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 2 Operating segments and presentation of results
Accounting policy
Revenue
Revenue represents the total amount receivable for services rendered when there is transfer of control to
the customer, excluding sales-related taxes and intra-group transactions.
Since we unveiled our AAA differentiated growth strategy to capitalise on the best in class operating platform
we have built and target the areas where we have opportunities to get better, the reporting and performance
management used by the CEO to make operating decisions has changed from the previous three segments to
the Group’s new five reportable segments set out below. The segment information for earlier periods has been
re-presented to conform to these changes. The business lines within the new segments demonstrate similar
mid- to long-term structural growth drivers.
Revenue from services rendered on short-term projects is generally recognised in the income statement when
the relevant service is completed, usually when the report of findings or test/inspection certificate is issued.
Short-term projects are considered to be those of less than two months’ duration.
In line with IFRS 15, rebates and customer discounts are considered to be variable consideration and have
been deducted from recognised revenue.
Revenue is recognised using the five steps for revenue recognition. The majority of contracts are for
less than one year. The Group records transactions as revenue on the basis of value of work done, with the
corresponding amount being included in trade receivables if the customer has been invoiced, or in contract
assets, if billing has yet to be completed. Performance obligations vary across business lines and regions, and
on a contract-by-contract basis. There may be more than one performance obligation per contract, for example
Alchemy Training Solutions contracts have multiple elements which are split between recognising revenue at
a point in time for services such as right-of-use software licences, and over time for other services delivered
under the same contract.
When aggregating operating segments into the five reportable segments we have applied judgement over the
similarities of the services provided, the wider economic impacts of the markets served within the segments,
the customer base and the mid- to long-term structural growth drivers. Certain business lines within those
former segments have also been reallocated to better align with the structural growth drivers of each segment.
The costs of the corporate head office and other costs which are not controlled by the five segments are
allocated appropriately.
Inter-segment pricing is determined on an arm’s length basis. There is no significant seasonality in the Group’s
operations. Segment results include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis.
The performance of the segments is assessed based on adjusted operating profit which is stated before
Separately Disclosed Items. The operating segment revenue disclosures provided under IFRS 8 are consistent
with the disaggregated revenue disclosure and recognition and measurement requirements of IFRS 15.
Long-term projects consist of two main types:
• time incurred, which is billed at agreed rates on a periodic basis, such as monthly; or
• staged payment invoicing, requiring an assessment of percentage of completion, based on services provided
and revenue accrued accordingly.
A reconciliation to operating profit by segment and Group profit for the year is included overleaf.
The principal activities of the reportable segments, and the customers they serve, are as follows:
Expenses are recharged to clients where permitted by the contract. Payments received in advance from customers
are recognised in contract liabilities to the extent that performance obligations have not been satisfied.
Consumer products – Our Consumer Products segment focuses on the ATIC solutions we offer to our clients
to develop and sell better, safer, and more sustainable products to their own clients. This segment includes the
following business lines: Softlines, Hardlines, Electrical/Connected World and Government and Trade Services.
The Group does not expect to have any material contracts where the period between the transfer of promised
goods or services to the customer and payment by the customer exceeds one year. As a consequence, the
Group does not adjust any of the transaction prices for the time value of money.
The Group has applied practical expedients in: i) recognising assets from the costs incurred to obtain or fulfil
a contract; and ii) disclosing unsatisfied performance obligations in contracts as contracts have an expected
duration of less than a year. The economic factors affecting revenue for both short- and long-term contracts
are consistent within each.
Operating segments
The Group is organised into business lines, which are the Group’s operating segments and are reported to the
CEO, the chief operating decision maker.
As a trusted partner to the world’s leading retailers, manufacturers and distributors, the segment supports a
wide range of industries including textiles, footwear, toys, hardlines, home appliances, consumer electronics,
information and communication technology, automotive, aerospace, lighting, building products, industrial and
renewable energy products, and healthcare.
Across these industries we provide a wide range of Assurance, Testing, Inspection and Certification (‘ATIC’)
services including laboratory safety, quality and performance testing, and third-party certification. Our
Government and Trade Services business provides inspection services to governments and regulatory bodies
to support trade activities that help the flow of consumer products across borders, predominantly in the Middle
East, Africa and South America.
09
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 2 Operating segments and presentation of results Continued
Corporate Assurance – Our Corporate Assurance segment focuses on the industry-agnostic assurance
solutions we offer to our clients to make their value chains more sustainable and more resilient end-to-end.
This segment includes Business Assurance and Assuris.
Intertek Business Assurance provides a full range of business process audit and support services, including
accredited third-party management systems auditing and certification, second-party supplier auditing and
supply chain solutions, sustainability data verification, process performance analysis and training. Assuris’ global
network of scientists, engineers and regulatory specialists provide clients with support to navigate complex
scientific, regulatory, environmental, health, safety and quality challenges throughout their value chain.
World of Energy – Our World of Energy segment focuses on the ATIC solutions we offer to our clients to
develop better and greener fuels as well as renewables. This segment includes Caleb Brett, Transportation
Technologies (‘TT’) and Clean Energy Associates (‘CEA’).
This segment consists of three global business lines with similar global growth drivers which are intrinsically
linked to the wider economic factors, regulation over traditional hydrocarbons and sustainability of energy supply
which impact the energy market. These business lines provide specialist cargo inspection, analytical assessment,
calibration and related research and technical services to the world’s petroleum and biofuels industries.
Our Caleb Brett business provides cargo and inventory inspection, analytical assessment, calibration and
related research and technical services to the world’s petroleum and biofuels industries.
Health and Safety – Our Health and Safety segment focuses on the ATIC solutions we offer to our clients to
make sure we all enjoy a healthier and safer life. This segment includes AgriWorld, Food and Chemical & Pharma
business lines. The division provides differing services which reflect the breadth of our ATIC offering, but the
services provided are similar in nature and include analytical assessment, inspection and technical services that
are delivered to the customers through issuing certificates or reports.
TTs global network of laboratories provides diverse, rapid testing and validation services to the transportation
market, evaluating to industry standards and international regulations, and delivers testing for new and
emerging markets such as autonomous and connected vehicles, electric/hybrid vehicles, charging components,
automotive telematics and aftermarket components.
Our AgriWorld business provides assurance, testing, inspection and certification services across the entire
agricultural supply chain.
CEA is a provider of quality assurance, supply-chain traceability and technical services to the solar energy,
energy storage and green hydrogen sectors.
Our Food business provides food safety testing, hygiene and safety audits, inspection, certification and
advisory services to food companies.
Our Chemicals & Pharma business enables clients to mitigate risks associated with product quality and safety
and processes, supporting them with their product development, regulatory authorisation, chemical testing
and production.
Industry and Infrastructure – Our Industry and Infrastructure segment focuses on the ATIC solutions our
clients need to develop and build better, safer and greener infrastructure. This segment includes Industry
Services, Minerals and Building & Construction. The nature of the products and services offered across the
segment are similar with services including technical inspections, asset integrity management and sample
testing. These service lines interact through the customer type they service – ATIC services to Industry or
Infrastructure-related products and the inputs into these industries.
Our Industry Services business line uses its in-depth knowledge of industries such as renewable energy, oil
and gas, and petrochemicals to provide customers with a diverse range of Total Quality Assurance solutions.
The services we offer include technical inspection, non-destructive and materials testing and asset
performance management.
Our Minerals business offers expert inspection, analytical testing and advisory services to the minerals,
exploration, ore and mining industries. We cover each step of the supply chain from exploration, production,
sampling and inspection, to commercial trade settlement analysis.
Our Building & Construction business provides testing, inspection, certification and engineering services
to the building and construction industries, offering product-related testing and certification capabilities,
project-related assurance, testing, inspection and consulting services.
10
The results of these segments for the year ended 31 December are shown below:
Year ended 31 December 2023
Consumer Products
Corporate Assurance
Health and Safety
Industry and Infrastructure
World of Energy
Revenue
from
contracts
with
customers
£m
935.8
477.5
326.3
860.5
728.6
(55.4)
(14.0)
(21.7)
(32.3)
(51.9)
Total
3,328.7
(175.3)
Group operating profit
Net financing costs
Profit before income tax
Income tax (expense)/credit
Profit for the year
Depreciation
and software
amortisation
£m
Adjusted
operating
profit
£m
Separately
Disclosed
Items
£m
Operating
profit
£m
246.8
109.4
43.2
86.1
65.6
551.1
551.1
(43.9)
507.2
(124.8)
382.4
(15.1)
(26.2)
(4.9)
(9.5)
(9.2)
(64.9)
(64.9)
(20.0)
(84.9)
20.6
(64.3)
231.7
83.2
38.3
76.6
56.4
486.2
486.2
(63.9)
422.3
(104.2)
318.1
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 2 Operating segments and presentation of results Continued
Year ended 31 December 2022 – (Represented)
Consumer Products
Corporate Assurance
Health and Safety
Industry and Infrastructure
World of Energy
Revenue
from
contracts
with
customers
£m
964.2
450.0
302.3
814.4
662.0
(58.0)
(12.1)
(22.2)
(33.6)
(54.6)
Total
3,192.9
(180.5)
Group operating profit
Net financing costs
Profit before income tax
Income tax (expense)/credit
Profit for the year
Depreciation
and software
amortisation
£m
Adjusted
operating
profit
£m
Separately
Disclosed
Items
£m
Operating
profit
£m
268.5
95.5
40.7
71.9
43.5
520.1
520.1
(31.9)
488.2
(128.4)
359.8
(11.0)
(26.4)
(6.2)
(11.9)
(12.2)
(67.7)
(67.7)
(0.7)
(68.4)
15.4
(53.0)
257.5
69.1
34.5
60.0
31.3
452.4
452.4
(32.6)
419.8
(113.0)
306.8
Geographic segments
Although the Group is managed through a divisional structure, which operates on a global basis, under the
requirements of IFRS 8 the Group must disclose any specific countries that are important to the Group’s
performance. The Group considers the following to be the material countries in which it operates: the United
States, China (including Hong Kong), the United Kingdom and Australia.
In presenting information on the basis of geographic segments, segment revenue is based on the location of
the entity recognising that revenue. Segment assets are based on the geographical location of the assets.
3 Separately Disclosed Items
Accounting policy
Adjusted results
In order to present the performance of the Group in a clear, consistent and comparable format, certain items
are disclosed separately on the face of the income statement. Separately Disclosed Items (‘SDI’) are items
which by their nature or size, in the opinion of the Directors, should be excluded from the adjusted results to
provide readers with a clear and consistent view of the business performance of the Group and its operating
segments on a year-on-year basis. A full glossary and definitions of adjusted performance metrics used by the
Group is included on page 64.
When applicable, these items include amortisation of acquisition intangibles; impairment of goodwill and
other assets; the profit or loss on disposals of businesses or other significant non-current assets; the
costs of acquiring and integrating acquisitions; the cost of any fundamental restructuring; the costs of
any significant strategic projects; material claims and settlements; and unrealised market or fair value gains
or losses on financial assets or liabilities, including contingent consideration.
Adjusted operating profit, which is a non-GAAP measure, excludes the amortisation of acquired intangible
assets, primarily customer relationships, as we do not believe that the amortisation charge in the income
statement provides useful information about the cash costs of running our business as these assets will be
supported and maintained by ongoing marketing and promotional expenditure, which is already reflected
in operating costs. Amortisation of software, however, is included in adjusted operating profit as it is similar
in nature to other capital expenditure.
The costs associated with our cost reduction programme are excluded from adjusted operating profit where
they represent changes associated with operational streamlining and technology upgrades and are costs
that are not expected to reoccur. The restructuring programme, which began in 2022, is expected to last
up to five years.
The treatment as SDI is consistent with the disclosure of costs for similar restructuring and strategic
programmes previously undertaken.
United States
China (including Hong Kong)
United Kingdom
Australia
Other countries and unallocated
Total
Revenue from external
customers
Non-current assets
2023
£m
1,022.5
592.1
217.0
176.1
1,321.0
2022
£m
958.3
591.3
203.5
174.9
1,264.9
2023
£m
1,083.3
83.9
247.4
528.9
442.8
2022
£m
1,139.4
97.3
264.2
555.9
418.9
3,328.7
3,192.9
2,386.3
2,475.7
The impairment of goodwill and other assets that by their nature or size are not expected to recur; the profit
and loss on disposals of businesses or other significant assets; and the costs associated with successful,
active or aborted acquisitions are excluded from adjusted operating profit to provide useful information
regarding the year-on-year performance of the Group’s operations.
As adjusted results include the benefits of the items detailed above, but exclude significant costs related to
those items, they should not be regarded as a complete picture of the Group’s financial performance, which is
presented on the face of the income statement under total results. The exclusion of these items may result
in adjusted operating profit being materially higher or lower than total operating profit. In particular, where
significant impairments, restructuring charges and legal costs are excluded in any year, adjusted operating
profit will be higher than total operating profit.
Major customers
No revenue from any individual customer exceeded 10% of total Group revenue in 2023 or 2022.
11
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 3 Separately Disclosed Items Continued
Separately Disclosed Items
The Separately Disclosed Items are described in the table below:
Operating costs:
Amortisation of acquisition intangibles
Acquisition and integration costs
Restructuring costs
Total operating costs
Net financing costs
Total before income tax
Income tax credit on Separately Disclosed Items
Total
2023
£m
2022
£m
(a)
(b)
(c)
(d)
(e)
(34.2)
(8.3)
(22.4)
(64.9)
(20.0)
(84.9)
20.6
(64.3)
(34.8)
(5.5)
( 27.4)
(67.7 )
(0.7)
(68.4)
15.4
(53.0)
(a) Of the amortisation of acquisition intangibles in the current period, £0.4m relates to the customer relationships acquired with the purchase
of Controle Analítico Análises Técnicas Ltda (‘Controle Analítico’) and £0.3m relates to the customer relationships, trade names and
technology acquired with the purchase of PlayerLync Holdings, Inc. (‘PlayerLync’) in 2023.
(b) Acquisition and integration costs comprise £4.7m (2022: £1.8m) for transaction and integration costs in respect of successful, active and
aborted acquisitions in the current year, and £3.6m in respect of prior years’ acquisitions (2022: £3.7m).
(c) During 2022, the Group initiated the first year of a cost reduction programme. In 2023, costs of £22.4m (2022: £27.4m) included
consolidating sites and offices, streamlining headcount and related asset write-offs.
(d) Net financing costs of £20.0m (2022: £0.7m) relate to the unwinding of discount and changes in fair value of contingent consideration
related to acquisitions. The increase in fair value of contingent consideration predominantly relates to the CEA acquisition made in 2022,
with strong EBITDA performance during the year driving an increase in the expected amount payable in 2024.
Income tax credit on SDIs totalled £20.6m (2022: £15.4m) mainly relating to deferred tax impact of the movement in amortisation
of intangibles.
(e)
4 Expenses and auditors’ remuneration
An analysis of operating costs by nature is outlined below:
Employee costs
Depreciation and software amortisation (notes 8 and 9)
Other expenses
Total
2023
£m
1,450.2
175.3
1,217.0
2022
£m
1,394.7
180.5
1,165.3
2,842.5
2,740.5
Certain expenses / (gains) are outlined in the table below, including fees paid to the auditors of the Group.
Mazars acts as external auditors of certain material and non-material entities within the Group. The total
remuneration for the audit of these entities, included in the table below, was £0.6m (2022: nil).
Included in profit for the year are the following expenses / (gains):
Property rentals
Lease and hire charges – fixtures, fittings and equipment
Government grants related to employee costs
Profit on disposal of property, plant, equipment and software
Auditors’ remuneration:
Audit of these financial statements
Amounts receivable by the auditors and their associates in respect of:
Audit of financial statements of subsidiaries pursuant to legislation
Total audit fees payable pursuant to legislation
Audit-related services
Total
5 Employees
Total employee costs are shown below:
Employee costs
Wages and salaries
Equity-settled transactions
Social security costs
Pension costs (note 16)
Total employee costs
2023
£m
6.8
14.5
(3.6)
(3.2)
1.6
4.2
5.8
0.2
6.0
2022
£m
7.3
12.4
(9.7)
(0.4)
1.2
4.7
5.9
0.2
6.1
2023
£m
1,228.5
21.2
139.5
61.0
2022
£m
1,182.8
17.5
132.9
61.5
1,450.2
1,394.7
Details of pension arrangements and equity-settled transactions are set out in notes 16 and 17 respectively.
Average number of employees by division
Consumer Products
Corporate Assurance
Health and Safety
Industry and Infrastructure
World of Energy
Central
Total average number for the year ended 31 December
Total actual number at 31 December
Represented
2022
2023
13,936
3,946
5,227
9,966
8,530
2,033
43,638
43,908
14,391
3,797
5,205
9,999
8,373
2,020
43,785
43,597
12
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued Deferred tax assets are recognised to the extent that there are taxable temporary differences relating to
the same taxation authority, the same taxable company or different taxable companies part of the same
tax group, which are expected to reverse in the same period, or to the extent that it is probable that future
taxable profits will be available against which the temporary difference can be utilised. The carrying amount
of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be
utilised. In calculating future taxable profits, the future forecasts considered were consistent with those
used for the purposes of the Group’s going concern and viability assessments.
The Group does not currently expect the climate-related risks discussed in Book one, pages 58 to 66 to
have an impact on the availability to recover the deferred tax assets identified below. Any additional income
taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the
related dividend.
Tax expense
The Group operates across many different tax jurisdictions. Income and profits are earned and taxed in the
individual countries in which they occur.
The statutory tax charge, including the impact of SDIs, of £104.2m (2022: £113.0m), equates to an effective
rate of 24.7% (2022: 26.9%) and the cash tax on adjusted results is 23.5% (2022: 21.9%). The income tax
expense for the adjusted profit before tax for the 12 months ended 31 December 2023 is £124.8m (2022:
£128.4m). The Group’s adjusted effective tax rate for the 12 months ended 31 December 2023 is 24.6%
(2022: 26.3%).
Differences between the consolidated effective tax rate of 24.7% and the weighted average notional
statutory UK rate of 23.5% include but are not limited to: the mix of profits; the effect of tax rates in
foreign jurisdictions; non-deductible expenses; the effect of movement in unrecognised deferred tax assets;
movements in the provision for uncertain tax positions; withholding tax on intra-group dividends; tax-exempt
income; and under/over provisions in previous periods.
The Group receives tax incentives in certain jurisdictions, resulting in a lower tax charge to the income
statement. These tax incentives mainly relate to China’s High and New Technology Enterprise and Technology
Advanced Service Enterprise incentives. Without these incentives the adjusted effective tax rate would be
26.9% (2022: 28.3%). The tax on SDIs primarily relates to intangibles, impairment of fixed assets, restructuring,
integration and contingent consideration.
5 Employees Continued
The total remuneration of the Directors is shown below:
Directors’ emoluments
Directors’ remuneration
Amounts charged under the long-term incentive scheme
Total Directors’ emoluments
2023
£m
4.9
2.9
7.8
2022
£m
3.5
1.2
4.7
6 Taxation
Accounting policy
Income tax for the year comprises current and deferred tax. Income tax is recognised in the same primary
statement as the accounting transaction to which it relates.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Tax provisions are recognised for uncertain tax positions where a risk of an additional tax liability has
been identified and it is probable that the Group will be required to settle that tax liability. Measurement is
dependent on management’s expectation of the outcome of decisions by tax authorities in the various tax
jurisdictions in which the Group operates. This is assessed on a case-by-case basis using in-house tax experts,
professional firms and previous experience. Where the outcome of discussions with tax authorities is different
from the amount initially recorded, this difference will impact the tax expense in the period in which the
determination is made.
Deferred tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amount of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes, except for:
• recognition of consolidated goodwill;
• the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit; and
• differences relating to investments in subsidiaries, branches, associates and interest in joint ventures,
the reversal of which is under the control of the Group and where it is probable that the difference will
not reverse in the foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates that have been enacted or substantively enacted at
the balance sheet date, for the periods when the asset is realised or the liability is settled. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable
entities which intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realised simultaneously.
13
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 6 Taxation Continued
Tax charge
The total income tax charge, comprising the current tax charge and the movement in deferred tax, recognised
in the income statement is analysed as follows:
The main rate of UK corporation tax from 1 April 2023 is 25.0%. As the rate of UK corporation tax until
31 March 2023 was 19.0%, the weighted average UK corporation tax rate applicable for the year ended
31 December 2023 is 23.5%. Deferred tax on UK temporary differences at 31 December 2023 has been
provided at 25%.
Current tax charge for the period
Adjustments relating to prior year liabilities
Current tax
Deferred tax movement related to current year
Deferred tax movement related to prior year
Deferred tax movement
Total tax in income statement
Tax on adjusted result
Tax on Separately Disclosed Items
Total tax in income statement
2023
£m
116.7
(0.7)
116.0
(11.6)
(0.2)
(11.8)
104.2
124.8
(20.6)
104.2
2022
£m
114.4
(3.7)
110.7
0.8
1.5
2.3
113.0
128.4
(15.4)
113.0
Reconciliation of effective tax rate
The following table provides a reconciliation of the UK statutory corporation tax rate to the effective tax rate
of the Group on profit before taxation.
2023
£m
2022
£m
Foreign exchange
translation differences
of foreign operations
Net exchange gain/(loss) on
hedges of net investments
in foreign operations
(Loss)/Gain on fair value of
Profit before taxation
422.3
419.8
cash flow hedges
Notional tax charge at UK standard rate 23.5% (2022: 19.0%)
Differences in overseas tax rates
Withholding tax on intercompany dividends
Non-deductible expenses
Tax exempt income
Change in tax rate impact
Movement in unrecognised deferred tax
Adjustments in respect of prior years1
Other2
99.3
(1.0)
6.9
13.4
(7.4)
(0.9)
(0.4)
(0.9)
(4.8)
79.8
7.6
8.5
20.7
(5.1)
(1.6)
3.0
(2.2)
2.3
Remeasurements on defined
benefit pension schemes
Tax on other items that will
never be reclassified to
profit or loss
Total other
comprehensive
(expense)/income
for the year
Total tax in income statement
104.2
113.0
1. Adjustments in respect of prior years mainly relate to current and deferred tax adjustments for the UK, the US, Australia and China.
2. The Other category contains R&D tax incentives and super deductions of £4.0m (2022: £2.6m), a net £3.3m credit on provisions
(2022: £2.7m charge) following a review of uncertain tax positions across multiple territories, and other local taxes.
14
On 20 June 2023, Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum
effective tax rate of 15%. The legislation implements a domestic top-up tax and a multinational top-up tax and
will apply to Intertek from the financial year ending 31 December 2024 onwards. Based on initial analysis using
prior year financial data, most territories in which the Group operates are expected to qualify for one of the
safe harbour exemptions and where this is not the case, the incremental tax arising under Pillar Two is not
expected to be material. The Group is monitoring the status of implementation of the OECD Pillar Two Model
Rules outside of the UK. Intertek has applied the exception under IAS 12 to recognising and disclosing
information about deferred tax assets and liabilities related to top-up income taxes.
Income tax recognised in other comprehensive income (‘OCI’)
As noted in the accounting policy, tax is recognised in the same place as the relevant accounting charge.
The income tax recognised on items recorded in other comprehensive income is shown below:
Before tax
2023
£m
Tax charge
2023
£m
Net of tax
2023
£m
Before tax
2022
£m
Tax charge
2022
£m
Net of tax
2022
£m
(147.1)
4.9
(142.2)
181.5
(4.9)
176.6
58.8
(2.0)
56.8
(120.0)
–
(120.0)
(0.1)
(2.6)
–
0.1
(0.1)
–
4.1
4.1
(2.5)
17.4
(3.5)
13.9
–
–
–
–
–
–
(91.0)
3.0
(88.0)
78.9
(4.3)
74.6
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued Movements in deferred tax temporary differences during the year
The movement in the year in deferred tax assets and liabilities is shown below:
1 January
2023
£m
Exchange
adjustments
£m
Acquisitions
£m
Recognised
in income
statement
£m
Recognised
in equity
and OCI
£m
31 December
2023
£m
Intangible assets
Property, fixtures, fittings
and equipment
Pensions
Equity-settled transactions
Provisions and other
temporary differences
Tax value of losses
Total
(93.8)
(13.1)
(4.1)
5.3
37.8
13.7
(54.2)
3.8
0.8
–
–
(1.7)
(0.7)
2.2
(4.9)
11.7
(0.5)
–
–
(0.4)
–
(5.8)
(1.0)
(0.1)
0.4
4.5
(3.7)
11.8
3.0
0.3
0.1
0.1
2.6
1.0
7.1
(80.2)
(13.5)
(4.1)
5.8
42.8
10.3
(38.9)
Intangible assets
Property, fixtures, fittings
and equipment
Pensions
Equity-settled transactions
Provisions and other
temporary differences
Tax value of losses
1 January
2022
£m
Exchange
adjustments
£m
Acquisitions
£m
Recognised
in income
statement
£m
Recognised
in equity
and OCI
£m
31 December
2022
£m
(90.6)
(12.2)
(8.0)
17.0
–
(93.8)
3.2
(0.2)
7.7
40.9
10.9
0.1
–
–
0.8
0.6
–
–
–
(3.1)
2.8
(8.3)
(16.4)
(0.4)
(1.1)
(0.8)
(0.6)
(2.3)
–
(3.5)
(1.3)
–
–
(13.1)
(4.1)
5.3
37.8
13.7
(4.8)
(54.2)
Total
(28.1)
(10.7)
6 Taxation Continued
Income tax recognised directly in equity
As noted in the accounting policy, tax is recognised in the same place as the relevant accounting charge.
The income tax on items recognised in equity is shown below:
Before tax
2023
£m
Tax charge
2023
£m
Net of tax
2023
£m
Before tax
2022
£m
Tax charge
2022
£m
Net of tax
2022
£m
Equity-settled
transactions
21.2
0.1
21.3
17.5
(1.3)
16.2
Deferred tax
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Intangible assets
Property, plant
and equipment
Pensions
Equity-settled transactions
Provisions and other
temporary differences
Tax value of losses
Total
As shown on balance sheet:
Deferred tax assets*
Deferred tax liabilities*
Total
Assets
2023
£m
1.0
71.5
1.0
5.8
56.5
10.3
146.1
Assets
2022
£m
Liabilities
2023
£m
Liabilities
2022
£m
Net
2023
£m
Net
2022
£m
0.2
4.2
0.7
5.3
60.7
13.7
84.8
(81.2)
(94.0)
(80.2)
(93.8)
(85.0)
(5.1)
–
(13.7)
–
( 17.3)
(4.8)
–
(22.9)
–
(13.5)
(4.1)
5.8
42.8
10.3
(13.1)
(4.1)
5.3
37.8
13.7
(185.0)
(139.0)
(38.9)
(54.2)
36.4
(75.3)
(38.9)
45.0
(99.2)
(54.2)
*
The deferred tax by category shown above is not netted off within companies or jurisdictions. The balance sheet shows the net position
within companies or jurisdictions. The difference between the two asset and liability totals is £109.7m, but the net liability of £38.9m is the
same in both cases. Included within Property, fixtures, fittings and equipment is a deferred tax asset of £68.6m and a deferred tax liability
of £63.6m in respect of leasing transactions. Deferred tax assets and deferred tax liabilities are shown separately following the adoption
of Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12). The equivalent split of the net
deferred asset of £5.3m as at 31 December 2022 is a deferred tax asset of £70.8m in respect of lease liabilities and a deferred tax liability
of £65.5m in respect of right-of-use assets. Deferred tax assets totalling £9.3m have been recognised primarily in respect of Brazil and
Canada that have taxable losses either in the current or prior period. In evaluating whether it is probable that taxable profits will be earned in
future accounting periods, all available evidence was considered, including approved budgets and forecasts. Following this evaluation, it is
considered more likely than not that there will be sufficient future taxable profits to realise these deferred tax assets, the majority of which
can be carried forward indefinitely excluding £0.9m losses which are due to expire within five years and £0.5m losses which are due to expire
after five years. Of the £146.1m of deferred tax assets displayed above, £14.6m are expected to be recovered within 12 months of the date
of this Annual Report and Accounts.
15
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued 6 Taxation Continued
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the items shown below. The numbers shown are
the gross temporary differences, and to calculate the potential deferred tax asset it is necessary to multiply
these by the tax rates in each case:
Intangibles
Pensions
Provisions and other temporary differences
Tax losses
Foreign tax credits1
Property, fixtures, fittings and equipment
Total
Expiry of unrecognised deferred tax assets – tax losses and tax credits
Tax losses expiring:
Within 10 years
More than 10 years
Available indefinitely
Total
Tax credits expiring:
Within 10 years
More than 10 years
Available indefinitely
2023
£m
33.9
1.5
3.6
165.4
9.9
(0.1)
2022
£m
32.3
1.5
1.0
176.0
13.5
–
214.2
224.3
Total
2023
£m
37.6
76.5
51.3
2022
£m
51.2
73.0
51.8
165.4
176.0
9.9
–
–
9.9
13.5
–
–
13.5
In addition to the above, no specified time expiry is anticipated in respect of the other unrecognised deferred
tax assets.
1. The total unrecognised foreign tax credits is £2.7m, the grossed-up equivalent amount of which is £9.9m as stated above.
Deferred tax assets have not been recognised in respect of these items because it is not probable that
future taxable profits will be available in certain jurisdictions against which the Group can utilise the
benefits from them.
Of the unrecognised tax losses above, £103.9m (2022: £110.8m) of these relate to US state tax losses
due to insufficient taxable profits expected in the relevant states. In addition, £9.2m (2022: £8.2m) of these
unrecognised losses relate to a dormant company resident in Hong Kong with no probable future profits.
A further £13.8m (2022: £14.8m) of these unrecognised losses relate to entities based in the UK, however
these mainly relate to (i) non-trade deficits in entities where there is no probable prospect of future non-trade
profits and (ii) capital losses where there is uncertainty on their utilisation in future periods.
There is a temporary difference of £332.5m (2022: £285.1m) which relates to unremitted post-acquisition
overseas earnings. No deferred tax is provided on this amount as the distribution of these retained earnings
is under the control of the Group and there is no intention to either repatriate from, or sell, the associated
subsidiaries in the foreseeable future.
16
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued
7 Earnings per ordinary share
The calculation of earnings per ordinary share is based on profit attributable to ordinary shareholders of the
Company and the weighted average number of ordinary shares in issue during the year. Diluted earnings per
share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of
conversion of all potentially dilutive ordinary shares. Potential ordinary shares shall be treated as dilutive when,
and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per
share from continuing operations.
In addition to the earnings per share required by IAS 33 Earnings Per Share, an adjusted earnings per share has
also been calculated and is based on earnings excluding the effect of amortisation of acquisition intangibles,
goodwill impairment and other Separately Disclosed Items. It has been calculated to allow shareholders a
better understanding of the trading performance of the Group. Details of the adjusted earnings per share
are set out below:
2023
£m
297.4
64.3
361.7
161.3
0.9
162.2
184.4p
(1.0)p
2022
£m
288.8
53.0
341.8
161.2
0.7
161.9
179.2p
(0.8)p
183.4p
178.4p
224.2p
(1.2)p
212.0p
(0.9)p
223.0p
211.1p
Profit attributable to ordinary shareholders
Separately Disclosed Items after tax (note 3)
Adjusted earnings
Number of shares (millions)
Basic weighted average number of ordinary shares
Potentially dilutive share awards
Diluted weighted average number of shares
Basic earnings per share
Impact of potentially dilutive share awards
Diluted earnings per share
Adjusted basic earnings per share
Impact of potentially dilutive share awards
Adjusted diluted earnings per share
17
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic ReportNotes to the financial statements Continued Property, plant and equipment
The property, plant and equipment employed by the business is analysed below:
Cost
At 1 January 2022
Exchange adjustments
Additions
Disposals
Businesses acquired (note 10)
At 31 December 2022
Accumulated depreciation
At 1 January 2022
Exchange adjustments
Charge for the year
Impairments
Disposals
At 31 December 2022
Net book value at 31 December 2022
Fixtures,
fittings,
plant and
equipment
£m
Land and
buildings
£m
577.2
38.0
87.5
(57.4)
–
1,175.0
67.9
110.4
(54.2)
0.1
Total
£m
1,752.2
105.9
197.9
(111.6)
0.1
645.3
1,299.2
1,944.5
276.9
20.2
66.4
–
(47.7)
315.8
329.5
833.5
56.7
93.8
2.4
(52.1)
934.3
364.9
1,110.4
76.9
160.2
2.4
(99.8)
1,250.1
694.4
8 Property, plant and equipment
Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
Leased assets
All leases where the Group is the lessee (with the exception of short-term and low-value leases) are recognised
in the statement of financial position. A lease liability is recognised based on the present value of the future
lease payments, and a corresponding right-of-use asset is recognised. The right-of-use asset is depreciated
over the shorter of the lease term or the useful life of the asset. Lease payments are apportioned between
finance charges and a reduction of the lease liability.
Low-value items, usually below £4,000, and short-term leases with a term of 12 months or less are not
required to be recognised on the balance sheet and payments made in relation to these leases are recognised
on a straight-line basis in the income statement. The Group leases various properties, principally offices and
testing laboratories, which have varying terms and renewal rights that are typical to the territory in which they
are located. Non-property includes all other leases, such as cars and printers. Normally the lease term is the
contractual start to end date, except when a break or extension option is reasonably certain to be taken, which
is considered on a lease-by-lease basis.
Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of
items of property, plant and equipment. Leased assets are depreciated over the shorter of the expected lease
term and their useful lives. Freehold land is not depreciated.
The estimated useful lives are as follows:
Freehold buildings
Leasehold buildings
Fixtures, fittings, plant and equipment
50 years
Term of lease
3 to 10 years
Depreciation methods, residual values and the useful lives of assets are reassessed at each reporting date.
Impairment
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets,
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated to determine the level of any impairment.
18
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report As a result of the Group’s cost reduction programme initiated in 2022, there were individual fixtures, fittings,
plant and equipment assets no longer in use which resulted in an impairment of £2.6m (2022: £2.4m), with the
cost recognised in SDI as a restructuring cost (see note 3).
The net book value of the right-of-use asset for leases comprised:
At 1 January 2022
Cost movement in year
Depreciation movement in year
Net book value at 31 December 2022
At 1 January 2023
Cost movement in year
Depreciation movement in year
Net book value at 31 December 2023
Land and
buildings
£m
240.3
63.1
(33.9)
269.5
Land and
buildings
£m
269.5
(0.1)
(18.1)
251.3
Other
£m
26.5
4.9
(3.3)
28.1
Other
£m
28.1
4.7
2.5
35.3
Total
£m
266.8
68.0
( 37.2)
297.6
Total
£m
297.6
4.6
(15.6)
286.6
For lease liabilities, interest expenses on lease liabilities and cash outflows for leases, refer to note 14;
for expense relating to short-term leases and leases of low-value assets, refer to note 4.
Other leases include motor vehicles, office equipment and fixtures and fittings.
8 Property, plant and equipment Continued
Cost
At 1 January 2023
Exchange adjustments
Additions
Disposals
Businesses acquired (note 10)
At 31 December 2023
Accumulated depreciation
At 1 January 2023
Exchange adjustments
Charge for the year
Impairments
Disposals
At 31 December 2023
Net book value at 31 December 2023
Fixtures,
fittings,
plant and
equipment
£m
Land and
buildings
£m
Total
£m
645.3
(29.0)
65.4
(48.1)
0.8
1,299.2
(78.3)
116.1
(64.1)
1.4
1,944.5
(107.3)
181.5
(112.2)
2.2
634.4
1,274.3
1,908.7
315.8
(15.0)
65.6
–
(34.6)
331.8
302.6
934.3
(59.5)
90.4
2.6
(60.5)
1,250.1
(74.5)
156.0
2.6
(95.1)
907.3
1,239.1
367.0
669.6
Fixtures, fittings, plant and equipment include assets in the course of construction of £41.7m at 31 December
2023 (2022: £33.6m), mainly comprising laboratories under construction. These assets will not be depreciated
until they are available for use.
The net book value of land and buildings comprised:
Freehold
Leasehold
Total
2023
£m
47.7
254.9
302.6
2022
£m
56.6
272.9
329.5
Contracts for capital expenditure which are not provided in the financial statements amounted to £7.2m
( 2022: £7.4 m).
We have specifically reviewed our portfolio of freehold properties (total 2023 net book value of £47.7m
(2022: £56.6m)) to consider whether there are indications of material impairment arising from the potential
physical risks arising from climate change. We have not impaired any assets this year as a result of this exercise.
19
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report Impairment
Goodwill is not subject to amortisation and is tested annually for impairment and when circumstances indicate
that the carrying value may be impaired. Goodwill is also tested for impairment in the year of any acquisition.
Other intangible assets are subject to amortisation and are reviewed for impairment whenever events or
changes in circumstances indicate that the amount carried in the statement of financial position may be less
than its recoverable amount.
Any impairment is recognised in the income statement within operating costs. Impairment is determined
for goodwill by assessing the recoverable amount of each asset or group of assets, i.e. CGU, to which the
goodwill relates. A CGU represents an asset grouping at the lowest level for which there are separately
identifiable cash flows.
The recoverable amount of an asset or a CGU is the greater of its fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. The estimation process is complex due to the inherent risks and uncertainties and if different estimates
were used this could materially change the projected value of the cash flows. An impairment loss in respect of
goodwill is not reversed.
9 Goodwill and other intangible assets
Accounting policy
Goodwill
Goodwill arises on the acquisition of businesses. Goodwill represents the difference between the cost
of acquisition and the Group’s interest in the fair value of the identifiable assets and liabilities acquired.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating
units (‘CGUs’) and is not amortised but is tested annually for impairment.
Business combinations are accounted for using the acquisition method at the acquisition date, which is the
date on which control is obtained.
The Group measures goodwill as the fair value of the consideration transferred less the net recognised
amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of
the acquisition date.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities,
are expensed as incurred. Costs relating to acquisitions are shown in note 3.
Any contingent consideration payable is recognised at fair value at the acquisition date with subsequent
changes recognised in profit or loss.
If at the reporting date the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities
can only be established provisionally, then these values are used. Adjustments to the fair values can be made
within 12 months of the acquisition date and are taken as adjustments to goodwill.
Other intangible assets
When the Group makes an acquisition, management reviews the business and assets acquired to determine
whether any intangible assets should be recognised separately from goodwill. If, based on management’s
judgement, such an asset is identified, then it is valued by discounting the probable future cash flows expected
to be generated by the asset, over the estimated life of the asset. Where there is uncertainty over the amount
of economic benefit and the useful life, this is factored into the calculation.
Intangible assets arising on acquisitions and computer software are stated at cost less accumulated
amortisation and accumulated impairment losses. Identifiable intangibles are those which can be sold
separately or which arise from legal rights regardless of whether those rights are separable, and which
have finite useful lives.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives.
The estimated useful lives are as follows:
Computer software
Customer relationships
Technology and know-how
Trade names
Licences
Covenants not to compete
Up to 7 years
Up to 20 years
Up to 15 years
Up to 18 years
Contractual life
Contractual life
20
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report
9 Goodwill and other intangible assets Continued
Intangibles
The intangibles employed by the business are analysed below:
Other intangible assets
Goodwill
£m
Customer
relationships
£m
Technology/
Know-how
and trade
names
£m
Other
acquisition
intangibles
£m
Computer
software
£m
Total other
intangible
assets
£m
Cost
At 1 January 2022
Exchange adjustments
Additions
Transfers
Disposal
Businesses acquired (note 10)
At 31 December 2022
Accumulated amortisation
At 1 January 2022
Exchange adjustments
Charge for the year
Disposal
Impairment
At 31 December 2022
Net book value at
1,763.9
139.2
–
5.8
–
66.6
1,975.5
522.5
34.6
–
–
–
557.1
496.3
38.8
–
–
–
12.1
5 47.2
327.7
23.0
22.2
–
–
372.9
97.4
8.7
–
2.9
–
3.2
112.2
25.9
2.7
11.3
–
–
39.9
29.2
2.0
–
–
–
–
31.2
25.9
1.7
1.3
–
–
28.9
245.7
21.7
20.4
–
(5.3)
–
282.5
130.6
10.0
20.3
(5.3)
12.9
168.5
868.6
71.2
20.4
2.9
(5.3)
15.3
973.1
510.1
37.4
55.1
(5.3)
12.9
610.2
31 December 2022
1,418.4
174.3
72.3
2.3
114.0
362.9
Other intangible assets
Goodwill
£m
Customer
relationships
£m
Technology/
Know-how
and trade
names
£m
Other
acquisition
intangibles
£m
Computer
software
£m
Total other
intangible
assets
£m
Cost
At 1 January 2023
Exchange adjustments
Additions
Transfers
Disposal
Businesses acquired (note 10)
1,975.5
(83.1)
–
0.3
–
30.2
At 31 December 2023
1,922.9
Accumulated amortisation
At 1 January 2023
Exchange adjustments
Charge for the year
Disposal
Impairment
At 31 December 2023
Net book value at
557.1
(20.0)
–
–
–
537.1
5 47.2
(21.8)
–
–
–
8.0
533.4
372.9
(13.5)
21.9
–
–
381.3
112.2
(5.5)
–
–
–
8.6
115.3
39.9
(2.2)
11.5
–
–
49.2
31.2
(1.0)
–
–
–
–
30.2
28.9
(0.9)
0.8
–
–
28.8
282.5
(15.2)
23.9
–
(6.5)
–
284.7
168.5
(8.1)
19.3
(6.3)
–
173.4
973.1
(43.5)
23.9
–
(6.5)
16.6
963.6
610.2
(24.7)
53.5
(6.3)
–
632.7
31 December 2023
1,385.8
152.1
66.1
1.4
111.3
330.9
Other intangible assets
Computer software additions of £23.9m (2022: £20.4m) relates to separately acquired computer software
of £9.9m (2022: £6.9m) and internally developed intangible assets of £14.0m (2022: £13.5m).
The other acquisition intangibles net book value of £1.4m (2022: £2.3m) consists of guaranteed income,
order backlog, licences and non-compete covenants.
The average remaining amortisation period for customer relationships is seven years (2022: seven years).
As a result of the Group’s cost reduction programme initiated in 2022, there were two individual technology
assets no longer in use which resulted in an impairment of £12.9m in 2022, with the cost recognised in SDI
as a restructuring cost (see note 3). No impairment related to IT assets was incurred in 2023.
Computer software net book value of £111.3m (2022: £114.0m) includes software in construction of
£41.5m (2022: £42.8m). Research and development expenditure of £38.7m (2022: £37.6m) was recognised
as an expense in the year.
21
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report Impairment review
In order to determine whether impairments are required, the Group estimates the recoverable amount of
each CGU. The calculation is based on projecting future cash flows over a five-year period and using a terminal
value to incorporate expectations of growth thereafter. The long-term growth rate is used in the perpetuity
calculations. A discount factor is applied to obtain a value in use which is the recoverable amount. Goodwill
arising in year from acquisitions is assessed for impairment separately from the above CGUs and on an
acquisition-by-acquisition basis. There was no impairment of goodwill for Controle Analítico or PlayerLync,
from the date of acquisition to 31 December 2023. There would be no impact on the impairment review
through the inclusion of Controle Analítico and PlayerLync within the CGU review. No impairments were
required on goodwill arising in 2023 (2022: no impairments).
The calculation of the value in use includes assessment of long-term growth rates and discount rates.
Long-term growth rates predict growth beyond the Group’s planning cycle, and range from 2.3% to 3.0%
(2022: 1.7% to 2.6%). The discount rate for each CGU is based on the Group’s weighted average cost of
capital adjusted for the risks specific to the CGU. Pre-tax discount rates ranged from 11.4% to 13.4%
(2022: 9.0% to 10.2%). The underlying cash flows include consideration of the potential impact of inflation.
Key assumptions
The key assumptions include the rate of revenue and profit growth within each of the territories and business
lines in which the Group operates. These are based on the Group’s approved budget and five-year strategic
plan. Finally, the discount rate used to bring the cash flow back to a present value varies depending on the
location of the operation and the nature of the operations. The estimated future cash flows are discounted to
their present value using a discount rate that reflects current market assessments of the time value of money
and the risks specific to the asset.
Sensitivity analysis
None of the reasonable downside sensitivity scenarios on key assumptions would cause the carrying amount
of each CGU to exceed its recoverable amount. The sensitivities modelled by management include:
(i) Assuming revenues decline each year by 1% in 2024 to 2028 from the 2024 budgeted revenues, with
margins increasing with base assumptions.
(ii) Assuming zero growth in operating profit margins in 2024 to 2028 with revenues increasing per base
assumptions.
(iii) Assuming an increase in the discount rates used by 1%.
1,385.8
1,418.4
Management considers that the likelihood of any or all of the above scenarios occurring is low.
9 Goodwill and other intangible assets Continued
Goodwill
Goodwill arising from acquisitions in the current and prior year has been allocated to reportable segments
as follows:
Consumer Products
Corporate Assurance
Health and Safety
Industry and Infrastructure
World of Energy
At 31 December
2023
£m
–
17.0
13.2
–
–
30.2
Represented
2022
£m
–
–
–
–
66.6
66.6
In performing our annual impairment testing, the recoverable amount of each CGU has been calculated based
on its value in use, estimated as the present value of projected future cash flows. In order to reflect the
changes to the Group’s strategy described in note 2, and consequential changes to the monitoring of goodwill
by management, the number of CGUs to which goodwill is allocated has increased from 13 to 17. This change
had no impact on the carrying value of goodwill.
The goodwill held in the CGUs and aggregated groups of CGUs shown below is considered significant within the
total carrying amount of goodwill at 31 December 2023:
Consumer Products1
Corporate Assurance2
Health and Safety3
Industry and Infrastructure4
World of Energy5
At 31 December6
2023 pre-tax
discount rate
11.9–12.1%
12.0–12.2%
12.1–13.4%
11.4–13.3%
12.0–13.0%
Represented
2022
£m
2023
£m
104.0
705.1
150.2
271.5
155.0
104.9
725.5
137.5
288.4
162.1
1 Within Consumer Products, goodwill allocated to the Electrical and Connected World CGU was £88.5m (2022: £93.4m) and the pre-tax
discount rate was 12.1%.
2 Within Corporate Assurance, goodwill allocated to the Business Assurance CGU was £699.7m (2022: £720.0m), and the pre-tax discount
rate was 12.0%.
3 Within Health and Safety, goodwill allocated to the Food CGU is £40.8m (2022: £40.4m), and goodwill allocated to the Chemical & Pharma
CGU is £76.6m (2022: £78.7m). Pre-tax discount rates were 12.1% and 13.4% respectively.
4 Within Industry and Infrastructure, goodwill allocated to the Minerals CGU is £36.9m (2022: £38.8m) and goodwill allocated to the Building
& Construction CGU is £223.7m (2022: £238.2m). Pre-tax discount rates were 13.3% and 12.1% respectively.
5 Within World of Energy, goodwill allocated to the Caleb Brett CGU is £42.5m (2022: £43.3m), goodwill allocated to the Transportation
Technologies CGU is £44.5m (2022: £46.9m) and goodwill allocated to the CEA CGU is £63.6m (2022: £66.6m), as discussed in note 10.
Pre-tax discount rates were 13.0%, 12.0% and 12.0% respectively.
6 All goodwill is recorded in local currency. Additions during the year are converted at the exchange rate on the date of the transaction and
the goodwill at the end of the year is stated at closing exchange rates.
22
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report
10 Acquisitions
Acquisitions in 2023
On 31 March 2023, the Group acquired Controle Analítico Análises Técnicas Ltda (‘Controle Analítico’), a
leading provider of environmental analysis, with a focus on water testing, based in Brazil, for a purchase
price of £18.8m. Purchase consideration net of cash acquired was £18.3m. The purchase price includes cash
consideration of £15.1m and a further contingent consideration payable of £3.7m. The net cash outflow in
the period associated with this acquisition was £14.6m.
The acquisition of Controle Analítico represents an attractive and complementary opportunity for the Group
to expand its leading Food and Agri Total Quality Assurance solutions in Brazil by expanding our presence and
service offering in the environmental testing market.
On 9 August 2023, the Group acquired PlayerLync Holdings, Inc. (‘PlayerLync’), a leading SaaS-based platform
which combines mobile learning, operational support and compliance, content management and people
engagement in a single application, based in the USA, for a purchase price of £28.5m. Purchase consideration
net of cash acquired was £25.9m. The net cash outflow in the period associated with this acquisition was
£25.9m.
The acquisition creates compelling additional growth opportunities for Intertek to strengthen its existing
People Assurance service offering, further enhancing the Group’s differentiated Total Quality Assurance
proposition and Science-based Customer Excellence advantage.
Provisional details of the net assets acquired and fair value adjustments are set out in the following tables.
These analyses are provisional and amendments may be made to these figures in the 12 months following
the date of acquisition.
2023
Provisional
fair value to
Group on
acquisition
£m
2.2
13.2
5.4
0.6
(0.8)
(2.3)
18.3
Controle Analítico Análises Técnicas Ltda
Total
Property, plant and equipment
Goodwill
Other intangible assets
Trade and other receivables
Trade and other payables
Deferred tax liabilities
Net assets acquired (net of cash acquired)
23
PlayerLync Holdings, Inc
Total
Goodwill
Other intangible assets
Trade and other receivables
Trade and other payables
Deferred tax liabilities
Net assets acquired (net of cash acquired)
2023
Provisional
fair value to
Group on
acquisition
£m
17.0
11.2
3.0
(1.9)
(3.4)
25.9
Goodwill and intangible assets
The total goodwill arising on acquisitions made during 2023 was £30.2m, of which £nil is expected to be
deductible for tax purposes. The goodwill arising represents the value of the assembled workforce and the
benefits the Group expects to gain from increasing its presence in the relevant sectors in which the acquired
businesses operate. The intangible assets of £16.6m primarily represent the value of customer relationships,
trade names and technology. The final values will be calculated within 12 months following the date of
acquisition. The deferred tax thereon was £5.7m.
Consideration paid
The total cash consideration for the acquisitions in the year was £43.6m (2022: £79.3m), with further
contingent consideration payable of £5.5m (2022: £12.9m) that comprises £3.7m purchase consideration and
£1.8m revaluation of contingent consideration recognised during the year, which is disclosed in note 13. Cash
consideration includes cash acquired of £3.1m (2022: £13.4m). The estimated purchase price net of cash was
£40.5m (2022: £65.9m).
Contribution of acquisitions to revenue and profits
In total, acquisitions made during 2023 contributed revenues of £9.1m (2022: £11.9m) and a statutory net
profit after tax of £1.4m (2022: £2.1m) from the date of acquisition to year-end. The Group revenue and
statutory profit after tax for the year ended 31 December 2023 would have been £3,334.5m and £318.6m
respectively if the acquisitions were assumed to have been made on 1 January 2023.
Acquisition-related costs
Acquisition-related costs of £1.3m related to current year acquisitions are included in operating costs in
the consolidated income statement as an SDI (see note 3) and in operating cash flows in the consolidated
statement of cash flows.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 10 Acquisitions Continued
Acquisitions in 2022
On 1 August 2022 the Group acquired Clean Energy Associates, LLC (‘CEA’) a market-leading independent
provider of Total Quality Assurance, supply chain traceability and technical services to the fast-growing solar
energy and energy storage sectors with a headquarters in the USA and an operation based in China, for a
purchase price of US$112.4m (£92.2m). Purchase consideration net of cash acquired was US$96.1m (£78.8m).
The purchase price includes cash consideration of £79.3m and a further contingent consideration payable of
£12.9m. Goodwill of £66.6m was generated in this purchase.
The net assets acquired and fair value adjustments are set out in the following table.
Clean Energy Associates LLC
Total
Property, plant and equipment
Goodwill
Other intangible assets
Trade and other receivables
Trade and other payables
Provisions for liabilities and charges
Deferred tax liabilities
Net assets acquired (net of cash acquired)
2022
Fair value to
Group on
acquisition
£m
0.1
66.6
15.3
5.9
(5.5)
–
(3.6)
78.8
11 Trade and other receivables
Accounting policy
Trade receivables are recognised initially at the value of the invoice sent to the customer and subsequently
at the amounts considered recoverable (amortised cost). Estimates are used in determining the level of
receivables that will not, in the opinion of the Directors, be collected. The Group applies the simplified approach
permitted by IFRS 9, which requires the use of the lifetime expected loss provision for all receivables, including
contract assets. The provision calculations are based on historical credit losses and forward-looking data,
namely specific country risk classifications with higher default rates applied to older balances. This approach
is followed for all receivables unless there are specific circumstances, such as the bankruptcy of a customer
or emerging market risks, which would render the receivable irrecoverable and therefore require a specific
provision. A provision is made against trade receivables and contract assets until such time as the Group
believes the amount to be irrecoverable, after which the trade receivable or contract assets balance is
written off.
Trade and other receivables
Trade and other receivables are analysed below:
Trade receivables
Contract assets
Other receivables
Prepayments
Total trade and other receivables
Current
2023
£m
512.7
107.2
52.0
53.2
725.1
Current
2022
£m
Non-current
2023
£m
Non-current
2022
£m
519.2
100.4
59.4
47.4
726.4
13.9
–
7.9
–
21.8
13.1
–
8.4
–
21.5
The provisional fair values disclosed in 2022 have been updated for CEA, resulting in an increase in goodwill
of £0.3m and movements in trade and other receivables and trade and other payables. These fair value
adjustments were made in the 12 months following the acquisition and are now final.
Trade receivables and contract assets are shown net of allowance for impairment losses of £11.2m (2022:
£13.9m) and £1.6m (2022: £1.7m) respectively. Net impairment on trade receivables and contract assets
charged as part of operating costs was £2.3m (2022: £9.4m credit) and £nil (2022: £0.1m) respectively.
Key assumptions
The key assumptions in deriving the contingent consideration to be recognised include the weighted
probability of making a payout and the discount rate used to bring the cash flow back to present values.
The discount rates used for the calculation are aligned with the discount rates used for impairment purposes
as set out in note 9.
There is no material difference between the above amounts for trade and other receivables and their fair value,
due to their short-term duration. There is no concentration of credit risk with respect to trade receivables as
the Group has a large number of customers who are internationally dispersed. Non-current receivables are
discounted to the present value using an appropriate discount rate.
Sensitivity analysis
It is estimated that an increase of 1% in the discount rate used to calculate the contingent consideration would
have decreased the financial liability by £0.3m, and a 1% decrease in the discount rate would have increased
the financial liability by £0.3m. It has also been estimated that an increase of 10% in the probability used to
calculate the contingent consideration would have increased the financial liability by £3.6m, whilst a decrease
of 10% in the probability used would have decreased the financial liability by £3.6m.
24
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 11 Trade and other receivables Continued
The ageing of trade receivables and contract assets at the reporting date was as follows:
Under 3 months
Between 3 and 6 months
Between 6 and 12 months
Over 12 months
Gross trade receivables and contract assets
Allowance for impairment
Trade receivables and contract assets, net of allowance
2023
£m
528.1
57.3
25.7
35.5
646.6
(12.8)
633.8
2022
£m
514.9
85.4
27.9
20.1
648.3
(15.6)
632.7
Included in trade receivables under three months of £424.8m (2022: £418.4m) are trade receivables of
£374.4m (2022: £365.2m) that are not yet due for payment.
The movement in the allowance for impairment in respect of trade receivables and contract assets during the
year was as follows:
Impairment allowance for doubtful trade receivables and contract assets
At 1 January
Exchange differences
Acquisitions
Net impairment loss recognised
Receivables written off
At 31 December
2023
£m
15.6
(2.3)
0.1
2.3
(2.9)
12.8
2022
£m
15.4
1.9
0.2
9.5
(11.4)
15.6
Sensitivity analysis
Trade receivables and contract assets are assessed for impairment using a calculated credit loss assumption.
A 0.25% variance in the assumed credit risk factor would impact impairment by £2.2m. There were no material
individual impairments of trade receivables or contract assets.
12 Trade and other payables
Accounting policy
Trade payables
Trade payables are recognised at the value of the invoice received from a supplier. The carrying value of trade
payables is considered approximate to fair value.
Trade and other payables
Trade and other payables are analysed below:
Trade payables
Other payables
Accruals
Contract liabilities
Total trade and other payables
Current
2023
£m
204.8
76.8
305.5
148.5
735.6
Current
2022
£m
Non-current
2023
£m
Non-current
2022
£m
172.1
85.9
308.4
156.8
723.2
0.5
19.5
3.7
6.4
30.1
0.7
19.5
7.8
6.6
34.6
The Group’s exposure to liquidity risk related to trade payables is disclosed in note 14. £133.3m of contract
liabilities at the end of 2022 was recognised in revenue in 2023 (2022: £113.3m).
Other payables include revenue taxes, interest payable and retirement liabilities.
Contract liabilities consist of consideration received in advance of the Group transferring the related good
or service to the client.
In one part of the Group an arrangement is available that allows payment terms to suppliers to be extended
by up to 60 days. At 31 December 2023, this arrangement was applicable to trade payables totalling £2.3m
(2022: £1.6m).
25
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report
13 Provisions
Accounting policy
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation
that can be estimated reliably as a result of a past event, and it is probable that an outflow of economic
benefits will be required to settle the obligation.
Provisions
At 1 January 2023
Exchange adjustments
Provided in the year:
in respect of current year acquisitions
in respect of prior year acquisitions
Released during the year
Utilised during the year
At 31 December 2023
Included in:
Current liabilities
Non-current liabilities
At 31 December 2023
Contingent
consideration
£m
Claims
£m
17.2
(1.5)
–
5.5
17.9
(0.8)
(2.7)
35.6
–
35.6
35.6
5.0
(0.2)
5.4
–
–
(0.1)
(4.7)
5.4
5.4
–
5.4
Other
£m
8.2
(0.2)
23.3
–
–
(1.1)
(17.4)
12.8
12.6
0.2
12.8
Total
£m
30.4
(1.9)
28.7
5.5
17.9
(2.0)
(24.8)
53.8
18.0
35.8
53.8
The maximum contingent consideration, on a discounted basis, that could be paid in relation to acquisitions is
£176.2m. Further detail on the timing of the cash flow can be found in note 14. The contingent consideration
is a financial liability discounted to the present value of the redemption amount held at fair value through profit
and loss with the measurement basis disclosed in note 14.
The Group is involved in various claims and lawsuits incidental to the ordinary course of its business. The
outcome of such litigation and the timing of any potential liability cannot be readily foreseen, as it is often
subject to legal proceedings. Based on information currently available, the Directors consider that the cost
to the Group of an unfavourable outcome arising from such litigation is unlikely to have a materially adverse
effect on the financial position of the Group in the foreseeable future.
The provision for claims of £5.4m (2022: £5.0m) represents an estimate of the amounts payable in connection
with identified claims from customers, former employees and other plaintiffs and associated legal costs. The
timing of the cash outflow relating to the provisions is uncertain but is likely to be within one year. Details of
contingent liabilities in respect of claims are set out in note 22.
The other provision of £12.8m (2022: £8.2m) includes restructuring provisions. The timing of the cash outflow
is uncertain, but is likely to be within one year.
26
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments
Accounting policy
Net financing costs
Net financing costs comprise interest expense on borrowings; interest expense on tax balances; facility
fees; interest receivable on funds invested; interest income and expense relating to pension assets and
liabilities and lease interest expense under IFRS 16; net foreign exchange gains or losses on financial assets
or liabilities; unrealised market or fair value gains or losses on financial assets or liabilities, including contingent
consideration; and gains and losses on hedging instruments that are recognised in the income statement.
Interest income and interest expense are recognised as they accrue using the effective interest rate method.
As permitted by IAS 7, interest paid is classified within operating cash flows and interest received is classified
within investing cash flows.
The fair value of cross currency interest rate swaps is estimated using the present value of the estimated
future cash flows based on observable yield curves.
The fair value of foreign currency forwards is estimated using present value of future cash flows based on
the foreign exchange rates at the balance sheet date.
Hedging
Hedge of monetary assets and liabilities
Where a derivative financial instrument is used economically to hedge the foreign exchange exposure
of a recognised monetary asset or liability, no hedge accounting is applied and any gain or loss on the
hedging instrument is recognised in the income statement in the same caption as the foreign exchange
on the related item.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently at amortised cost less
impairment losses (including bad debt provision).
Cash and cash equivalents and net debt
Cash and cash equivalents on the balance sheet comprise cash at bank and in hand and short-term deposits
with original maturities of less than 90 days which are subject to an insignificant risk of changes in value.
Non-current assets include deposits with maturities exceeding 90 days. In the consolidated statement of
cash flows, net cash and cash equivalents comprise cash and cash equivalents, as defined above, net of bank
overdrafts. Net financial debt comprises borrowings less cash and cash equivalents and total net debt is net
financial debt plus the IFRS 16 lease liability.
Non-derivative financial liabilities
Trade and other payables are recognised initially at fair value and subsequently at their amortised cost.
Interest-bearing borrowings are initially recognised at fair value less transaction costs. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and
redemption value being recognised in the income statement over the period of the borrowings on an effective
interest basis.
Put options held by non-controlling interests that arise on acquisition are recognised initially at the present
value of the redemption amount. They are subsequently measured at amortised cost using the effective
interest method. The discount is unwound through SDIs as a finance charge.
Derivative financial instruments
The Group uses derivative financial instruments, including cross currency interest rate swaps and foreign
currency forwards, to hedge economically its exposure to foreign exchange risks. In accordance with its
treasury policy, the Group does not hold or issue derivative financial instruments for speculative purposes.
Derivative financial instruments are recognised initially and subsequently at fair value; attributable
transaction costs are recognised in profit or loss when incurred. The gain or loss on remeasurement to
fair value at each period end is recognised immediately in the income statement except where derivatives
qualify for hedge accounting.
27
Hedge of net investment in foreign operations
The Group is exposed to foreign exchange risk exposure arising from its net investment in foreign currency
operations and net assets. To the extent that the Group has debt, it is held in currencies that hedge the foreign
exchange risks from the Group’s net investments, or cross currency interest rate swaps are used to achieve the
same objective.
The portion of the gain or loss on an instrument designated as a hedge of a net investment in a foreign
operation that is determined to be an effective hedge is recognised directly in equity in the translation reserve.
The value in relation to the hedge instrument that is held within the cumulative foreign currency translation
reserve is recycled through the income statement when the hedged subsidiary is disposed of. If the instrument
is no longer deemed effective, then future movements in fair value are posted to the income statement.
Cash flow hedges
Cash flow hedges comprise derivative financial instruments designated in a hedging relationship to
manage interest rate risk and foreign exchange risk to which the cash flows of certain assets and liabilities
are exposed. The Group is exposed to the variability in cash flows arising from the foreign exchange risk
exposures. In accordance with the Group’s hedging strategy, the Group has cross currency interest rate
swaps designated as cash flow hedges.
The effective portion of changes in the fair value of a derivative that is designated and qualifies for hedge
accounting is recognised in other comprehensive income. The value in relation to the hedge instrument that
is held within the cumulative cash flow hedge reserve (disclosed within other reserves) is recycled through
the income statement when the hedged item impacts the income statement. If the instrument is no longer
deemed effective, then future movements in fair value are posted to the income statement.
Interest Rate Benchmark Reform
LIBOR was discontinued as a published benchmark rate for some currencies as of 1 January 2022. The Group
has reviewed and renegotiated significant borrowing and commercial contracts to replace LIBOR references
with alternative benchmark rates, as needed.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
Impairment
A financial asset is assessed for impairment at each reporting date by application of an expected loss model
in line with IFRS 9 requirements.
Analysis of net debt
Net financing costs
Net financing costs are shown below:
Recognised in income statement
Finance income
Interest on bank balances
Total finance income
Finance expense
Interest on borrowings
Net pension interest income/(cost) (note 16)
Foreign exchange differences on revaluation of net monetary assets and liabilities
Leases – IFRS 16
Facility fees and other*
Total finance expense*
Net financing costs*
*
Includes £20.0m cost (2022: £0.7m cost) relating to SDIs.
2023
£m
3.8
3.8
(33.6)
1.0
(2.5)
(10.8)
(21.8)
(67.7)
(63.9)
2022
£m
2.2
2.2
(29.6)
0.1
8.6
(10.2)
(3.7)
(34.8)
(32.6)
28
Cash and cash equivalents per the statement of financial position
Overdrafts
Cash per the statement of cash flows
The components of net debt are outlined below:
2023
£m
299.3
(0.7)
298.6
2022
£m
321.6
(0.9)
320.7
Cash
320.7
13.7
–
(35.8)
298.6
1 January
2023
£m
Cash flow
£m
Non-cash
movements
£m
Exchange
adjustments
£m
31 December
2023
£m
Borrowings:
Revolving credit facility US$850m 2027
Senior notes US$160m 2023
Acquisition facility ‘A’ AU$88.0m 2023
Acquisition facility ‘A’ US$96.9m 2023
Senior notes US$125m 2024
Senior notes US$120m 2025
Senior notes US$75m 2026
Senior notes US$150m 2027
Senior notes US$165m 2028
Senior notes US$165m 2029
Senior notes US$160m 2030
Senior notes EUR€120m 2026
Senior notes EUR€25m 2027
Senior notes EUR€40m 2028
Other*
Total borrowings
Total net financial debt
Lease liabilities
Total net debt
–
(133.1)
(49.4)
(80.6)
(104.0)
(99.8)
(62.4)
(124.8)
( 137.3)
( 137.3)
(133.1)
–
–
–
3.2
2.2
125.2
44.9
75.1
–
2.2
–
–
–
–
–
(104.1)
(21.7)
(34.7)
–
(1,058.6)
89.1
( 737.9)
102.8
(322.2)
77.8
(1,060.1)
180.6
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1.6)
(1.6)
(1.6)
(78.3)
(79.9)
(2.2)
8.0
4.5
5.5
6.3
3.8
3.8
7.6
8.2
8.3
8.1
–
–
–
–
61.9
26.1
14.9
41.0
–
–
–
–
(97.7)
(93.8)
(58.6)
(117.2)
(129.1)
(129.0)
(125.0)
(104.1)
(21.7)
(34.7)
1.6
(909.2)
(610.6)
(307.8)
(918.4)
*
Includes other uncommitted borrowings of £0.8m (2022: £0.8m) and facility fees of £2.4m (2022: £4.0m).
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
Borrowings
Borrowings are split into current and non-current as outlined below:
Cash
264.0
51.7
–
5.0
320.7
1 January
2022
£m
Cash flow
£m
Non-cash
movements
£m
Exchange
adjustments
£m
31 December
2022
£m
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1.5)
(6.0)
0.8
(1.8)
(2.7)
(14.4)
(2.1)
(8.8)
(11.3)
(10.8)
(6.8)
(15.4)
(13.5)
(13.5)
(13.1)
–
–
–
–
–
(133.1)
(49.4)
(80.6)
(104.0)
(99.8)
(62.4)
(124.8)
( 137.3)
( 137.3)
(133.1)
3.2
Senior term loans and notes
Other borrowings
Total borrowings
Analysis of debt
Debt falling due:
In one year or less
Between one and two years
Between two and five years
Over five years
Total borrowings
Current
2023
£m
97.8
(1.0)
96.8
Current
2022
£m
Non-current
2023
£m
Non-current
2022
£m
263.1
(1.6)
261.5
813.0
(0.6)
812.4
798.7
(1.6)
797.1
2023
£m
2022
£m
96.8
93.2
464.6
254.6
261.5
103.0
286.0
408.1
909.2
1,058.6
Description of borrowings
Total undrawn committed borrowing facilities as at 31 December 2023 were £664.3m (2022: £707.3m).
(1.5)
(1.5)
(92.4)
(93.9)
(119.4)
(1,058.6)
(114.4)
( 737.9)
(18.9)
(322.2)
(133.3)
(1,060.1)
US$850m revolving credit facility
The Group has a US$850m multi-currency revolving credit facility, which is the Group’s principal facility and in
December 2021 was extended from 2026-2027. Advances under the facility bear interest at a rate equal to
a risk-free rate, or their local currency equivalent, plus a margin, depending on the Group’s financial leverage.
Drawings under this facility at 31 December 2023 were £nil (2022: £nil).
US$692m acquisition facility
In May 2021 the Group agreed a US$692m multi-currency acquisition facility to finance the acquisition of
SAI Global with £357.4m repaid in March 2022 and the balance of £130.0m repaid in September 2023.
Advances under the facility bear interest at a rate equal to USD LIBOR or AUD BBSW, plus a margin. Drawings
under this facility at 31 December 2023 were £nil (2022: £130.0m).
Borrowings:
Revolving credit facility US$850m 2027
Senior notes US$140m 2022
Acquisition facility ‘B’ AU$264.1m 2022
Acquisition facility ‘B’ US$290.7m 2022
Senior notes US$160m 2023
Acquisition facility ‘A’ AU$88.0m 2023
Acquisition facility ‘A’ US$96.9m 2023
Senior notes US$125m 2024
Senior notes US$120m 2025
Senior notes US$75m 2026
Senior notes US$150m 2027
Senior notes US$165m 2028
Senior notes US$165m 2029
Senior notes US$160m 2030
Other*
Total borrowings
Total net financial debt
Lease liabilities
Total net debt
(65.9)
(103.8)
(141.9)
(215.5)
(118.6)
(47.3)
(72.0)
(92.7)
(88.8)
(55.5)
–
–
–
–
4.7
(997.3)
(733.3)
(292.3)
(1,025.6)
71.9
103.0
143.7
218.2
(0.1)
–
0.2
–
(0.2)
(0.1)
(109.4)
(123.8)
(123.8)
(120.0)
–
59.6
111.3
81.4
192.7
29
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
Private placement bonds
In October 2011 the Group issued US$140m of senior notes repaid on 18 January 2022 at a fixed annual
interest rate of 3.75% and US$105m repaid on 18 January 2024 at a fixed annual interest rate of 3.85%,
funded from the existing revolving credit facility.
Credit risk
Exposure to credit risk
Credit risks arise mainly from the possibility that customers may not be able to settle their obligations as
agreed. The Group monitors the creditworthiness of customers on an ongoing basis. The Group’s credit risk is
diversified due to the large number of entities, industries and regions that make up the Group’s customer base.
In February 2013 the Group issued US$80m of senior notes. These notes were issued in two tranches, with
US$40m repaid on 14 February 2023 at a fixed annual interest rate of 3.10% and US$40m repayable on
14 February 2025 at a fixed annual interest rate of 3.25%.
In July 2014 the Group issued US$110m of senior notes. These notes were issued in four tranches with
US$15m repaid on 31 July 2021 at a fixed annual interest rate of 3.37%, US$20m repayable on 31 July 2024
at a fixed annual interest rate of 3.86%, US$60m repayable on 31 October 2026 at a fixed annual interest
rate of 4.05% and US$15m repayable on 31 December 2026 at a fixed annual interest rate of 4.10%.
In December 2020 the Group issued US$200m of senior notes. These notes were issued in two tranches
with US$120m repaid on 2 December 2023 at a fixed annual interest rate of 1.97% and US$80m repayable
on 2 December 2025 at a fixed annual interest rate of 2.08%.
In December 2021 the Group issued US$640m of senior notes. These notes were issued in four tranches
with US$150m repayable on 13 January 2027 at a fixed annual interest rate of 2.24%, US$165m repayable
on 15 March 2028 at a fixed annual interest rate of 2.33%, US$165m repayable on 15 March 2029 at a
fixed annual interest rate of 2.47% and US$160m repayable on 15 March 2030 at a fixed annual interest
rate of 2.54%.
In December 2023 the Group issued EUR€185m of senior notes that was drawn. These notes were issued in
three tranches with EUR€120m repayable on 21 December 2026 at a fixed annual interest rate of 3.94%,
EUR€25m repayable on 21 December 2027 at a fixed annual interest rate of 3.89% and EUR€40m repayable
on 21 December 2028 at a fixed annual interest rate of 3.88%.
Lease liabilities
Undiscounted lease liabilities are split into current and non-current as outlined below:
Analysis of lease liabilities falling due:
Current:
Repayable in less than 1 year
Non-current:
Repayable in 1–2 years
Repayable in 2–5 years
Repayable in more than 5 years
Total lease liabilities
2023
£m
2022
£m
79.9
80.5
62.2
104.4
145.6
392.1
61.2
106.5
161.0
409.2
Financial risks
Details of the Group’s treasury controls, exposures and the policies and processes for managing capital
and credit, liquidity, interest rate and currency risk are set out below and in the Financial review in Book one,
pages 30 to 35.
30
The carrying amount of financial assets represents the maximum credit exposure. At the reporting date this
was as follows:
Trade receivables, net of allowance (note 11)
Cash and cash equivalents
Total
2023
£m
526.6
298.6
825.2
2022
£m
532.3
320.7
853.0
The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was
as follows:
Asia Pacific
Americas
Europe, Middle East and Africa
Total
2023
£m
135.2
208.2
183.2
526.6
2022
£m
141.4
205.9
185.0
532.3
Counterparty risk
Cash and cash equivalents and available borrowing facilities are at risk in the event that the counterparty is not
able to meet its obligations in regard to the cash held or facilities available to the Group. The Group also enters
into transactions with counterparties in relation to derivative financial instruments. If the counterparty was
not able to meet its obligations, the Group may be exposed to additional foreign currency or interest rate risk.
Counterparty credit risk inherent in all hedge relationships is monitored throughout the period of the hedge
but this risk is not expected to be significant.
The Group, wherever possible, enters into arrangements with counterparties who have a robust credit
standing, which the Group defines as a financial institution with a credit rating of at least investment grade.
The Group has existing relationships with a number of banks that meet this criterion, and seeks to use their
services wherever possible while avoiding excessive concentration of credit risk. Given the diverse geographic
nature of the Group’s activities, it is not always possible to use a relationship bank. Therefore the Group has set
limits on the level of deposits to be held at non-relationship banks to minimise the risk to the Group. It is also
Group policy to remit any excess funds from local entities back to Intertek Group Treasury in the UK. Given
the controls in place and based on a current assessment of our banking relationships, management does not
expect any counterparty to fail to meet its obligations.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its obligations as and when they fall due.
The Group’s policy is to:
• ensure sufficient liquidity is available to Group companies in the amounts, currencies and locations required
to support the Group’s operations; and
• ensure the Group has adequate available sources of funding to protect against unforeseen internal and
external events.
To ensure this policy is met, the Group monitors cash balances daily, projects cash requirements on a rolling
basis and funds itself using debt instruments with a range of maturities.
The following are the undiscounted contractual cash flows of financial liabilities/(assets) including interest
(for floating rate instruments, interest payments are based on the interest rate at 31 December):
2022
Non-derivative financial
liabilities/(assets)
Senior term loans and notes
Other loans
Trade payables (note 12)
Lease liabilities
Contingent consideration
Carrying
amount
£m
Contractual
cash flows
£m
6 months
or less
£m
6–12
months
£m
1–2 years
£m
2–5 years
£m
More than
5 years
£m
1,061.8
(3.2)
172.8
322.2
1,170.4
0.8
172.8
409.2
47.4
–
164.2
41.4
244.1
–
7.9
39.1
123.4
–
0.7
61.2
337.1
0.2
–
106.5
418.4
0.6
–
161.0
(note 13)
17.2
17.2
2.8
–
0.8
13.6
–
1,570.8
1,770.4
255.8
291.1
186.1
457.4
580.0
Carrying
amount
£m
Contractual
cash flows
£m
6 months
or less
£m
6–12
months
£m
1–2 years
£m
2–5 years
£m
More than
5 years
£m
Derivative financial
liabilities/(assets)
Foreign currency forwards
Outflow
Inflow
910.8
(1.6)
205.3
307.8
1,000.7
0.8
205.3
392.1
94.8
–
199.3
41.6
28.4
–
5.5
38.3
113.2
–
0.5
62.2
505.8
0.1
–
104.4
258.5
0.7
–
145.6
Cross currency interest
rate swaps
Outflow
Inflow
2023
Non-derivative financial
liabilities/(assets)
Senior term loans and notes
Other loans
Trade payables (note 12)
Lease liabilities
Contingent consideration
2.8
(1.1)
1,069.7
(1,068.0)
1,069.7
(1,068.0)
1.7
1.7
1.7
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
1,572.5
1,772.1
257.5
291.1
186.1
457.4
580.0
Interest rate risk
The Group’s objective is to manage the risk to the business from movements in interest rates, and to provide
stability and predictability of the near-term (12-month horizon) interest expense. To achieve this, the Group
uses floating rate bank debt facilities, fixed US private placements and cross currency interest rate swaps.
Sensitivity
At 31 December 2023, it is estimated that the impact on variable rate net debt of a general increase of 3% in
interest rates would be a decrease in the Group’s profit before tax of approximately £8.9m (2022: £11.6m).
This analysis assumes all other variables remain constant.
(note 13)
35.6
35.6
–
–
35.6
–
–
1,457.9 1,634.5
335.7
72.2
211.5
610.3
404.8
Derivative financial
liabilities/(assets)
Foreign currency forwards
Outflow
Inflow
Cross currency interest
rate swaps
Outflow
Inflow
0.7
(0.3)
0.4
776.7
(776.3)
776.7
(776.3)
0.4
0.4
–
–
–
–
–
–
1.7
–
1.7
96.4
(97.8)
(1.4)
0.2
(1.0)
(0.8)
0.2
(1.2)
(1.0)
96.0
(95.6)
0.4
–
–
–
–
–
–
–
–
–
–
–
–
Total
1460.0 1633.5
335.3
71.2
211.9
610.3
404.8
31
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
Foreign currency risk
The Group’s objective in managing foreign currency risk is to safeguard the Group’s financial assets from
economic loss due to fluctuations in foreign currencies, and to protect margins on cross currency contracts and
operations. To achieve this, the Group’s policy is to hedge its foreign currency exposures where appropriate.
The net assets of foreign subsidiaries represent a significant portion of the Group’s shareholders’ funds, and
a substantial percentage of the Group’s revenue and operating costs are incurred in currencies other than
sterling. Due to the high proportion of international activity, the Group’s profit is exposed to exchange rate
fluctuations. Two types of risk arise as a result: (i) translation risk, that is, the risk of adverse currency
fluctuations in the translation of foreign currency operations and foreign assets and liabilities into sterling;
and (ii) transaction risk, that is, the risk that currency fluctuations will have a negative effect on the value of
the Group’s commercial cash flows in various currencies.
The foreign currency profiles of cash, trade receivables and payables subject to translation risk and transaction
risk, at the reporting date, were as follows:
2023
Cash
Trade receivables (note 11)
Trade payables (note 12)
2022
Cash
Trade receivables (note 11)
Trade payables (note 12)
Carrying
amount
£m
298.6
526.6
205.3
Carrying
amount
£m
320.7
532.3
172.8
Sterling
£m
US dollar
£m
24.6
41.4
22.3
97.1
258.9
75.5
Chinese
renminbi
£m
Hong Kong
dollar
£m
Other
currencies
£m
46.7
36.1
22.4
2.4
6.1
2.4
127.8
184.1
82.7
Sterling
£m
US dollar
£m
72.9
37.7
25.6
85.5
216.5
55.7
Chinese
renminbi
£m
Hong Kong
dollar
£m
Other
currencies
£m
42.3
39.5
20.1
0.7
6.5
2.7
119.3
232.1
68.7
Recognised assets and liabilities
Changes in the fair value of foreign currency forwards that economically hedge monetary assets and liabilities
in foreign currencies, and for which no hedge accounting is applied, are recognised in the income statement.
Cash flow hedge
The Group holds a US$40m fixed interest rate USD private placement bond maturing in February 2025 and a
US$80m fixed interest rate USD private placement bond maturing in December 2025. The nominal amount of
these loans as at 31 December 2023 was £93.8m (2022: £nil).
The bonds are hedged using US$40m USD/CNH fixed-to-fixed cross currency swaps maturing in February
2025 and a US$80m USD/CNH fixed-to-fixed cross currency swaps maturing in December 2025.
The cross currency interest rate swaps were bifurcated into two relationships: 1) A cash flow hedge of foreign
currency risk on US$120m borrowings; and 2) A net investment hedge of CNH 876m net assets of the Group.
The weighted average exchange rates for the cross currency interest rates swaps were GBP/USD 1.2300 and
GBP/CNH 8.9790.
The timings of the cash flows on both the hedging instrument and the borrowings re expected to match since
the maturity profile and coupon profile for bond and hedge matches. In 2023, £3.3m of the cash flow hedge
reserve was recycled through to the income statement to offset the impact of the hedged US$40m and
US$80m bond. The remaining balance of the cash flow hedge reserve is expected to be recycled through
to the income statement up to the expiry of the bonds in February 2025 and December 2025 respectively.
Hedge of net investment in foreign operations
The Group’s foreign currency denominated loans are designated as a hedge to protect the same amount
of net investment in the Group’s foreign currency operations and net assets, against adverse changes in
exchange rates.
The Group is exposed to foreign exchange risk exposure arising from its net investment in foreign currency
operations and net assets. The Group uses a combination of debt and cross currency interest rate swaps to
hedge foreign exchange risks. The Group’s foreign currency denominated loans are designated as a hedge to
protect the same amount of net investment in the Group’s foreign currency operations and net assets, against
adverse changes in exchange rates. The nominal amount of these loans as at 31 December 2023 was £817.0m
(2022: £1,061.8m).
The Group’s cross currency interest rate swaps are designated as hedge to protect the same amount of net
investment in the Group’s CNY net assets, against adverse changes in exchange rates. The nominal amount
of these cross currency interest rates as at 31 December 2023 was £93.8m (2022: nil).
189.6m USD/GBP foreign currency forwards were designated as a hedge to protect the same amount of net
investment in the Group’s USD operations and net assets, against adverse changes in exchange rates. The
hedges remained outstanding as at 31 December 2021 and were settled during March 2022.
32
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
A foreign exchange loss of £58.8m (2022: £120.0m foreign exchange gain) was recognised in the translation
reserve in equity, reflecting the translation of the Group’s foreign currency denominated loans to sterling
and the impact of changes in fair value of the foreign currency forwards. The weighted average exchange
rates of the borrowings designated as net investment hedge was GBP/USD 1.3906 and GBP/EUR 1.1525.
The Group has the following hedging instruments:
Other comprehensive income
Nominal
amounts in
local currency
Carrying
value
£m
1 January
2023
£m
FX (gain)/
loss
recycled
to the
income
statement
£m
Fair value
gain/(loss)
deferred
to OCI
£m
Hedges
closed in
year
£m
31
December
2023
£m
2023
Cash flow hedges –
foreign exchange and
interest rate risk
Cross currency interest rate
swaps- continuing
Hedges of net investment
in a foreign operation –
foreign exchange risk
Forward currency forward
– discontinued
Cross currency interest rate
swaps – continuing
Cross currency interest rate
swaps – discontinued
Foreign currency borrowings
–
(3.4)
3.3
–
(0.1)
–
–
–
–
–
–
–
–
1.2
–
–
1.7
(19.0)
–
–
–
–
–
–
–
–
–
1.2
1.7
(19.0)
(3.7)
(92.1)
3.7
(191.6)
– continuing
£910.8m
910.8
(145.5)
57.1
Foreign currency borrowings
– discontinued
–
–
(195.3)
–
910.8
(358.6)
55.4
3.3
–
(299.9)
The Group entered into AU$264m of foreign currency forwards which paid USD and received AUD, which
matured in March 2022. The foreign currency forwards were bifurcated into two relationships: 1) a cash flow
hedge of AU$264m versus GBP foreign currency risk in AUD denominated borrowings; and 2) a net investment
hedge of USD versus GBP foreign currency risk in USD denominated net assets of the Group.
The weighted average exchange rates of the forwards were GBP/USD 1.3209 and GBP/AUD 1.8388.
33
Other comprehensive income
Nominal
amounts in
local currency
Carrying
value
£m
1 January
2022
£m
FX (gain)/
loss
recycled
to the
income
statement
£m
Fair value
gain/(loss)
deferred
to OCI
£m
Hedges
closed in
year
£m
31
December
2022
£m
2022
Cash flow hedges –
foreign exchange and
interest rate risk
Foreign currency forward
– continuing
Hedges of net investment
in a foreign operation –
foreign exchange risk
Foreign currency forward
– continuing
Forward currency forward
– discontinued
Cross currency interest rate
swaps – discontinued
Foreign currency borrowings
–
1.9
(1.9)
–
–
–
–
–
–
–
–
–
3.0
(1.8)
–
(19.0)
–
–
–
–
–
–
–
–
–
(1.2)
1.2
1.2
–
(19.0)
19.2
(145.5)
(19.2)
(195.3)
– continuing
£1,061.8m 1,061.8
(46.5)
(118.2)
Foreign currency borrowings
– discontinued
–
–
(176.1)
–
1,061.8
(238.6)
(118.1)
(1.9)
–
(358.6)
The foreign currency forwards previously designated in discontinued hedge relationships were disclosed
within other receivables in the statement of financial position. The cross currency interest rate swaps
designated in hedge relationships are disclosed within other payables in the statement of financial position.
Foreign currency denominated loans and their corresponding hedged items are matched and the Group
expects highly effective hedging relationships. The change in value of the hedged item is used as the basis
for recognising hedge ineffectiveness for the period. Net ineffectiveness on the net investment hedges
recognised in the income statement was £nil.
Hedge ineffectiveness may occur if there are insufficient net assets in foreign currency to match hedging
instruments in the relevant currency.
The hedge ratio for each designation will be established by comparing the quantity of the hedging instrument
and the quantity of the hedged item to determine their relative weighting; for all of the Group’s existing hedge
relationships the hedge ratio has been determined as 1:1.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 14 Borrowings and financial instruments Continued
The carrying values of the hedging instruments; US$840.0m senior notes and EUR€185.0m senior notes are
included within borrowings within the statement of financial position.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
Fair value gains and losses on the hedging instruments designated in the cash flow and net investment hedges
have been presented as ‘fair value on cash flow hedges’ and ‘net exchange on hedges of net investments in
foreign operations’ respectively within the statement of other comprehensive income.
Level 3: Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs).
Foreign exchange losses of £3.3m recycled from the cash flow hedge reserve are presented in interest on
borrowings within finance expenses in the income statement.
Sensitivity
It is estimated that an increase of 10% in the value of sterling against the US dollar and Chinese renminbi
(the main currencies impacting the Group) would have increased the Group’s profit before tax for 2023
by approximately £22.6m (2022: £20.4m decrease). This analysis assumes all other variables remain constant.
It is estimated that an increase of 10% in the value of sterling against the currencies of the hedging
instruments would have increased OCI by approximately £83.0m (2022: £96.5m) which would be offset
by the retranslation of the Group’s investment in foreign operations in the same currencies. This analysis
assumes all other variables remain constant.
Fair values
The table below provides a comparison of book values and corresponding fair values of all the Group’s financial
instruments by class.
Financial assets
Cash and cash equivalents
Trade receivables (note 11)
Foreign currency forwards*
Total financial assets
Financial liabilities
Interest-bearing loans and borrowings
Trade payables (note 12)
Foreign currency forwards*
Cross currency interest rate swaps*
Contingent consideration**
Book value
2023
£m
Fair value
2023
£m
Book value
2022
£m
Fair value
2022
£m
298.6
526.6
0.3
825.5
909.2
205.3
0.7
1.7
35.6
298.6
526.6
0.3
825.5
817.3
205.3
0.7
1.7
35.6
320.7
532.3
1.1
854.1
1,058.6
172.8
2.8
–
17.2
320.7
532.3
1.1
854.1
936.8
172.8
2.8
–
17.2
Total financial liabilities
1152.5
1060.6
1,251.4
1,129.6
*
Cross currency interest rate swaps and foreign currency forwards are categorised as Level 2, under which the fair value is measured using
inputs other than quoted prices observable for the asset or liability, either directly or indirectly.
** Contingent consideration is categorised as Level 3 under which the fair value is measured using unobservable inputs – being the EBITDA
performance of the acquired companies.
34
15 Capital and reserves
Accounting policy
Dividends
Interim dividends are recognised as a movement in equity when they are paid. Final dividends are reported
as a movement in equity in the year in which they are approved by the shareholders.
Own shares held by the Employee Share Ownership Trust (‘ESOT’)
Transactions of the Group-sponsored ESOT are included in the Group financial statements. In particular,
the Trust’s purchases of shares in the Company are debited directly in equity to retained earnings.
Share capital
Group and Company
Allotted, called up and fully paid:
Ordinary shares of 1p each at start of year
Share awards
Ordinary shares of 1p each at end of year
Shares classified in shareholders’ funds
2023
number
2023
£m
2022
£m
161,393,127
–
161,393,127
1.6
-
1.6
1.6
1.6
–
1.6
1.6
The holders of ordinary shares are entitled to receive dividends and are entitled to vote at general meetings
of the Company.
During the year, the Company issued nil (2022: nil) ordinary shares in respect of all share plans.
Purchase of own shares for trust
During the year ended 31 December 2023, the Company financed the purchase of 278,751 (2022: 45,000) of
its own shares with an aggregate nominal value of £2,788 (2022: £450) for £11.6m (2022: £2.3m) which was
charged to retained earnings in equity and was held by the ESOT. This trust is managed by an independent
offshore trustee. During the year, 261,359 shares were utilised to satisfy the vesting of share awards (note
17). At 31 December 2023, the ESOT held 149,799 shares (2022: 132,407 shares) with an aggregate nominal
value of £1,498 (2022: £1,324). The associated cash outflow of £11.6m (2022: £2.3m) has been presented as
a financing cash flow.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 15 Capital and reserves Continued
Dividends
Amounts recognised as distributions to equity holders:
Final dividend for the year ended 31 December 2021
Interim dividend for the year ended 31 December 2022
Final dividend for the year ended 31 December 2022
Interim dividend for the year ended 31 December 2023
Dividends paid
2023
£m
2023
Pence per
share
–
–
115.5
60.8
176.3
–
–
71.6
37.7
109.3
2022
£m
115.5
55.1
–
–
170.6
2022
Pence per
share
71.6
34.2
–
–
105.8
After the reporting date, the Directors proposed a final dividend of 74.0p per share in respect of the year
ended 31 December 2023, which is expected to amount to £120.2m. This dividend is subject to approval
by shareholders at the Annual General Meeting and therefore, in accordance with IAS 10 Events After the
Reporting Date, it has not been included as a liability in these financial statements. If approved, the final
dividend will be paid to shareholders on 21 June 2024.
Reserves
Translation reserve
The translation reserve comprises foreign currency differences arising from the translation of the financial
statements of foreign operations as well as the translation of liabilities that hedge the Group’s net investment
in foreign operations.
Other
This reserve includes a merger difference that arose in 2002 on the conversion of share warrants into share
capital, as well as the cash flow hedge reserve.
16 Employee benefits
Accounting policy
Pension schemes
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations
for contributions to defined contribution pension plans are recognised as an employee benefit expense in the
income statement as incurred.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The Group’s net obligation in respect of material defined benefit pension plans is calculated separately for each
plan by estimating the amount of future benefit that employees have earned in return for their service in the
current and prior years; that benefit is discounted to determine its present value. The fair value of any plan
assets is deducted.
35
In calculating the defined benefit surplus or deficit, the discount rate is the yield at the reporting date on AA
credit-rated bonds that have maturity dates approximating the terms of the Group’s obligations and that are
denominated in the same currency in which the benefits are expected to be paid. The calculation is performed
annually by a qualified actuary using the projected unit credit method.
The increase in the present value of the liabilities expected to arise from the employees’ services in the
accounting period is charged to the operating profit in the income statement. The expected return on the
schemes’ assets and the interest on the present value of the schemes’ liabilities, during the accounting period,
are shown as finance income and finance expense, respectively.
The Group operates a number of pension schemes throughout the world. In most locations, these are defined
contribution arrangements. However, there are significant defined benefit schemes in the United Kingdom
and Switzerland. The United Kingdom Scheme is funded, with assets held in separate trustee-administered
funds and the Switzerland Scheme is an insured scheme. The scheme in the United Kingdom was closed to new
entrants in 2002. Other funded defined benefit schemes are not considered to be material and are therefore
accounted for as if they were defined contribution schemes.
In line with IAS 19 and IFRIC 14, if a scheme has a surplus this is recognised on the statement of financial
position if the economic benefit is available to the Group as a result of the surplus. Economic benefit is defined
as when an entity has an unconditional right to a refund from the scheme whilst the scheme is ongoing; or
assuming the gradual settlement of the scheme liabilities over time until all members have left the scheme/
died; or assuming the full settlement of the scheme’s liabilities in a single event. In the event of a surplus,
the relevant scheme rules will be reviewed in line with IFRIC 14 and a legal opinion obtained to identify if the
surplus can be recognised by the Group.
The Group recognises all actuarial remeasurements in each year in equity through the consolidated statement
of comprehensive income.
Total pension cost
The total pension cost included in operating profit for the Group was:
Defined contribution schemes
Defined benefit schemes – current service cost and administration expenses
Pension cost included in operating profit (note 5)
2023
£m
(59.8)
(1.2)
(61.0)
2022
£m
(59.6)
(1.9)
(61.5)
The pension cost for the defined benefit schemes was assessed in accordance with the advice of qualified
actuaries. The last full triennial actuarial valuation of The Intertek Pension Scheme in the United Kingdom
(‘United Kingdom Scheme’) was carried out as at 31 March 2022, and for IAS 19 accounting purposes has
been updated to 31 December 2023. The Switzerland Scheme was valued for IAS 19 purposes as at
31 December 2023. The average duration of the schemes’ liabilities is 13 years for the United
Kingdom Scheme and 16 years for the Switzerland Scheme.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 16 Employee benefits Continued
Defined benefit schemes
The cost of defined benefit schemes
The amounts recognised in the income statement were as follows:
Current service cost
Scheme administration expenses
Net pension interest income (note 14)
Total charge
2023
£m
(0.8)
(0.4)
1.0
(0.2)
2022
£m
(1.5)
(0.4)
0.1
(1.8)
The current service cost and scheme administration expenses are included in operating costs in the income
statement and pension interest cost and interest income are included in net financing costs.
Included in other comprehensive income:
Remeasurements arising from:
Demographic assumptions
Financial assumptions
Experience adjustment
Asset valuation
Other
Total
2023
£m
2022
£m
0.2
(5.4)
(0.5)
2.5
0.6
(2.6)
(0.6)
52.3
(5.3)
(29.8)
0.8
17.4
Company contributions
In 2022 the Company assessed the triennial actuarial valuation for the United Kingdom Scheme and its impact
on the scheme funding plan in 2022 and future years. In 2024 the Group expects to make normal contributions
of £0.6m (2023: £0.6m) and a special contribution of £nil (2023: £nil). The next triennial valuation is due to
take place as at 31 March 2025 and will include a review of the Company’s future contribution requirements.
Pension asset/liability for defined benefit schemes
The amounts recognised in the statement of financial position for defined benefit schemes were as follows:
31 December 2023
Fair value of scheme assets
Present value of funded defined benefit obligations
Surplus/(deficit) in schemes
36
United
Kingdom
Scheme
£m
111.8
(90.0)
21.8
Switzerland
Scheme
£m
14.4
(19.2)
(4.8)
Total
£m
126.2
(109.2)
17.0
The fair value changes in the scheme assets are shown below:
Fair value of scheme assets at 1 January
Interest income
Normal contributions by the employer
Special contributions by the employer
Contributions by scheme participants
Benefits paid
Effect of exchange rate changes on overseas schemes
Remeasurements
Scheme administration expenses
Settlements*
2023
£m
121.1
5.5
1.4
–
0.6
(4.9)
0.4
2.5
(0.4)
–
2022
£m
155.4
2.7
1.3
2.0
0.6
(4.2)
1.5
(29.8)
(0.4)
(8.0)
Fair value of scheme assets at 31 December
126.2
121.1
*
Settlements represent transfer to the reinsurer of assets and legal obligations related to the benefits provided to inactive members of part
of the Switzerland Scheme.
Asset allocation
Investment statements were provided by the investment managers which showed that, as at 31 December
2023, the invested assets of the United Kingdom Scheme totalled £111.8m (2022: £108.2m), broken down
as follows:
Asset class
Equities
Property
Liability-Driven Investment (‘LDI’)*
Corporate debt instruments
Cash
Total
United Kingdom Scheme
2023
£m
44.5
3.1
12.2
46.6
5.4
2022
£m
44.2
4.5
11.8
37.9
9.8
111.8
108.2
*
Investments are included at fair value. The pooled investment vehicles are held under a managed fund policy in the name of the Scheme.
Pooled investment vehicles (including the LDI Fund) which are not traded on active markets, but where the investment manager has provided
a monthly trading price, are valued using the last single price, provided by the investment manager at or before the year-end. The LDI Fund
provides the hedge against adverse movements in inflation and interest rates. It seeks to match the sensitivity of the Scheme’s liability cash
flow to changes in interest rates and inflation; it is invested in gilts, swaps, futures, repo contracts and money market instruments.
During February 2024, following a review of the Scheme’s investment strategy and funding level, the Trustee
agreed to changes to the Scheme’s asset allocation by class. These changes, which will be completed by June
2024, will reduce future funding level volatility and de-risk the Scheme’s strategy by investing in assets that
in aggregate will broadly match movements in liabilities. The change to asset classes does not incur material
costs to the Scheme.
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 16 Employee benefits Continued
The United Kingdom Scheme had bank account assets of £2.4m as at 31 December 2023 (2022: £9.6m).
Life expectancy assumptions at year-end for:
The United Kingdom Scheme invested assets comprising both quoted and unquoted assets. The value of
quoted assets in 2023 was £11.4m (2022: £11.7m), included within equities in the above table, with the
remaining assets being unquoted. The invested assets of the Switzerland Scheme comprise cash in savings
and contribution accounts. The Switzerland Scheme is fully insured.
Changes in the present value of the defined benefit obligations were as follows:
Male aged 40
Male aged 65
Female aged 40
Female aged 65
United Kingdom Scheme
Switzerland Scheme
2023
48.3
21.6
50.4
23.7
2022
48.4
21.7
50.6
23.8
2023
49.5
22.0
51.1
23.8
2022
49.4
22.0
51.0
23.7
2023
£m
102.0
0.8
4.4
0.7
(4.9)
0.5
5.7
–
109.2
2022
£m
154.0
1.5
2.6
0.7
(4.2)
1.8
(46.4)
(8.0)
102.0
The table above shows, for the United Kingdom Scheme, the number of years a male or female is expected
to live, assuming they were aged either 40 (and lives to 65) or 65 at 31 December. The mortality tables
adopted in 2023 for the United Kingdom Scheme are S3PA tables, based on the CMI 2022 mortality projection
model with a 1.25% long-term annual rate for future improvements. In 2022 the S3PA tables were used, based
on the CMI 2021 mortality projection model with a 1.25% long-term annual rate for future improvement. For
the Switzerland Scheme, the mortality table adopted in 2023 and 2022 is the BVG 2020, an industry standard
in Switzerland which is based on statistical evidence of major Switzerland pension funds.
Sensitivity analysis
The table below sets out the sensitivity on the United Kingdom pension assets and liabilities as at
31 December 2023 of the two main assumptions:
United Kingdom Scheme
Switzerland Scheme
Change in assumptions
2023
%
4.6
2.05
–
2.1
1.7
2022
%
4.85
2.1
–
2.15
1.7
2023
%
1.4
n/a
1.75
n/a
n/a
2022
%
2.3
n/a
1.75
n/a
n/a
No change
0.25% rise in discount rate
0.25% fall in discount rate
0.25% rise in inflation
0.25% fall in inflation
The United Kingdom Scheme is also subject to the mortality assumption. If the mortality tables used are rated
up/down one year, the value placed on the liabilities increases by £3.4m and decreases by £3.4m, respectively.
Funding arrangements
United Kingdom Scheme
The Trustees use the projected unit credit method with a three-year control period. Currently the scheme
members pay contributions at the rate of 8.5% of salary. The employer pays contributions of 18.5% of salary,
plus £0.2m per year to fund scheme expenses. The employer has not made any additional contributions in
2023 as a result of the surplus disclosed by the 2022 valuation.
United Kingdom Scheme
Increase/
(decrease) in
surplus/
deficit
£m
–
(2.8)
3.0
1.4
(1.5)
Liabilities
£m
90.0
87.2
93.0
91.4
88.5
Defined benefit obligations at 1 January
Current service cost
Interest cost
Contributions by scheme participants
Benefits paid
Effect of exchange rate changes on overseas schemes
Remeasurements
Settlements
Defined benefit obligations at 31 December
Principal actuarial assumptions:
Discount rate
Inflation rate (based on CPI)
Rate of salary increases
Rate of pension increases:
CPI subject to a maximum of 5% p.a.
Increases subject to a maximum of 2.5% p.a.
The Switzerland Scheme is an insured plan.
37
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 16 Employee benefits Continued
Funding risks
The main risks for the schemes are:
Investment return risk:
Investment matching risk:
If the assets underperform the returns assumed in setting the funding
targets then additional contributions may be required at subsequent
valuations.
The schemes invest significantly in equities, whereas the funding targets are
closely related to the returns on bonds. If equities fall in value relative to the
matching asset of bonds, additional contributions may be required.
Longevity risk:
If future improvements in longevity exceed the assumptions made for
scheme funding then additional contributions may be required.
Role of third parties
The United Kingdom Scheme is managed by Trustees on behalf of its members. The Trustees take advice
from appropriate third parties including investment advisers, actuaries and lawyers as necessary.
17 Share schemes
Accounting policy
Share-based payment transactions
The share-based compensation plans operated by the Group allow employees to acquire shares of the
Company. The fair value of the employee services, received in exchange for the grant of shares, is measured
at the grant date and is recognised as an expense with a corresponding increase in equity. The charge is
calculated using the Black-Scholes method and expensed to the income statement over the vesting period of
the relevant award. The charge for the Deferred Share Awards is adjusted to reflect expected and actual levels
of vesting for service conditions. The expense of the LTIP Share Awards is calculated using the Monte Carlo
method and the fair value adjusted for the probability of performance conditions being achieved.
Share plans
2011 Long Term Incentive Plan
The Deferred Bonus Plan 2005 was replaced in 2011 with the Intertek 2011 Long Term Incentive Plan (‘LTIP’).
Deferred Share Awards (previously Share Awards) and LTIP Share Awards (previously Performance Awards)
have been granted under this plan. The first awards were granted on 7 April 2006. The awards under these
plans vest three years after grant date, subject to fulfilment of the performance conditions. The last awards
under the 2011 Plan vested in 2023.
2021 Long Term Incentive Plan
The Intertek 2021 Long Term Incentive Plan (‘2021 Plan’) was approved at the 2020 Annual General Meeting
as the Intertek 2011 Long Term Incentive Plan was approaching the end of its ten-year life cycle. The 2021
Plan is broadly similar to the previous Long Term Incentive Plan, but with amendments to take account of
developments in market practice. The awards made in 2023 were made under the 2021 Plan on 13 March
2023 and 6 June 2023. The awards under these plans vest three years after grant date, subject to fulfilment
of the non-market based performance conditions.
2023
2022
Outstanding awards
At beginning of year
Granted*
Vested**
Forfeited
Deferred
Share Awards
LTIP Share
Awards
Total awards
Deferred
Share Awards
LTIP Share
Awards
674,193
307,630
(229,836)
(60,473)
810,416 1,484,609
746,612
438,982
(381,853)
(152,017)
(223,278)
(162,805)
662,706
323,181
(251,311)
(60,383)
791,842
359,589
–
(341,015)
Total awards
1,454,548
682,770
(251,311)
(401,398)
At end of year
691,514
934,576 1,626,090
674,193
810,416
1,484,609
*
Includes 15,317 Deferred Share Awards (2022: 15,388) and 22,907 LTIP Share Awards (2022: 21,150 ) granted in respect of dividend
accruals.
** Of the 381,853 awards vested in 2023, nil were satisfied by the issue of shares and 252,075 by the transfer of shares from the ESOT (see
note 15). The balance of 129,778 awards represented a tax liability of £5.4m (2022: £4.1m) which was settled in cash on behalf of
employees by the Group, of which £4.7m was settled by the Company.
Buyout Awards
On 1 April 2021, Jonathan Timmis was granted conditional rights to acquire 39,000 shares under a one-off
arrangement as a condition of his recruitment as CFO of the Company, granted under the Long Term Incentive
Plan 2021. The award comprised three parts of 13,000 shares, vesting on 1 April 2022, 1 April 2023 and
1 April 2024. Further details are shown in the Remuneration report in Book two, pages 78 to 103..
Deferred Share Plan
Awards may be granted under the Deferred Share Plan (‘DSP’) to employees of the Group (other than the
Executive Directors of the Company) selected by the Remuneration Committee over existing, issued ordinary
shares of the Company only. The DSP was adopted primarily to allow for the deferral of a proportion of
selected employees’ annual bonus into shares in the Company but may also be used for the grant of other
awards (such as incentive awards and buyout awards for key employees) in circumstances that the
Remuneration Committee deems appropriate. Awards will normally have a three-year vesting period.
Awards may be made subject to performance conditions and are subject to normal good and bad leaver
provisions and malus and clawback.
Outstanding awards
At beginning of year
Granted*
Vested**
Forfeited
At end of year
2023
2022
Deferred
Share Awards
Total
awards
Deferred
Share Awards
Total
awards
37,804
14,315
(14,827)
(6,409)
37,804
14,315
(14,827)
(6,409)
37,368
22,420
(21,984)
–
37,368
22,420
(21,984)
–
30,883
30,883
37, 8 0 4
37, 8 0 4
Includes 815 Deferred Share Awards (2022: 1,119) granted in respect of dividend accruals.
*
** Of the 14,827 awards vested in 2023, 9,284 were satisfied by the transfer of shares from the ESOT (see note 15). The balance of 5,543
awards represented a tax liability of £0.2m which was settled in cash on behalf of employees by the Group, of which £0.2m was settled by
the Company.
38
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 17 Share schemes Continued
Equity-settled transactions
During the year ended 31 December 2023, the Group recognised an expense of £21.2m (2022: £17.5m). The
weighted average fair values and the assumptions used in their calculations are set out below:
18 Subsequent events
On 18 January 2024, funded from the existing revolving facility, a US$105m senior note at a fixed annual
interest rate of 3.85% was repaid.
Fair value at measurement date (pence)
Share price (pence)
Share price volatility
Risk free rate
Time to maturity (years)
Fair value at measurement date (pence)
Share price (pence)
Share price volatility
Risk-free rate
Time to maturity (years)
2023 Awards
Deferred
Share Awards
Share
Awards
LTIP Share
Awards
4,384
4,384
4,057
4,057
–
–
1–3
–
–
3
3,487
4,050
27.6%
3.3%
3
2022 Awards
Deferred
Share Awards
Share
Awards
LTIP Share
Awards
4,636
4,636
4,845
4,845
–
–
1–3
–
–
3
4,180
4,180
26.6%
1.3%
3
The weighted average exercise prices of all share awards in the year are £nil (2022: £nil).
All Share Awards are granted under a service condition. Such condition is not taken into account in the fair
value measurement at grant date. From 2020 the LTIP Share Awards were granted under performance-related
non-market conditions only.
During February 2024, following a review of the United Kingdom pension Scheme’s investment strategy and
funding level, the Trustee approved changes to the Scheme’s asset allocation by class, as described in note 16.
19 Capital management
The Directors determine the appropriate capital structure of Intertek; specifically how much capital is raised
from shareholders (equity) and how much is borrowed from financial institutions (debt) in order to finance the
Group’s activities. These activities include ongoing operations as well as acquisitions as described in note 10.
The Group’s policy is to maintain a robust capital base (including cash and debt) to ensure the market and key
stakeholders retain confidence in the capital profile. Debt capital is monitored by Group Treasury assessing the
liquidity buffer on a short- and longer-term basis as discussed in note 14. Financial net debt has decreased from
£737.9m at 31 December 2022 to £610.6m at 31 December 2023. The Group has a strong balance sheet with
financial net debt to EBITDA of 0.8x (2022: 1.1x).
During 2023, the Group has continued the working capital focus, and through disciplined performance
management, working capital has reduced by £31.0m to negative £78.8m. Working capital is defined on page 3.
The Group uses key performance indicators, including return on invested capital (‘ROIC’) and adjusted diluted
earnings per share to monitor the capital position of the Group to ensure it is being utilised effectively. The rate
of ROIC, defined as adjusted operating profit less adjusted taxes divided by invested capital, measures how
effectively the Group generates profit from its invested capital. This is a key measure to assess the efficiency
of investment decisions and is also an important criterion in the decision-making process. ROIC in 2023 was
20.5% (2022: 18.0%). Adjusted diluted earnings per share is a key measure of value creation for the Board and
for shareholders and in 2023 was 223.0p (2022: 211.1p).
The dividend policy also forms part of the Board’s capital management policy, and the Board ensures there is
appropriate earnings cover for the dividend proposed at both the interim and year-end. Our current dividend
policy aims to deliver sustainable dividend growth over time, based on a target dividend payout ratio of c.50%.
Reflecting the Group’s strong cash generation in 2023, the recommended final dividend is 74.0p bringing the full
year dividend to 111.7p, which is a year-on-year increase of 5.6%, and reflects a dividend payout ratio of 50%.
39
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 22 Contingent liabilities
Guarantees, letters of credit and performance bonds
2023
£m
41.1
2022
£m
40.0
Litigation
The Group is involved in various claims and lawsuits incidental to the ordinary course of its business, including
claims for damages, negligence and commercial disputes regarding inspection and testing, and disputes with
employees and former employees. The Group is not currently party to any legal proceedings other than
ordinary litigation incidental to the conduct of business. These claims are not currently expected to result in
meaningful costs and liabilities to the Group. The Group maintains appropriate insurance cover to provide
protection from the small number of significant claims it is subject to from time to time.
Tax
The Group operates in more than 100 countries and with complex tax laws and regulations. At any point in
time it is normal for there to be a number of open years which may be subject to enquiry by local authorities.
In some jurisdictions the Group receives tax incentives (see note 6) which are subject to renewal and review
and reduce the amount of tax payable. Where the effect of the laws and regulations is unclear, estimates are
used in determining the liability for the tax to be paid. The Group considers the estimates, assumptions and
judgements to be reasonable but this can involve complex issues which may take a number of years to resolve.
20 Non-controlling interest
Accounting policy
Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity
as owners and therefore no goodwill is recognised as a result of such transactions.
Non-controlling interest
An analysis of the movement in non-controlling interest is shown below:
At 1 January
Exchange adjustments
Share of profit for the year
Adjustment arising from changes in non-controlling interest
Dividends paid to non-controlling interest
At 31 December
2023
£m
34.0
(2.2)
20.7
(0.7)
(15.1)
36.7
2022
£m
32.3
0.3
18.0
–
(16.6)
34.0
21 Related parties
Identity of related parties
The Group has a related party relationship with its key management. Balances and transactions between the
Company and its subsidiaries and between subsidiaries have been eliminated on consolidation and are not
discussed in this note.
Transactions with key management personnel
Key management personnel compensation, including the Group’s Directors, is shown in the table below:
Short-term benefits
Post-employment benefits
Equity-settled transactions
Total
2023
£m
12.5
0.6
10.8
23.9
2022
£m
9.8
0.7
3.6
14.1
More detailed information concerning Directors’ remuneration, shareholdings, pension entitlements and
other long-term incentive plans is shown in the audited parts of the Remuneration report in Book two,
pages 92 to 103. Apart from the above, no member of key management had a personal interest in any
business transactions of the Group.
40
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies
The principal subsidiaries whose results or financial position, in the opinion of the Directors, principally affect
the figures of the Group have been shown below. All the subsidiaries shown were consolidated with Intertek
Group plc as at 31 December 2023. Unless otherwise stated, these entities are wholly owned indirect
subsidiaries and the address of the registered office is Academy Place, 1–9 Brook Street, Brentwood, Essex,
CM14 5NQ, United Kingdom.
Company name
Intertek Australia Holdings Pty Limited (i)
Intertek Finance plc
Intertek Holdings Limited (ii)
Intertek Technical Services, Inc. (iii)
Intertek Testing Services Holdings Limited (ii)
Intertek Testing Services Hong Kong Limited (iv)
Intertek Testing Services Limited Shanghai (v)
Intertek Testing Services NA, Inc. (vi)
Intertek Testing Services Shenzhen Limited (vii)
Intertek USA, Inc. (viii)
Intertek USD Finance Limited
Labtest Hong Kong Limited (ix)
RCG-Moody International Limited
Testing Holdings USA, Inc. (vi)
Country of Incorporation and principal place of
operation
Australia
England
England
USA
England
Hong Kong
China
USA
China
USA
England
Hong Kong
England
USA
Activity
Holding
Finance
Holding
Trading
Holding
Trading
Trading
Trading
Trading
Trading
Finance
Trading
Holding
Holding
(i) Registered office address: 544 Bickley Road, Maddington WA 6109, Australia.
(ii) Directly owned by Intertek Group plc.
(iii) Registered office address is: 25025 I-45, Suite 300, Spring, TX 77380, United States.
(iv) Registered office address is: 2/F Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong.
(v) Equity shareholding 85%, company controlled by the Group based on management’s assessment; Registered office address is: 2nd Floor,
West District, Free Trade Test Zone, Zhangyang Road, Shanghai, China.
(vi) Registered office address is: 3933 US Route 11, Cortland, NY 13045, United States.
(vii) Registered office address is: 3-5/F of Bldg. 1, 1-5/F of Bldg. 3, No. 4012, Wuhe Ave. North, Bantian Street, Yuanzheng Science and Technology
Industrial Park, Shenzhen, Guangdong, China.
(viii) Registered office address is: 545 E. Algonquin Road, Arlington Heights, Illinois 60005, United States.
(ix) Registered office address is: 2/F, Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong.
Group companies
In accordance with section 409 of the Companies Act 2006, all related undertakings are set out in the
following list. Related undertakings comprise subsidiaries, partnerships, associates, joint ventures and joint
arrangements. The principal subsidiaries listed above have not been duplicated in the following list.
Where no address is listed, the address of the registered office is Academy Place, 1–9 Brook Street, Brentwood,
Essex, CM14 5NQ, United Kingdom. Unless otherwise stated, the share capital for all related undertakings
included in this note comprises ordinary or common stock shares which are indirectly held by Intertek Group plc
as at 31 December 2023. The percentage held by class of share is stated where this is less than 100%. No
subsidiary undertakings have been excluded from the consolidation.
Fully owned subsidiaries
0949491 B.C. Limited
1200-925 West Georgia Street, Vancouver, British Columbia, V6C 3L2, Canada
4th Strand, LLC (i) (xv)
1950 Evergreen Boulevard, Suite 100, Duluth, GA 30096, United States
Acucert Labs, LLP (xv)
82/2, Shreyas, 25th Road, Sion West, Mumbai, 400022, India
Acumen Security, LLC
2400 Research Blvd, Suite 395, Rockville, MD 20850, United States
Adelaide Inspection Services Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
Admon Labs Servicios Corporativos y Administrativos, S.A. de C.V.
Boulevard Adolfo Lopez Mateos #2259, Atlamaya, Alvaro Obregon, Ciudad de Mexico, C.P. 01760, Mexico
Advancing Food Safety Pty Limited. (i)
544 Bickley Road, Maddington WA 6109, Australia
Ageus Solutions Inc.
255 Michael Cowpland Dr., Suite 200, Ottawa, Ontario, K2M 0M5, Canada
Alchemy Investment Holdings, Inc.
5300 Riata Park Court, Austin, TX 78727, United States
Alchemy Systems, L.P. (xv)
5301 Riata Park Court, Austin, TX 78727, United States
Alchemy Systems Training, Inc.
5300 Riata Park Court, Austin, TX 78727, United States
Alchemy Systems Training Limited
Alchemy Training Technologies, Inc.
1 Germain Street, Suite 1500, Saint John, NB E2L 4V1, Canada
Alta Analytical Laboratory, Inc. (i)
200 Westlake Park Blvd., Westlake Building 4, Suite 400, Houston, TX 77079, United States
Anstat Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
Architectural Testing, Inc.
130, Derry Court, York, PA 17406, United States
Architectural Testing Holdings, Inc.
130 Derry Court, York, PA 17406, United States
Bellini & Sandrini Holding LTDA
Rua Carlos Tosin, 860, sala 1, Distrito Industrial, Distrito Industrial, Estado de São Paulo, Brazil
Bigart Ecosystems, LLC (xv)
212 S. Wallace Avenue Bozeman, MT 59715, United States
41
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Caleb Brett Ecuador S.A.
Centro Commercial Mall del Sol, Av. Joaquín Orrantia González y Juan Tanca Marengo, Torre B, Piso 5,
Oficina 505, Guayaquil, Ecuador
Catalyst Awareness, Inc.
43 Carolinian Lane, Cambridge, ON N1S 5B5, Canada
Center for the Evaluation of Clean Energy Technology, Inc.
3933 US Route 11, Cortland, NY 13045, United States
Check Safety First Limited
Checkpoint Solutions Ltd
Cristal Middle East SAE
22 El-Imam Ali, Almazah, Heliopolis, Cairo Governorate, Egypt
Cristal North Africa CNA
Immeuble, SOGIT Faisant angle de la rue, lac victoria, et rue du des lacs de mazurie, les berges du lac,
1053 Tunis Le bureau, B5 situé, au 2ème étage, Tunis, Tunisia
Electronic Warfare Associates-Canada, Ltd
1223 Michael Street North, Suite 200, Ottawa, ON K1J 7T2, Canada
Enertech Australia Pty. Limited
544 Bickley Road, Maddington WA 6109, Australia
Entela-Taiwan, Inc
4700 Broadmoor Avenue SE, Suite 200, Kentwood, MI 49512, United States
Esperanza Guernsey Holdings Limited
PO Box 472, St Julian’s Court, St Julian’s Avenue, St Peter Port, GY1 6AX, Guernsey
Esperanza International Services (Southern Africa) (Pty.) Limited
Charter House, 13 Brand Road, Glenwood, Durban, South Africa
Excel Partnership, Inc.
250 S. Wacker Drive, Suite 1800, Chicago, IL 60606, United States
Fivetix Professional Services Private Limited
F-Wing, I Floor, Tex Centre, 26-A Chandiwali Farm Road, Andheri (East) Mumbai Mumbai City MH 400072, India
Four Front Research (India) Pvt Limited (ii)
Plot# 847, 5th Floor, Near Electricity Substation, Ayyappa Society Road, Madhapur, Hyderabad, Telangana,
500081, India
Frameworks Inc.
1595 Sixteenth Avenue, Suite 301, Richmond Hill, ON L4B 3N9, Canada
Gamatek, S.A. de C.V.
Alanis Valdez #2308, Industrial, Monterrey, Nuevo Leon, Mexico
GCA Calidad y Analisis de Mexico, S.A. de C.V.
Jacarandas #19, San Clemente, Alvaro Obregon, Ciudad de Mexico, C.P. 01740, Mexico
Gellatly Hankey Marine Services (M) Sdn. Bhd.
Unit 30-01 Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200
Kuala Lumpur, Malaysia
Genalysis Laboratory Services Pty Limited (vi)
544 Bickley Road, Maddington WA 6109, Australia
Geotechnical Services Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
Global Trust Certification (UK) Limited (ii)
Global X-Ray & Testing Corporation
112 East Service Road, Morgan City, LA 70380, United States
Global X-Ray Holdings, Inc.
112 East Service Road, Morgan City, LA 70380, United States
Guangzhou Intertek Quality Testing Technology Co., Ltd.
Room 301, No.8 Baoying East Road, Huangpu District, Guangzhou, China
H.P. White Laboratory Inc.
3114 Scarboro Road, Street, MD 21154, United States
Hawks Acquisition Holding, Inc.
545 E. Algonquin Road, Arlington Heights, Illinois 60005, United States
Hi-Tech Holdings, Inc. (i)
CT Corporation System, 1200 S.Pine Island Road, Plantation, FL 33324, United States
Hi-Tech Testing Service, Inc.
CT Corporation System, 1999 Bryan Street Suite 900, Dallas, TX 75201, United States
ILI Infodisk, Incorporated.
205 W. Wacker Dr, Suite 1800, Chicago, IL 60606, United States
ILI Limited
Inspection Services (US), LLC (xv)
237 Stuart Road, Amelia, LA 70340, United States
International Cargo Services, Inc. (i)
c/o CT Corp, 8550 United Plaza Blvd, Baton Rouge, LA 70809, United States
International Inspection Services Limited
33/37 Athol Street, Douglas, IM1 1LB, Isle of Man
Intertek (Mauritius) Limited
2 Palmerston Road, Phoenix, Mauritius
Intertek (Schweiz) AG
TechCenter, Kaegenstrasse 18, 4153 Reinach, Switzerland
Intertek Algeria Ltd EURL
Zone urbaine Garidi 1, N°C7/C8, Bâtiment F1, 1er étage Local N°1, 16051, Kouba, Wilaya d’Alger, Algeria
Intertek Arabia A.C.
Office no. 213, Olaya Business Center, Al-Khobar, 31952, Saudi Arabia
Intertek Argentina Certificaciones S.A. (iii)
Cerrito 1136 3rd floor CF, Ciudad Autónoma de Buenos Aires, C1010AAX, Argentina
Intertek Aruba N.V.
Lago Heights Straat 28A, San Nicolas, Aruba
42
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
IIntertek Asset Integrity Management, Inc.
25025 I-45, Suite 300, Spring, TX 77380, United States
Intertek ATI SRL
266-268 Calea Rahovei Street, Building 61, 1st Floor, Sector 5, Bucharest, Romania
Intertek Azeri Limited
2236 Mirza Davud Str., Xatai District, Baku, AZ 1026, Azerbaijan
Intertek BA EOOD
24A Akad. Metodi Popov Str., Floor 5, Sofia, 1113, Bulgaria
Intertek Bangladesh Limited
Phoenix Tower, Plot–407 (3rd Floor), Tejgaon I/A, Dhaka, Bangladesh
Intertek Belgium NV
Kruisschansweg 11, 2040 Antwerp, Belgium
Intertek Burkina Faso Ltd Sarl
Lot 113, Parcelle no. PE 1/2, Secteur no.11. Ouagadougou, 02 BP 5984, Burkina Faso
Intertek C&T Australia Holdings PTY Ltd (i)
544 Bickley Road, Maddington, WA 6109, Australia
Intertek C&T Australia Pty Ltd
Level 3, 235 St Georges Terrace, Perth WA 6000, Australia
Intertek Caleb Brett (Uruguay) S.A. (xiv)
Cerrito 507, 4th Floor, Of. 46 and 47, Montevideo, 11000, Uruguay
Intertek Caleb Brett Chile S.A.
Avenida Las Condes N° 11287 Torre A, oficina 301 A Las Condes, Santiago, Chile
Intertek Caleb Brett El Salvador S.A. de C.V.
Recinto Industrial de RASA zona industrial de Acajutla, Sonsonate, El Salvador
Intertek Caleb Brett Germany GmbH
Georgswerder Bogen 3, D-21109 Hamburg, Germany
Intertek Caleb Brett Panama, Inc.
Zona Procesadora para la Exportacion de Albrook, Building 6, Ancon Panama, Panama
Intertek Caleb Brett Venezuela C.A.
Av. Mohedano, Centro Gerencial Mohedano, piso 4, oficina 4-C, La Castellana, Municipio Chacao, Venezuela
Intertek Canada Newco Limited
1829-32nd Avenue, Lachine, QC H8T 3J1, Canada
Intertek Capacitacion Chile Spa
Avenida Las Condes N° 11287 Torre A, oficina 301 A Las Condes, Santiago, Chile
Intertek Capital Resources Limited
Intertek Certification AB
Torshamnsgatan 43, Box 1103, Kista, S-164 22, Sweden
Intertek Certification AS
Leif Weldings vei 8, 3208 Sandefjord, Norway
Intertek Certification GmbH
Marie-Bernays-Ring 19a, 41199 Monchengladbach, Germany
Intertek Certification Japan Limited
Nihonbashi North Square, 1-4-2, Nihonbashi – Horidomecho, Chuo-ku, Tokyo, 103-0012, Japan
Intertek Certification Limited
Intertek Colombia S.A.
Calle 127A No. 53A-45, Oficina 1103, Bogotá, Colombia
Intertek Commodities Mozambique Lda (xvi)
Rua 1233, NR 72 R/C, Distrito Urbano 1, Maputo, Mozambique
Intertek Consulting & Training (UK) Limited (ii)
Northpoint Aberdeen Science & Energy Park, Exploration Drive, Bridge of Don, Aberdeen, AB23 8HZ,
United Kingdom
Intertek Consulting & Training (USA), Inc. (i)
25025 I-45, Suite 300, Spring, TX 77380, United States
Intertek Consulting & Training Egypt (ii)
46 B Street #7, Maadi, Cairo, Egypt
Intertek Consumer Goods GmbH
Würzburger Strasse 152, 90766 Fürth, Germany
Intertek Curacao N.V.
Barendslaan #3, Rio Canario Willemstad, Curacao, Netherlands Antilles
Intertek de Guatemala SA
46 Calle 21-53 Zona 12, Expobodega 46, Edificio 10, Guatemala Ciudad, Guatemala
Intertek de Nicaragua S.A.
Zona Franca Astro KM 47, Carretera Tipitapa Masaya, Nave 20, Managua, Nicaragua
Intertek Denmark A/S
Dokhavnsvej 3, 4400 Kalundborg, Denmark
Intertek Deutschland GmbH
Stangenstrasse 1, 70771 Leinfelden-Echterdingen, Germany
Intertek DIC A/S
Buen 12, 2, 6000 Kolding, Denmark
Intertek do Brasil Inspecoes Ltda
Av Eng. Augusto Barata s/n, Alamoa, Santos, SP, CEP11095-650, Brazil
Intertek Egypt for Testing Services
2nd Floor, Block 13001, Piece 15, Street 13, First Industrial Zone, (Beside Abou Ghali Motors), Elobour City,
Cairo, Egypt
Intertek Engineering Service Shanghai Limited
Room 301-6, No.14, Lane 1401, Jiangchang Road, Jing ’an District, Shanghai, China
Intertek Evaluate AB
Torshamnsgatan 43, Box 1103, Kista, S-164 22, Sweden
43
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Intertek Finance No. 2 Ltd (x)
Intertek Finland OY
Teknoublevardi 3-5, FI-01530 Vantaa, Finland
Intertek Food Services GmbH
Olof-Palme-Strasse 8, 28719 Bremen, Germany
Intertek France SAS
ZAC Ecopark 2, 27400, Heudebouville, France
Intertek Fujairah FZC
P.O. Box 1307, Fujairah, United Arab Emirates
Intertek Genalysis (Zambia) Limited
Plot No 25/26 Nkwazi House, Nkwazi and Cha Cha Cha Roads, PO Box 31014, Lusaka, Zambia
Intertek Genalysis Madagascar SA
Saint Denis Terrain II, Parcel 2 Ambatofotsy, Ampandrianomby, Madagascar
Intertek Genalysis South Africa Pty Ltd
544 Bickley Road, Maddington WA 6109, Australia
Intertek Ghana Limited
1st Floor Gian, Towers Office, Number 2 Community, Gian Towers Tema, Accra, Accra Metropolitan,
P.O. BOX GP 199, Ghana
Intertek Global (Iraq) Limited
Intertek Global Limited
26 New Street, St Helier, Jersey, JE2 3RA, Jersey
Intertek Health Sciences Inc. (v)
2233 Argentia Road, Suite # 201, Mississauga, ON L5N 2X7, Canada
Intertek Holding Deutschland GmbH
Stangenstrasse 1, 70771 Leinfelden-Echterdingen, Germany
Intertek Holdings France SAS
ZAC Ecopark 2, 27400 Heudebouville, France
Intertek Holdings Italia SRL (xvi)
Via Guido Miglioli 2/A, Cernusco sul Naviglio, 20063, Milano, Italy
Intertek Holdings Nederland B.V.
Leerlooierstraat 135, 3194AB Hoogvliet, Rotterdam, The Netherlands
Intertek Holdings Norge AS
Oljevegen 2, Tananger, 4056, Norway
Intertek Ibérica Spain, S.L.
Alameda Recalde, 27-5, 48009, Bilbao, Vizcaya, Spain
Intertek India Private Limited
E-20, Block B1, Mohan Co-operative Industrial Area, Mathura Road, New Delhi, 110044, India
Intertek Industrial Services GmbH
Marie-Bernays-Ring 19a, 41199 Monchengladbach, Germany
44
Intertek Industry and Certification Services (Thailand) Limited
539/2 Gypsum Metropolitan Tower, 11C Fl., Sri-Ayudhaya Road, Tanon – Phayathai Subdistrict, Khet
Ratchathewi, Bangkok, 10400, Thailand
Intertek Industry Ghana Ltd
House Number 1, North Industrial Area, Klan, Anoma Ntuu Link, Accra, PO BOX 533, Ghana
Intertek Industry Holdings (Pty) Ltd
53 Phillip Engelbrecht Drive, Woodhill Office Park Building 2, 1st Floor Unit 8B Meyersdal, Gauteng, 1448,
South Africa
Intertek Industry Holdings Mozambique Limitada
Cidade de Maputo, Distrito Kampfumo, Baiiro Sommerchield, Avenida 1301 n˚97, Mozambique
Intertek Industry Services (S) Pte Ltd
2 International Business Park, #10-09/10, The Strategy, 609930, Singapore
Intertek Industry Services Brasil Ltda
Alameda Rio Negro, 161, room 702 – 7th floor, Alphaville, Barueri-SP, 06454-000-SP, Brazil
Intertek Industry Services de Argentina S.A.
Cerrito 1136, 2nd floor CF, Ciudad Autonoma de Buenos Aires, C1010AAX, Argentina
Intertek Industry Services Japan Limited
Nihonbashi North Square, 1-4-2, Nihonbashi – Horidomecho, Chuo-ku, Tokyo, 103-0012, Japan
Intertek Industry Services Romania Srl
266-268 Calea Rahovei Street, Building 61, 1st Floor, Sector 5, Bucharest, Romania
Intertek Industry WLL
Office # 24, Building 400, Road 3207, Mahooz, Block 332, Manama, Bahrain
Intertek Inspection Services Ltd
2561 Avenue Georges V, Montreal-Est, QC H1L 6S4, Canada
Intertek Inspection Services Scandinavia AS
Leif Weldings vei 8, 3208 Sandefjord, Norway
Intertek Inspection Services UK Limited
Intertek International Gabon SARL
Quartier Montagne Sainte – Immeuble Dumez, 2éme étage, Libreville, B.P: 13312, Gabon
Intertek International Guinee S.A.R.L. (i)
Conakry Republique de Guinee, Compte Bancaire: 52481.369.10 0 (SGBG), Conakry Guinea
Intertek International Inc.
8600 NW 17th Street, Suite 100, Miami, FL 33126, United States
Intertek International Kazakhstan, LLC
Building 2A, Abay street, Atyrau City, 060002, Kazakhstan
Intertek International Limited
Intertek International Ltd Egypt
69, Road 161, Intersection with Road 104, Ground Floor, Maadi, Cairo, Egypt
Intertek International Nederland BV
Leerlooierstraat 135, 3194AB Hoogvliet, Rotterdam, The Netherlands
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Intertek International Niger SARL
BP 2769, 2nd Floor Lot 792 Block Q, Independance Boulevard, Rue GM-20, Niger
Intertek International Suriname N.V.
Prins Hendrikstraat 49, Paramaribo, Suriname
Intertek International Tanzania Limited
Minazini Street, Kilwa Road 5, Dar es Salaam, United Republic of Tanzania
Intertek Italia SpA
Via Guido Miglioli 2/A, Cernusco sul Naviglio, 20063, Milano, Italy
Intertek Japan K.K.
Pier City Shibaura Building, 4F, 3-18-1, Kaigan, Minato-ku, Tokyo, 108-0022, Japan
Intertek Kalite Servisleri Limited Sirketi
Cevizli Mah. Tansel Cad. No: 12-18, Maltepe, Istanbul, Turkey
Intertek Korea Industry Service Ltd
Yeouido Dept Bldg #916, 36-2, Yeouido-Dong, Youngdeungpo-Gu, Seoul, 150-749, South Korea
Intertek Labtest S.A.R.L
7 Boulevard La Resistance IMM La Comanav Etage 7, Casablanca, 20300, Morocco
Intertek Malta Limited
24A Level 2, Flagstone Wharf, Marsa MRS 1932, Malta
Intertek Management Services (Australia) Pty Ltd
544 Bickley Road, Maddington WA 6109, Australia
Intertek Med SARL AU
Zone Franche Logistique Tanger Med, Plateau Bureaux 4, Lot 130, Tanger, Morocco
Intertek Medical Notified Body AB
Torshamnsgatan 43, Box 1103, Kista, S-164 22, Sweden
Intertek Medical Notified Body UK Ltd
Intertek Minerals Limited
Osu Badu Street, Airport Residential Area, Accra, Greater Accra, CP8196, Ghana
Intertek Myanmar Limited
Classic Strand Cono, No.693/701, Room (4-A), (4th Floor), Merchant Road, Pabedan Township, Yangon, Myanmar
Intertek Nederland B.V.
Leerlooierstraat 135, 3194 AB Hoogvliet, Rotterdam, The Netherlands
Intertek Nominees Limited
Intertek OCA France SARL
Route Industrielle – Centre Routier, 76600, Gonfreville L’Orcher, France
Intertek Overseas Holdings Limited
Intertek Overseas Holdings, Eritrea Limited (i)
3rd Floor, Warsay Avenue, P.O. Box 4588, Asmara, Eritrea
Intertek Pakistan (Private) Limited
Intertek House, Plot No.1-5/11-A, Sector-5, Korangi Industrial Area, Karachi, Pakistan
Intertek Poland sp.z.o.o.
Cyprysowa 23 B, 02-265, Warsaw, Poland
Intertek Polychemlab B.V.
Koolwaterstofstraat 1, 6161 RA, Geleen, The Netherlands
Intertek Portugal, Unipessoal Lda (xvi)
Rua Antero de Quental, 221-Sala 102, 4455-586, Perafita-Matosinhos, Portugal
Intertek Quality Services Ltd (i)
Intertek Resource Solutions (Trinidad) Limited
#91-92 Union Road, Marabella, Trinidad, Trinidad and Tobago
Intertek Resource Solutions, Inc.
25025 I-45, Suite 300, Spring, TX 77380, United States
Intertek Rus JSC
Proektiruemyi 4062-I, 6-25- Pomeshch, 115432, Moscow, Russian Federation
Intertek S.R.O
Sokolovská 131/86, Karlín, Praha 8, 186 00, Czech Republic
Intertek Saudi Arabia Limited
Southern Olaya Center, Office No. 213, Makkah Al-Mukaramah Street, P.O. Box 2526, Al-Khobar, 31952,
Saudi Arabia
Intertek ScanBi Diagnostics AB
Box 166, Alnarp, SE-230 53, Sweden
Intertek Secretaries Limited (i)
Intertek Semko AB
Torshamnsgatan 43, Box 1103, Kista, S-164 22, Sweden
Intertek Services (Pty) Ltd
1st Floor, Building D, Stoneridge Office Park, 8 Greenstone Place, Greenstone, Gauteng, Johannesburg, 1609,
South Africa
Intertek Servicios C.A. (i)
Res. San Ignacio, Calle San Ignacio de Loyola con Avenue Francisco de Miranda, Local 3, Chacao, Caracas,
Venezuela
Intertek Statius N.V.
Man ‘O’ War #B3, Oranjestad, St. Eustatius, Netherlands Antilles
Intertek Surveying Services (USA), LLC (xv)
16441 Space Center Boulevard, Suite D-100, Houston, TX 77058, United States
Intertek Surveying Services UK Limited
Averon House 3 Dail Nan Rocas, Teaninich Industrial Estate, Alness, IV17 0PH, United Kingdom
Intertek Technical Inspections Canada Inc. (iv)
1829-32nd Avenue, Lachine, Quebec, H8T 3J1, Canada
Intertek Technical Services PTY Limited
544 Bickley Road, Maddington WA 6109, Australia
45
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Intertek Technical Testing and Analysis Private Limited Company
Bole Sub City Woreda 04, House Number 064/A/, Abune Yosef, Addis Ababa, 4260, Ethiopia
Intertek Testing & Certification Limited
Intertek Testing and Inspection Services UK Limited
Intertek Testing Management Ltd
Intertek Testing Services (Australia) Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
Intertek Testing Services (Cambodia) Company Limited
13AC, Street 337, Sangkat Boeung Kak I, Khan Tuol Kork, Phnom Penh, Cambodia
Intertek Testing Services (East Africa) (Pty) Limited
5th Floor Charter House, 13 Brand Road Glenwood, Kwa-Zulu Natal, 4001, South Africa
Intertek Testing Services (Fiji) Pte Limited
c/o BDO, Level 10, FNPF Place, 343 Victoria Parade, Suva, Fiji
Intertek Testing Services (Guangzhou) Ltd
No.3-1, Road 1, Xinhaixin Street, Huangge, Nansha District, Guangzhou, Guangdong, China
Intertek Testing Services (ITS) Canada Ltd
105-9000 Bill Fox Way, Burnaby BC V5J 5J3, Canada
Intertek Testing Services (Japan) K. K.
Nihonbashi North Square, 1-4-2, Nihonbashi – Horidomecho, Chuo-ku, Tokyo, 103-0012, Japan
Intertek Testing Services (NZ) Limited
3 Kepa Road, Ruakaka, Northland, 0171, New Zealand
Intertek Testing Services (Shanghai FTZ) Co., Ltd
7th Floor, Building No. 51, 1089 North Qinzhou Road, Xuhui District, Shanghai, China
Intertek Testing Services (Singapore) Pte Ltd.
3 Irving Road #05-01 to 05, Tai Seng Centre, 369522, Singapore
Intertek Testing Services (Thailand) Limited
1285/5 Prachachuen Road, Wong-Sawang Sub-District, Bangsue District, Bangkok, 10800, Thailand
Intertek Testing Services Argentina S.A.
Cerrito 1136, piso 3ro, Frente. Ciudad Autonoma de Buenos Aires, (C1010AAX), Argentina
Intertek Testing Services Bolivia S.A.
Calle Chichapi # 2125, Santa Cruz, de la Sierra, Bolivia
Intertek Testing Services Caleb Brett Egypt Limited
Intertek Testing Services Chongqing Co., Limited
1F/6F Building 3 No.5, East Gangcheng Loop Road, Chongqing China
Intertek Testing Services de Honduras, S.A.
Edificio la Pradera, locales 5 y 6. 1-2 Ave, 1 calle, Puerto Cortes, Barrio el Centro, Honduras
Intertek Testing Services De Mexico, S.A. De C.V. (iii)
Poniente 134, No 660 Industrial Vallejo, Mexico DF CP, 02300, Mexico
46
Intertek Testing Services Environmental Laboratories Inc. (i)
Lexis Document Services, 15 East North Street, Dover, DE 19901, United States
Intertek Testing Services NA Limited
1829-32nd Avenue, Lachine QC H8T 3J1, Canada
Intertek Testing Services NA Sweden AB (i)
c/o Intertek Semko AB, Box 1103, Kista, 16422, Sweden
Intertek Testing Services Namibia (Proprietary) Limited
15th Floor, Frans Indongo Gardens, Dr Frans Indongo Street, Windhoek, Namibia
Intertek Testing Services Pacific Limited
2/F, Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong
Intertek Testing Services Peru S.A.
Jr. Mariscal Jose de la Mar No. 200 Urb., Res. El Pino, San Luis, Lima, Peru
Intertek Testing Services Philippines, Inc.
Intertek Building, 2307 Chino Roces Avenue Extension, Metro Manila, Makati City, 1231, Philippines
Intertek Testing Services Taiwan Limited
8F No. 423 Ruiguang Rd, Neihu District, Taipei, 11492, Taiwan
Intertek Testing Services Tianjin Limited
1-6/F, Block B, No. 7 Guiyuan Road, Hi-Tech Pack, Tianjin, China
Intertek Testing Services Zhejiang Ltd
Building No.2, Juanhu Science and Technology Innovation Park, No. 500 East Shuiyueting Road, Haining City,
Zhejiang Province, China
Intertek Timor, S.A. (i)
Hotel Timor, Colmera, Vera Cruz, Dili, Timor-Leste
Intertek Training Malaysia Sdn. Bhd.
6-L12-01, Level 12, Tower 2, Menara PGRM, No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia
Intertek Trinidad Limited
#91-92 Union Road, Marabella, Trinidad and Tobago
Intertek UK Holdings Limited
Intertek USA Finance LLC
c/o CSC Services of Nevada, Inc., 2215-B Renaissance Dr, Las Vegas NV 89919, United States
Intertek Vietnam Limited
3rd & 4th floor, Au Viet Building, No. 01 Le Duc Tho Str., Mai Dich Ward, Cau Giay District, Hanoi City, Vietnam
Intertek West Africa SARL
Immeuble Centre Pavillon, 4eme étage, Rue Paul Langevin, Marcory, Zone 4, Abidjan, Côte d’Ivoire
Intertek West Lab AS
Oljevegen 2, 4056 Tananger, Norway
Intertek Genalysis SI Limited (i)
c/o Baoro & Associates, Top Floor, Y. Sato Building, Point Cruz, Honiara, Solomon Islands
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
ITS (PNG) Limited
Section 27 Allotment 27, Voco Point, Lae, Morobe Province, Papua New Guinea
ITS (Subic Bay), Inc.
Area 8 – 10, Lots 11/12 Boton Wharf, Argonaut Highway, Subic Bay, Freeport Zone, Olongapo City, Philippines
ITS Guinea SARLU
Resident Almamya 103 Community De Kaloum, Conakry, Guinea
ITS Hong Kong NA, Limited (i)
2/F Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong
ITS Labtest Bangladesh Limited
Phoenix Tower, Plot – 407 (3rd Floor), Tejgaon I/A, Dhaka, Bangladesh
ITS Testing Holdings Canada Limited
9000 Bill Fox Way, Suite 105, Burnaby, British Columbia, V5J 5J3, Canada
ITS Testing Services (UK) Limited
ITS Testing Services Co. LLC
Ras Tanura KSA, PO Box 216, 31941, Saudi Arabia
JLA Brasil Laboratório de Análises de Alimentos S.A.
Rua Carlos Tosin, 860, sala 1, Distrito Industrial, Distrito Industrial, Estado de São Paulo, Brazil
KJ Tech Services GmbH (xii)
Pallaswiesenstraße 168, 64293, Darmstadt, Germany
Laboratorio Fermi S.A. de C.V.
Jacarandes #15, San Clemente, Alvaro Obregon, Ciudad de Mexico, C.P. 01740, Mexico
Laboratorios ABC Química, Investigación y Análisis, S.A. de C.V. (xiii)
Jacarandas #19, San Clemente, Alvaro Obregón, Ciudad de Mexico, C.P. 01740, Mexico
Laboratory Services International Rotterdam B.V.
Pittsburghstraat 9, 3047 BL, Rotterdam, The Netherlands
Labtest International Inc.
545 E. Algonquin Road, Arlington Heights, IL 60005, United States
Lintec Testing Services Limited
Louisiana Grain Services, Inc. (i)
c/o CT Corp, 8550 United Plaza Blvd, Baton Rouge LA 70809, United States
Mace Land Company, Inc.
3114 Scarboro Road, Street, MD 21154, United States
Management Systems International Limited (i)
Materials Testing Lab, Inc.
145 Sherwood Avenue, Farmingdale NY 11735, United States
McPhar Geoservices (Philippines) Inc.
Building 7 & 8 Philcrest 1 Compound, Km23 West Service Road, Bo. Cupang, Muntinlupa City, Philippines
Melbourn Scientific Limited
Melbourn Scientific, Saxon Way, Melbourn, Hertfordshire, Royston, SG8 6DN, United Kingdom
Metoc Limited (iii)
Midwest Engineering Services, Inc. (i)
CT Corporation System, 8020 Excelsior Dr., Suite 200, Madison WI 53717, United States
Moody (Shanghai) Consulting Co., Ltd
Room 403, No.5-6, Lane 1218, Wanrong Road, Jing ‘an District, Shanghai, China
Moody International (Holdings) Limited (viii)
Moody International (India) Private Limited
E-20, Block B1, Mohan Co-operative Industrial Area, Mathura Road, New Delhi, 110044, India
Moody International (Russia) Limited (ii)
Moody International Certification India Limited
E-20, Block B1, Mohan Co-operative Industrial Area, Mathura Road, New Delhi, 110044, India
Moody International Holdings LLC (xv)
237 Stuart Road, Amelia, LA 70340, United States
MT Group LLC
145 Sherwood Avenue, Farmingdale NY 11735, United States
MT Operating of New Jersey, LLC (xv)
145 Sherwood Avenue, Farmingdale NY 11735, United States
MT Operating of New York, LLC (xv)
145 Sherwood Avenue, Farmingdale NY 11735, United States
N T A Monitor Limited
NDT Services Limited
Northern Territory Environmental Laboratories Pty Ltd (i)
544 Bickley Road, Maddington WA 6109, Australia
NTA Monitor (M) Sdn Bhd
No. 18-B, Jalan Kancil off Jalan Pudu, 55100 Kuala Lumpur, Wilayah Persekutuan, Malaysia
Paulsen & Bayes-Davy Ltd
2/F, Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong
Petroleum Services of Union Lab Sdn. Bhd.
Suite C-7-10 (B), Level 9, Block C, UE3 Corporate Offices, Menara Uncang Emas, No 85 Jalan Loke Yew,
Taman Miharja, 55200 Kuala Lumpur, Malaysia
Pittsburgh Testing Laboratory Inc. (i)
PSI, 850 Poplar Street, Pittsburgh PA 15220, United States
PlayerLync Holdings, Inc.
1209 Orange Street, Wilmington, New Castle DE 19801, United States
PlayerLync LLC
1209 Orange Street, Wilmington, New Castle DE 19801, United States
Profesionales Contables en Asesoría Empresarial y de Ingenieria S.A.S.
Calle 120, No. 45A – 32, Bogota, Colombia
Professional Service Industries (Canada) Inc. (i)
200 Bay Street, Suite 3800, Royal Bank Plaza, South Tower, Toronto ON M5J 2J7, Canada
47
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Professional Service Industries, Inc.
545 E. Algonquin Road, Arlington Heights, IL 60005, United States
Professional Service Industries Holdings, Inc.
545 E. Algonquin Road, Arlington Heights, IL 60005, United States
PSI Acquisitions, Inc.
545 E. Algonquin Road, Arlington Heights, IL 60005, United States
PT. Moody Technical Services
Graha STR 3rd floor, Suite#302, Jl. Ampera Raya No. 11, Jakarta, 12550, Indonesia
PT. RCG Moody
Graha STR 3rd floor, Suite#302, Jl. Ampera Raya No. 11, Jakarta, 12550, Indonesia
PT. SAI Global Indonesia
Graha Iskandarsyah Lantai 4, Jalan Iskandarsyah Raya Nomor 66-C, Kebayoran Baru, Jakarta, 12160, Indonesia
QMI-SAI Canada Limited
20 Carlson Court, Suite 200, Toronto ON M9W 7K6, Canada
RCG Moody International Uruguay S.A.
Cerrito 507, 4th Floor, Off. 46, 47, Montevideo 11000, Uruguay
SAI Global Assurance Learning Limited (ii)
SAI Global Assurance Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
SAI Global Assurance Services Limited
SAI Global Assurance Services sp. z o.o.
Oszczepników 4, 02-633 Warszawa, Poland
SAI Global Australia (China) Pty Limited (i)
544 Bickley Road, Maddington WA 6109, Australia
SAI Global Australia Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
SAI Global Certification Services Pty Limited (i)
544 Bickley Road, Maddington WA 6109, Australia
SAI Global CIS UK Limited
SAI Global GmbH (ii)
Friedrich-Ebert-Anlage 36, 60325 Frankfurt am Main, Germany
SAI Global GP (xv)
205 W. Wacker Dr, Suite 1800, Chicago, IL 60606, United States
SAI Global, Inc.
615 South DuPont Highway, Dover, DE 19901, United States
SAI Global Italia S.R.L.
Corso Tazzoli 235/3, CAP 10137, Turin, Italy
48
SAI Global Japan Co. Ltd.
MK Bldg. 8F, 2-28-22 Shiba, Minato-ku Tokyo, Japan
SAI Global Korea Co., Ltd
(Dangjeong-dong, Intertek Building) 3, Gongdan-ro 160beon-gil, Gunpo-si, Gyeonggi-do, Seoul, South Korea
SAI Global Mexico, S. de R.L. de C.V (xvi)
Poniente 134, No 660 Industrial Vallejo, Mexico DF CP, 02300, Mexico
SAI Global Pty Limited
544 Bickley Road, Maddington WA 6109, Australia
SAI Global SARL
29 Rue du Pont, 92200 Neuilly-sur-Seine, France
SAI Global UK Holdings Limited
SAI Global US Holdings, Inc.
205 W. Wacker Dr, Suite 1800, Chicago, IL 60606, United States
Schindler & Associates (L.C.) (i) (xv)
24900 Pitkin Road, Suite 200, The Woodlands TX 77386, United States
Shanghai Orient Intertek Testing Services Company Limited
Room 304\401,No 1\4\5, Lane 2028, Changzhong Road, Jing’an District, Shanghai, China
Shanghai Tianxiao Investment Consultancy Company Limited
Room 502, No.5-6, 1218 WanRong Road, Shanghai 200070, China
Technical Company for Testing and Conformity Services & Systems LLC
Gates No. 1/2/6, Building 73/ Area 903, Karadah, Al Rusafa, Baghdad, Iraq
Testing Holdings Sweden AB
Torshamnsgatan 43, Box 1103, Kista, S-164 22, Sweden
Tradegood.com International Limited
2/F, Garment Centre, 576 Castle Peak Road, Kowloon, Hong Kong
Van Sluys & Bayet NV
Kruisschansweg 11, 2040 Antwerp, Belgium
White Land Company, Inc.
3114 Scarboro Road, Street, MD 21154, United States
Wilson Inspection X-Ray Services, Inc. (i)
Michael E Wilson, 6010 Edgewater Dr., Corpus Christi TX 78412, United States
Wisco SE Asia PTE Limited (i)
3 Irving Road #05-01 to 05, Tai Seng Centre, 369522, Singapore
Youngever Holdings Ltd
Luna Tower, Waterfront Drive, Road Town, Tortola, VG 1110, British Virgin Islands
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report 23 Principal Group companies Continued
Related undertakings where the effective interest is less than 100%
Caleb Brett Abu Dhabi LLC (xviii) (xix) (49.0%)
CB UAE (Private) Ltd, c/o Al Nahiya Group, PO Box 3728, Abu Dhabi, United Arab Emirates
Clean Energy Associates, LLC (xv) (85.0%)
16192 Coastal Highway, Lewes, DE, 19958, United States
Clean Energy Associates Limited (85.0%)
302-308 Hennessy Road, Room 2003, Wanchai, Hong Kong
Clean Energy Associates (China) Limited (85.0%)
Room 159, Building 4th, No. 2118 Guanghua Road, Minhang District, Shanghai, China
Controle Analítico Análises Técnicas Ltda. (80.0%)
281 Rua Leão XIII, Vila dos Remédios, Osasco, São Paulo, 06298-180, Brazil
CQC-SAI Management Technologies (Beijing) Co., Ltd (70%)
Level 21, Suite 2101-2103A, Beijing AVIC Building, No 10B, East 3rd Ring Road, Chaoyang District,
Beijing 100022, China
Euro Mechanical Instrument Services LLC (xix) (49.0%)
PO Box 46153, Abu Dhabi, United Arab Emirates
International Inspection Services LLC (xviii) (70.0%)
PO Box 193, Al Hamriyah, Muscat, PC 131, Oman
Intertek (Qeshm Island) Limited (51.0%)
Unit 107, Goldis Building, Valiasr Boulevard, Qeshm Island, Islamic Republic of Iran
Intertek Angola LDA (99.0%)
282 Rua Amilcar Cabral no.147 2nd floor, Apartment Z, Luanda, Angola
Intertek Burkina Faso SAS (xix) (49%)
Lot 113, Parcelle no. PE 1/2, Secteur no.11. Ouagagougou, 02 BP 5984, Burkina Faso
Intertek Caleb Brett Tzn Limited (75%)
Plot number 5, Minizani str.-Opposite Roman Catholic Church, Kilwa Road, Kurasini Temeke, Dar Es Salaam,
15109, United Republic of Tanzania
Intertek Certification International Sdn. Bhd. (xix) (40%)
6-L12-01, Level 12, Tower 2, Menara PGRM, No. 6 & 8 Jalan Pudu Ulu, Cheras, 56100 Kuala Lumpur, Malaysia
Intertek ETL SEMKO KOREA Limited (90.0%)
5F, Intertek building, Gongdan-ro, 160beon-gil 3, Gunpo-si, Gyeonggi-do, 15845, South Korea
Intertek Geronimo JV Limited (70.0%)
1, North Industrial Area, Klan Street, Accra, Ghana
Intertek Global International LLC (xv) (xix) (49%)
Building 242, Office No.3, C-Ring Road, Doha, PO Box 47146, Qatar
Intertek GM Testing Service Zhuhai Co., Ltd (70.0%)
6F of Research and Development Building, Guangdong-Macau TCM Park Commercial Service Center, 2682 Huan
Dao Bei Road, Hengqin New Area, Zhuhai, Guangdong China
Intertek Industry Services (PTY) LTD (69.9%)
Woodhill Office Park Building 2, First Floor Unit 8b, 53 Phillip Engelbrecht Drive, Meyersdal Gauteng, 1448,
South Africa
Intertek Industry Services Colombia Limited (99.0%)
Calle 127A No. 53A-45, Oficina 1103, Bogotá, Colombia
Intertek Inspection (Malaysia) Sdn. Bhd. (xi) (xix) (40%)
D-28-3, Level 28, Menara Suezcap 1, No. 2 Jalan Kerinchi, Gerbang Kerinchi Lestari, 59200 Kuala Lumpur,
Malaysia
Intertek Kimsco Co., Ltd (50.0%)
9F, Hansan Building, 115, Seosomun-ro, Jung-gu, Seoul, 04515, South Korea
Intertek Lanka (Private) Limited (70.0%)
Intertek House, No: 282, Kaduwela Road, Battaramulla, Sri Lanka
Intertek Libya Technical Services and Consultations Company Spa (65.0%)
P.O Box 3788, Hay Alandalus, Gargaresh, Tripoli, Libya
Intertek Life Bridge (Shanghai) Testing Services Co., Ltd (80.0%)
4F, No.6 BLD, Lane 1218, Wanrong Road, Shanghai 200070, China
Intertek Ltd (99.9%)
Borco Administration Bldg, West Sunrise Highway, Freeport, Grand Bahama, The Bahamas
Intertek – QNP LLP (xvii) (51.0%)
Building 2A, Abay street, Atyrau City, 060002, Kazakhstan
Intertek Robotic Laboratories Pty Limited (50.0%)
544 Bickley Road, Maddington WA 6109, Australia
Intertek South Africa Holdings (Pty) Ltd (75.0%)
5th Floor, Charter House, 13 Brand Road, Glenwood, Kwazulu-Natal, South Africa
Intertek Test Hizmetleri Anonim Sirketi (85.0%)
Merkez Mahallesi, Sanayi Cad. No.23, Altindag Plaza, Yenibosna-34197, Istanbul, Turkey
Intertek Testing Services (South Africa) (Pty) Ltd (xi) (xix) (49.5%)
5th Floor, Charter House, 13 Brand Road, Glenwood, Durban, South Africa
Intertek Testing Services Changzhou Ltd (85.0%)
Room 201, No 4 Floor, Changzhou Testing Industrial Park, Tanning District, Changzhou, China
Intertek Testing Services Korea Limited (50.0%)
1st Fl., Aju Digital Tower, 284-56, Seongsu-dong 2-ga, Seongdong-gu, Seoul 133-120, South Korea
Intertek Testing Services Nigeria Limited (65.9%)
73B Marine Road, Apapa GRA, Apapa, Lagos, 102272, Nigeria
Intertek Testing Services Sichuan Co., Ltd (90.0%)
No 1, Jiuxiang Blvd, Pharmacy Industry Park, Luzhou National High Technology District, Sichuan, China
Intertek Testing Services Wuxi Ltd (70.0%)
1/F, No.8 Fubei Road, Xishan Economic Development Zone, Wuxi, Jiangsu, 214101, China
ITS Caleb Brett Deniz Survey A S (50.0%)
Ulus Mah. Oz Topuz cad. no.32, Besiktas, Istanbul, 34340, Turkey
49
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report Associates
Moody International Certification Ltd (40.0%)
53, Nautic, Triq l-Ortolan, San Gwann, SGN 1943, Malta
Moody Certification Maroc SARL(30.0%)
28, Rue de Provins, 2 eme etage, Casablanca, Morocco
Moody International SA (35.0%)
4 Rue Des Brasseurs, Zone 3 Abidjan, Côte d’Ivoire
Dormant.
In Liquidation/Strike off requested.
(i)
(ii)
(iii) Ownership held in class A and B shares
(iv) Ownership held in class A and E shares.
(v)
Ownership held in class A, B, C, D and E shares.
(vi) Ownership held in class A, B, C, D, E and F shares.
(vii) Ownership held in ordinary and ordinary-A shares.
(viii) Ownership held in ordinary, ordinary-A, ordinary-B and deferred shares.
(ix) Ownership held in ordinary and preference shares.
(x)
Ownership held in ordinary and redeemable shares.
(xi) Ownership held in ordinary and redeemable preference shares.
(xii) Ownership held in No.1, No.2.1 and No.2.2 shares.
(xiii) Ownership held in class I Series B shares and class II Series B shares
(xiv) Ownership held in ordinary bearer shares.
(xv) Ownership held in membership units.
(xvi) Ownership held in quota capital shares.
(xvii) Ownership held in charter fund capital.
(xviii) The Group obtains 99% of the economic benefit of the company.
(xix)
Intertek has de facto control of the company.
23 Principal Group companies Continued
ITS Testing Services (M) Sdn Bhd (74.0%)
Unit 30-01, Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No.8, Jalan Kerinchi,
59200 Kuala Lumpur, Malaysia
ITS Testing Services Holdings (M) Sdn Bhd (xix) (49.0%)
Unit 30-01 Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi,
59200 Kuala Lumpur, Malaysia
Moody International Angola Ltda (i) (xvi) (78.6%)
Rua de Macau, Edifico ex Edil Apto 1, Res de Chao Esq. C.P 215, Cabinda, Angola
Moody International Bangladesh Limited (99.9%)
House 6, Road 17/A, Block E, Ground Floor, Banani, Dhaka, 1213, Bangladesh
Moody International Holdings Chile Ltda (99.0%)
Avenida Las Condes N° 11287 Torre A, oficina 301 A Las Condes, Santiago, Chile
Moody International Lanka (Private) Ltd (i) (99.9%)
No.5, St Albans Place, Colombo-4, Sri Lanka
Moody International Philippines, Inc. (i) (92.5%)
Intertek Building, 2310 Chino Roces Avenue Extension, Metro Manila, Makati City, 1231, Philippines
PT Citrabuana Indoloka (50.0%)
Jl. Raya Bogor KM 28, RT/RW. 04/07, Kel. Pekayon, Kec. Pasar Rebo, Jakarta Timur, 13710, Indonesia
PT. Global Assurance Services (ii) (99.8%)
Graha Iskandarsyah Raya No.66-C, Jakarta, 12160, Indonesia
PT. Intertek Utama Services (xix) (49.0%)
Jl. Raya Bogor KM. 28, RT/RW. 04/07, Kel. Pekayon, Kec. Pasar Rebo, Jakarta Timur, 13710, Indonesia
Qatar Calibration Services LLC (xix) (49.0%)
Petrotec, PO Box 16069, 8th Floor, Toyota Tower, Doha, Qatar
RCG Moody International de Venezuela S.A. (i) (99.0%)
Res Morgana, p_4, #04, Av.Andres Bello, Fco de Miranda, Los Polos Grandes, Caracas, Venezuela
SAI Global (Cyprus) Holdings Limited (60.0%)
1 Lampousas Street, 1095 Nicosia, Cyprus
SAI Global Eurasia LLC (60.0%)
59 pomeshch. 17-n kom., litera a, 7, nab. Reki Volkovki, 192102, St. Petersburg, Russian Federation
Shanghai Moody Management & Technical Services Co. Ltd (i) (90.0%)
Room 225, No. 14 at Lane No. 1700 Luo Shan Road, Shanghai, China
Société SAI Global Tunisia SARL (75.0%)
67, Avenue Alain Savary, Cite les Jardins 2 Bloc A, Tunis, Tunisia
Société Tunisienne Intertek Caleb Brett SARL (51.0%)
67 rue Ech-Chem, Tunis, 1002, Tunisia
The Wine Warehouse (Chepstow) Management Company Limited (75%)
50
Intertek Group plcAnnual Report & Accounts 2023Notes to the financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report
Intertek Group plc – Company balance sheet
As at 31 December
Fixed assets
Investments in subsidiary undertakings
Current assets
Debtors due within one year
Cash at bank and in hand
Creditors due within one year
Overdrafts and loans
Other creditors
Net current assets
Total assets less current liabilities
Net assets
Capital and reserves
Called up share capital
Share premium
Profit and loss reserves
Total shareholders’ funds
The profit for the financial year was £193.9m (2022: £142.9m).
The financial statements on pages 51 to 56 were approved by the Board on 4 March 2024 and were signed on its behalf by:
André Lacroix
Chief Executive Officer
Company number: 04267576
Colm Deasy
Chief Financial Officer
51
Notes
2023
£m
2022
£m
(E)
360.2
354.3
(F)
(G)
439.2
439.2
–
439.2
(2.4)
(40.3)
(42.7)
396.5
756.7
387.4
387.4
0.2
387.6
–
( 7.4)
( 7.4)
380.2
734.5
756.7
734.5
(H)
(H)
(H)
1.6
257.8
497.3
756.7
1.6
257.8
475.1
734.5
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Intertek Group plc – Company statement of changes in equity
At 1 January 2022
Total comprehensive income for the year
Profit
Total comprehensive income for the year
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to the owners of the Company
Dividends paid
Purchase of own shares
Tax paid on Share Awards vested
Equity-settled transactions
Total contributions by and distributions to the owners of the Company
At 31 December 2022
At 1 January 2023
Total comprehensive income for the year
Profit
Total comprehensive income for the year
Transactions with owners of the Company recognised directly in equity
Contributions by and distributions to the owners of the Company
Dividends paid
Purchase of own shares
Tax paid on Share Awards vested
Equity-settled transactions
Total contributions by and distributions to the owners of the Company
At 31 December 2023
52
Notes
Share capital
£m
Share
premium
£m
Profit and
loss reserves
£m
Total
equity
£m
1.6
257.8
491.6
751.0
(B)
(D)
(E)
(B)
(D)
(E)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1.6
257.8
142.9
142.9
142.9
142.9
(170.6)
(2.3)
(4.0)
17.5
(159.4)
475.1
(170.6)
(2.3)
(4.0)
17.5
(159.4)
734.5
1.6
257.8
475.1
734.5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
193.9
193.9
193.9
193.9
(176.3)
(11.6)
(5.0)
21.2
(176.3)
(11.6)
(5.0)
21.2
(171.7)
(171.7)
1.6
257.8
497.3
756.7
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Notes to the Company financial statements
(A) Accounting policies – Company
The following accounting policies have been applied consistently in dealing with items which are considered
material in relation to the Company’s financial statements.
Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (‘FRS 101’) in conformity with the requirements of the Companies Act 2006.
These financial statements have been prepared on a historical cost basis. The Company continues to adopt
the going concern basis of accounting in preparing these financial statements. Further detail on going concern
can be found in note 1 to the Group financial statements.
In preparing these financial statements, the Company applies the recognition, measurement and disclosure
requirements of UK-adopted International Accounting Standards (‘Adopted IFRSs’), but makes amendments
where necessary in order to comply with Companies Act 2006 and has set out below where advantage of
the FRS 101 disclosure exemptions has been taken.
These financial statements are presented in sterling, which is the functional currency of the Company.
All information presented in sterling has been rounded to the nearest £0.1m.
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect
of the following disclosures:
• a cash flow statement and related notes;
• comparative period reconciliations for share capital;
• disclosures in respect of transactions with wholly owned subsidiaries;
• disclosures in respect of capital management;
• the effects of new, but not yet effective, IFRSs;
• an additional balance sheet for the beginning of the earliest comparative period following the retrospective
change in accounting policy;
• disclosures in respect of the compensation of Key Management Personnel; and
• certain disclosures required by IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7
Financial Instrument Disclosures on the basis that the consolidated financial statements include the
equivalent disclosures.
As the consolidated financial statements include the equivalent disclosures, the Company has also taken the
exemptions under FRS 101 available in respect of IFRS 2 Share-Based Payment in respect of Group-settled
share-based payments.
The Company proposes to continue to adopt the reduced disclosure framework of FRS 101 in its next
financial statements.
Under Section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its
own profit and loss account.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods
presented in these financial statements.
Foreign currencies
Transactions in foreign currencies are recorded to the Company’s functional currency, sterling, using the rate
of exchange ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are
translated into sterling at the rates of exchange prevailing at the balance sheet date. All foreign exchange
differences are taken to the profit and loss account.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and
loss account except to the extent that it relates to items recognised directly in equity or other comprehensive
income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. The following temporary differences
are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect
neither accounting nor taxable profit other than in a business combination; and differences relating to
investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilised.
Dividends on shares presented within shareholders’ funds
Dividend income is recognised in profit or loss on the date that the Company’s right to receive payment is
established. Dividends unpaid at the balance sheet date are only recognised as a liability at that date to
the extent that they are appropriately authorised and are no longer at the discretion of the Company.
Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less any provisions for impairment.
Intercompany financial guarantees
When the Company enters into financial guarantee contracts to guarantee the indebtedness of other
companies in the Group, upon the adoption of IFRS17 effective from 1 January 2023, the Company has elected
to recognise these under IFRS9. On this basis, the Company recognises these guarantees at fair value upon
recognition, on a contract by contract basis. Subsequent remeasurement is performed at each reporting period
and recorded at he higher of the loss allowance under expected credit loss and the initial fair value less any
income recognised.
Share-based payments
Intertek Group plc runs a share ownership programme that allows Group employees to acquire shares in the
Company. Details of the share schemes are given in note 17 of the Group financial statements.
53
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report (A) Accounting policies – Company Continued
Investments impairment review
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and
subsequently measured at cost less any accumulated impairment losses. Estimates are used in determining
the level of investment that will not, in the opinion of the Directors, be recoverable.
Recoverability of receivables
Amounts owed by Group undertakings are recognised initially at the value of the invoice or loan raised and
subsequently at the amounts considered recoverable (amortised cost). Estimates are used in determining
the level of receivables that will not, in the opinion of the Directors, be collected. The Company applies the
simplified approach permitted by IFRS 9, which requires the use of the lifetime expected loss provision for
all receivables. The provision calculations are based on a review of all receivables to see if there are specific
circumstances which would render the receivable irrecoverable and therefore require a specific provision.
Significant new accounting policies and standards
No significant new accounting policies or standards were adopted in the year ending 2023.
(D) Dividends
The aggregate amount of dividends comprises:
Final dividend paid in respect of prior year but not recognised as a liability
in that year
Interim dividends paid in respect of the current year
Aggregate amount of dividends paid in the financial year
2023
£m
2022
£m
115.5
60.8
176.3
115.5
55.1
170.6
The aggregate amount of dividends proposed and recognised as liabilities as at 31 December 2023 is £nil
(2022: £nil). The aggregate amount of dividends proposed and not recognised as liabilities as at 31 December
2023 is £120.2m (2022: £115.5m).
(E) Investment in subsidiary undertakings
(B) Profit and loss account
Amounts paid to the Company’s auditors and their associates in respect of services to the Company, other than
the audit of the Company’s financial statements, have not been disclosed as the information is required instead
to be disclosed on a consolidated basis. The Company does not have any employees (2022: nil).
Details of the remuneration of the Directors are set out in the Remuneration report in Book two, pages 78
to 103.
Cost and net book value
At 1 January
Additions due to share-based payments
Recharges of share-based payments to subsidiaries
At 31 December
2023
£m
2022
£m
354.3
21.2
(15.3)
360.2
347.3
17.5
(10.5)
354.3
(C) Use of judgements and estimates
In the application of the Company’s accounting policies, the Directors are required to make judgements,
estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised, if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
The assumptions which have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities are outlined below. There are no critical estimates which have a significant risk of
causing a material adjustment to the carrying amount of assets and liabilities in the next financial year.
Key estimations and uncertainties
There are no critical accounting judgements or estimates.
54
The Company has made Share Awards to the employees of its directly and indirectly owned subsidiaries, and as
such, the Company recognises an increase in the cost of investment in subsidiaries of £21.2m (2022: £17.5m).
Details of the principal operating subsidiaries are set out in note 23 to the Group financial statements.
The Company had two direct subsidiary undertakings at 31 December 2023: Intertek Testing Services
Holdings Limited and Intertek Holdings Limited, both of which are holding companies, are incorporated in the
United Kingdom and registered in England and Wales. All interests are in the ordinary share capital and all are
wholly owned. In the opinion of the Directors, the value of the investments in subsidiary undertakings is not
less than the amount at which the investments are stated in the balance sheet.
There is no impairment to the carrying value of these investments (2022: £nil).
Intertek Group plcAnnual Report & Accounts 2023Notes to the Company financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report (F) Debtors due within one year
Amounts owed by Group undertakings – due within one year
Total debtors
2023
£m
439.2
439.2
2022
£m
387.4
387.4
(I) Related party transactions
Details of related party transactions are set out in note 21 of the Group financial statements.
Listed below are subsidiaries controlled and consolidated by the Group, where the Directors have taken the
exemption from having an audit of its financial statements for the year ended 31 December 2023. This
exemption is taken in accordance with Section 479A of the Companies Act.
The amounts owed by Group undertakings are unsecured, have no fixed date of repayment and are repayable
on demand. A mixture of the amounts due are interest bearing and interest free.
(G) Creditors due within one year
Trade and other creditors
Income tax payable
Amounts owed to Group undertakings
Total creditors
2023
£m
3.1
3.1
34.1
40.3
2022
£m
3.7
3.5
0.2
7.4
The amounts owed to Group undertakings are unsecured, have no fixed date of repayment and are repayable
on demand. A mixture of the amounts due are interest bearing and interest free.
(H) Statement of changes in equity
Details of share capital are set out in note 15 and details of share-based payments are set out in note 17 to
the Group financial statements.
A profit and loss account for Intertek Group plc has not been presented as permitted by Section 408 of the
Companies Act 2006. The profit for the financial year, before dividends paid to shareholders of £176.3m
(2022: £170.6m), was £193.9m (2022: £142.9m) which was mainly in respect of dividend income in relation
to 2023.
The Company has sufficient distributable reserves to pay the 2023 final dividend and the anticipated 2024
interim dividend. When required, the Company can receive additional dividends from its subsidiaries to further
increase distributable reserves.
The Group settled in cash the tax element of the Share Awards vested in 2023 amounting to £5.6m
(2022: £4.4m) of which the Company settled £5.0m (2022: £4.0m).
During the year ended 31 December 2023, the Company purchased, through its Employee Benefit Trust,
278,500 (2022: 45,000) of its own shares with an aggregate nominal value of £2,785 (2022: £450) for
£11.6m (2022: £2.3m) which was charged to profit and loss reserves.
Company Name
Company registration
Intertek Nominees Limited
Moody International (Holdings) Limited
Intertek UK Holdings Limited
Intertek Holdings Limited
Intertek USD Finance Ltd
Intertek Finance No. 2 Ltd
Intertek Capital Resources Limited
Intertek Testing Services Holdings Limited
RCG-Moody International Limited
Intertek Overseas Holdings Limited
Intertek Testing Management Ltd
Lintec Testing Services Limited
Intertek Testing & Certification Limited
Metoc Limited
NDT Services Limited
Melbourn Scientific Limited
04958152
04843153
00373440
04604778
07598700
08072121
03888392
03227453
00312030
00506349
00948153
03339548
03272281
01489779
01997290
02358299
Intertek Testing and Inspection Services UK Limited
08351820
Intertek Certification Limited
Alchemy Systems Training Limited
Check Safety First Limited
Checkpoint Solutions Ltd
SAI Global Assurance Services Ltd
SAI Global CIS UK Limited
ILI Limited
02075885
07448398
04748066
09844787
03690660
07428352
05605930
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Intertek Group plcAnnual Report & Accounts 2023Notes to the Company financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report (I) Related party transactions continued
Company Name
Company registration
The Wine Warehouse (Chepstow) Management
Company Limited
05747149
Intertek Testing Services Caleb Brett Egypt Limited
00542087
Intertek Global (Iraq) Limited
Intertek Medical Notified Body UK Limited
09358012
13964915
(J) Contingent liabilities
The Company is a member of a group of UK companies that are part of a composite banking cross-guarantee
arrangement. This is a joint and several guarantee given by all members of the Intertek UK cash pool,
guaranteeing the total gross liability position of the pool which was £10.8m at 31 December 2023
(2022: £0.8m).
From time to time, in the normal course of business, the Company may give guarantees in respect of certain
liabilities of subsidiary undertakings. As at the 31 December 2023 the value of these guarantees is £nil.
(K) Subsequent events
Details of post-balance sheet events relevant to the Company and the Group are given in note 18 of the Group
financial statements.
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Intertek Group plcAnnual Report & Accounts 2023Notes to the Company financial statements ContinuedBook two: Sustainability ReportBook three: Financial ReportBook one: Strategic Report Independent Auditors’ Report to the members of Intertek Group plc
Report on the audit of the financial statements
Opinion
In our opinion:
• Intertek Group plc’s group financial statements and company financial statements (the “financial statements”)
give a true and fair view of the state of the group’s and of the company’s affairs as at 31 December 2023 and
of the group’s and company’s profit and the group’s cash flows for the year then ended;
• the group financial statements have been properly prepared in accordance with UK-adopted international
Our audit approach
Overview
Audit scope
• We performed full scope audit procedures over 54 legal entities and specific audit procedures on a further
two entities, covering 23 territories in total.
• Taken together, the entities over which audit work was performed accounted for 73% of the group’s revenue
and 74% of the group’s statutory profit before tax.
accounting standards;
• the company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced
Disclosure Framework”, and applicable law); and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Key audit matters
• Impairment of goodwill (group)
• Valuation of defined benefit pension scheme liabilities (group)
• Impairment of investments in subsidiary undertakings (parent)
We have audited the financial statements, included within the Annual Report & Accounts (the “Annual Report”),
which comprise: the consolidated statement of financial position and company balance sheet as at
31 December 2023; the consolidated income statement, consolidated statement of comprehensive income,
consolidated statement of cash flows, consolidated statement of changes in equity and company statement
of changes in equity for the year then ended; and the notes to the financial statements, comprising material
accounting policy information and other explanatory information.
Materiality
• Overall group materiality: £20,800,000 (2022: £20,800,000) based
on approximately 5% of profit before tax.
• Overall company materiality: £6,357,000 (2022: £7,400,000) based
on approximately 1% of total assets.
• Performance materiality: £15,000,000 (2022: £15,000,000) (group)
and £4,700,000 (2022: £5,500,000) (company).
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and
applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities
for the audit of the financial statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion..
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed
public interest entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical
Standard were not provided.
Other than those disclosed in the Audit Committee report within the Directors’ report, we have provided
no non-audit services to the company or its controlled undertakings in the period under audit.
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in
the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in
the audit of the financial statements of the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) identified by the auditors, including those which had the
greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
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Key audit matter
How our audit addressed the key audit matter
Key audit matter
How our audit addressed the key audit matter
Impairment of goodwill (group)
Refer to the Audit Committee report in Book two,
page 77 and to note 9 in the financial statements.
The group had £1,385.8 million of goodwill
recognised on the balance sheet at 31 December
2023. The potential impairment of goodwill is
dependent on future cash flows of the underlying
Cash Generating Units (“CGUs”) and there is a
risk that, if these cash flows are not sufficient
to support the carrying value, the assets may
be impaired. Having considered the industry
environments and business performance, we
consider that the CGUs for Business Assurance,
Caleb Brett, Building & Construction and
Chemicals & Pharma represent an elevated risk
of impairment, requiring greater audit effort.
Accounting standards require management
to perform an annual assessment of
the carrying value of goodwill.
As this assessment is based on the future value
in use, and a significant amount of value is
based on the value to perpetuity of the CGUs,
future cash flows must be estimated, which can
be highly judgemental and could significantly
impact the carrying value of the assets.
58
We evaluated management’s cash flow
forecasts and understood the process by which
they were determined and approved. This
included confirming that the forecasts were
consistent with the latest Board approved
budgets and checking the methodology and
mathematical accuracy of the underlying
calculations, with no exceptions identified.
We evaluated the inputs included in the value
in use calculations and challenged the key
assumptions for the higher risk CGUs – Business
Assurance, Caleb Brett, Building & Construction
and Chemicals & Pharma, by obtaining evidence
including in respect of the following:
• the growth rates used in the cash flow forecasts
by comparing them with historical results, external
forecasts and our understanding of the business;
• using our internal valuation experts to evaluate
the discount rate by comparing the cost of capital
for the group with comparable organisations; and
• the long-term growth rates by comparing these
with publicly available market data on projected
growth rates in key territories such as China,
the United States and the United Kingdom.
We performed sensitivity analyses around these
assumptions. We also challenged the extent to
which climate change considerations had been
reflected, as appropriate, in management’s
impairment assessment process.
Having ascertained the extent of change in
those assumptions that either individually or
collectively would be required for an impairment
to arise, we considered the likelihood of such
a movement occurring to be unlikely.
Our testing did not identify any impairment and
confirmed that it would require significant downside
changes before any impairment would be triggered.
In addition, we assessed the appropriateness
of the CGUs used in the impairment
assessment and the related disclosures and
concluded that these were appropriate.
Valuation of defined benefit pension
scheme liabilities (group)
Refer to the Audit Committee report in Book two,
page 77 and to note 16 in the financial statements.
We utilised our internal actuarial experts to evaluate
whether the assumptions and methodology used in
calculating the pension liabilities were reasonable, by:
The group had two major pension schemes in
the United Kingdom and Switzerland. The United
Kingdom scheme has a net surplus of £21.8
million and the Switzerland scheme has a net
deficit of £4.8 million. They were recognised
on the balance sheet at 31 December 2023.
The present value of funded defined benefit
obligations for the United Kingdom scheme
is £90 million and £19.2 million for the
Switzerland Scheme at 31 December 2023.
• Assessing whether salary increases and
mortality rate assumptions were reasonable
based on the consideration of the specifics
of each plan, pension plans of similar maturity
to the group’s and industry benchmarks;
• Evaluating the consistency of the discount and
inflation rate assumptions with our internally
developed benchmarks based on national data; and
• Reviewing the methodology and
calculations prepared by external actuaries
to assess their appropriateness and the
consistency of the assumptions used.
The valuation of pension liabilities involves the
exercise of judgement and technical expertise in
choosing appropriate actuarial assumptions such
as the discount rate, inflation level, mortality rates
and salary increases. Based on these considerations,
we assessed this to be an elevated audit risk.
Based on our procedures, we concluded
that the key assumptions utilised lay within
acceptable ranges and that the methodology was
appropriate. We assessed the related disclosures
included in the group financial statements and
concluded that these were appropriate.
Management engaged external actuarial
experts to assist them in selecting appropriate
assumptions and to calculate the liabilities.
The methodologies and assumptions utilised
are judgemental and could significantly impact
the magnitude of the liabilities recognised.
Impairment of investments in
subsidiary undertakings (parent)
Refer to note E in the Company financial statements.
The parent company had £360.2 million of
investments in subsidiary undertakings. There
is a risk that the performance of the subsidiary
undertakings is not sufficient to support the
carrying value and the assets may be impaired.
Management has performed an assessment of
impairment indicators with none being identified.
Although this was not an area of heightened risk
in respect of the Company financial statements,
it utilised more senior audit team time and hence
has been included as a Key Audit Matter.
We evaluated management’s assessment
of impairment indicators and considered the
consistency with other audit procedures performed.
We concluded management’s view that no
impairment indicators exist was reasonable.
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Independent Auditors’ Report Continued
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on
the financial statements as a whole, taking into account the structure of the group and the company, the
accounting processes and controls, and the industry in which they operate.
The impact of climate risk on our audit
As part of our audit we have made enquiries of management to understand the process they adopted to
assess the extent of the potential impact of climate risk on the financial statements and support the
disclosures made in relation to climate risk within the Strategic Report and Sustainability Report.
In addition to enquiries with management, we also read the Carbon Disclosure Project public submission made
by the group.
We assessed the completeness of management’s climate risk assessment by: reading external reporting made
by management including the Carbon Disclosure Project submissions and making management aware of any
internal inconsistencies in their climate reporting; and challenging the consistency of management’s climate
impact assessment with internal board minutes, including whether the time horizons management have used
take account of the relevant aspects of climate change such as transition risks.
The Board has made commitments to get to net zero carbon emissions by 2050.
Management has assessed that there is no material impact on the financial reporting judgement and estimates
arising from their considerations, consistent with their assessment of no material impact of climate-related
policies directly on the business.
Using our knowledge of the business, we evaluated management’s risk assessment, its estimates as set out in
note 1 of the financial statements and resulting disclosures where significant. In particular we have considered
how climate risk would impact the assumptions made in the forecasts prepared by management used in their
impairment analyses, as referenced in the key audit matter in relation to the impairment of goodwill above.
We also considered the consistency of the disclosures in relation to climate change within the Strategic Report
and the Sustainability Report with the financial statements and our knowledge obtained from the audit.
Our procedures did not identify any material impact in the context of our audit of the financial statements as
a whole, or our key audit matters, for the year ended 31 December 2023.
The group is now split into five reporting segments: Consumer Products, Corporate Assurance, Health and
Safety, Industry and Infrastructure and World of Energy, which changed from the previous three reporting
segments during the year. The group’s operations are spread across over 100 territories and approximately
600 legal entities. The results are not consolidated at a territory or regional level, so we determined that the
most appropriate level at which to scope our audit was the legal entity level.
When determining our scope, the key financial measure used was profit before tax. Due to the disaggregation
of the group’s results across the various entities, we identified two individually financially significant legal
entities, one within China and one within the United States. As a result, we instructed our component teams
to perform audits of the complete financial information of these entities.
We considered the territories in which PwC is appointed statutory auditor. Of these, 16 territories (including
China) accounted for a substantial proportion of external profit, and we therefore focused our considerations
on these territories. Within these territories, we then excluded any legal entities with no external balances,
such as intermediate holding companies, and those entities with highly immaterial revenue. This left 39 legal
entities (including the one financially significant legal entity in China) for which we instructed our local teams
to perform audits of the complete financial information for the purpose of the group audit. In addition, we
performed full scope audit procedures over two head office legal entities.
In certain territories, notably the United States and Canada, there is no statutory audit requirement and so we
considered whether procedures needed to be performed to supplement our coverage. We selected seven of
the largest entities in the United States and Canada for full scope audits (including the one financially
significant legal entity in the United States), representing those with the largest contribution to group profit.
We identified a further two legal entities in Brazil and Saudi Arabia over which we instructed specific audit
procedures to be performed over revenue and receivables to supplement coverage over these key financial
statement line items.
In addition, there were six legal entities in three territories where a non-PwC network audit firm is the
appointed statutory auditor. We instructed them to perform audits of the complete financial information
for the purpose of the group audit.
In total we performed procedures relating to 56 legal entities in 23 territories, which together accounted
for 73% of the group’s revenue and 74% of the group’s profit before tax.
This, together with additional procedures performed at the group level (including audit procedures over
business acquisitions, impairment assessments, defined benefit pension schemes, tax and consolidation
adjustments), gave us the evidence we needed for our opinion on the financial statements as a whole.
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Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds
for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit
and the nature, timing and extent of our audit procedures on the individual financial statement line items and
disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial
statements as a whole.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the group’s and the company’s ability to continue to adopt the
going concern basis of accounting included:
• An assessment of management’s base case and severe but plausible scenarios, challenging the
key assumptions;
• Considering the group’s available financing, including related covenants, and maturity profile to assess
Based on our professional judgement, we determined materiality for the financial statements as a whole
as follows:
liquidity through the assessment period;
• Testing the mathematical integrity of the forecasts and the models and reconciled these to Board
approved budgets; and
• Performing our own independent sensitivity analysis to assess appropriate downside scenarios.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the group’s and the company’s ability
to continue as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as
to the group’s and the company’s ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the directors’ statement in the financial statements
about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in
the relevant sections of this report.
Financial statements – group
Financial statements – company
Overall materiality
£20,800,000 (2022: £20,800,000).
£6,357,000 (2022: £7,400,000).
How we determined it
approximately 5% of profit before tax
approximately 1% of total assets
Rationale for benchmark
applied
We believe that profit before tax is the
primary measure used by the
shareholders and users of the financial
statements in assessing the
performance of the Group. This is a
generally accepted benchmark.
These are a single set of company
accounts for an entity which has no
external revenue and takes advantage
of the exemption offered under S408
of Companies Act 2006 not to present
its income statement in its financial
statements, which are presented
alongside the group financial
statements within the Annual Report.
As a result, the determination of
materiality was based on the total
assets of this non-trading holding
company within the group.
For each component in the scope of our group audit, we allocated a materiality that is less than our overall
group materiality. The range of materiality allocated across components was £1.3 million and £8.2 million.
Certain components were audited to a local statutory audit materiality that was also less than our overall
group materiality.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and the nature and extent of our testing of account balances,
classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality
was 75% (2022: 75%) of overall materiality, amounting to £15,000,000 (2022: £15,000,000) for the group
financial statements and £4,700,000 (2022: £5,500,000) for the company financial statements.
In determining the performance materiality, we considered a number of factors – the history of misstatements,
risk assessment and aggregation risk and the effectiveness of controls – and concluded that an amount in the
middle of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit
above £1,000,000 (group audit) (2022: £1,000,000) and £317,800 (company audit) (2022: £1,000,000) as
well as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons.
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Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial
statements and our auditors’ report thereon. The directors are responsible for the other information.
Our opinion on the financial statements does not cover the other information and, accordingly, we do not
express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of
assurance thereon.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term
viability and that part of the corporate governance statement relating to the company’s compliance with the
provisions of the UK Corporate Governance Code specified for our review. Our additional responsibilities with
respect to the corporate governance statement as other information are described in the Reporting on other
information section of this report.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an
apparent material inconsistency or material misstatement, we are required to perform procedures to conclude
whether there is a material misstatement of the financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report based on these
responsibilities.
With respect to the Strategic report and Directors’ report, we also considered whether the disclosures required
by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report
certain opinions and matters as described below.
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic
report and Directors’ report for the year ended 31 December 2023 is consistent with the financial statements
and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the group and company and their environment obtained
in the course of the audit, we did not identify any material misstatements in the Strategic report and
Directors’ report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of
the corporate governance statement is materially consistent with the financial statements and our knowledge
obtained during the audit, and we have nothing material to add or draw attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to
identify emerging risks and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt
the going concern basis of accounting in preparing them, and their identification of any material
uncertainties to the group’s and company’s ability to continue to do so over a period of at least twelve
months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the group’s and company’s prospects, the period this
assessment covers and why the period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the company will be able to
continue in operation and meet its liabilities as they fall due over the period of its assessment, including any
related disclosures drawing attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the group and company was
substantially less in scope than an audit and only consisted of making inquiries and considering the directors’
process supporting their statement; checking that the statement is in alignment with the relevant provisions
of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial
statements and our knowledge and understanding of the group and company and their environment obtained
in the course of the audit.
Directors’ Remuneration
In our opinion, the part of the Remuneration Committee report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the corporate governance statement is materially consistent with the financial statements and
our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for the members to assess the group’s and
company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and
internal control systems; and
• The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to
the company’s compliance with the Code does not properly disclose a departure from a relevant provision of
the Code specified under the Listing Rules for review by the auditors.
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Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ responsibilities, the directors are responsible for the
preparation of the financial statements in accordance with the applicable framework and for being satisfied
that they give a true and fair view. The directors are also responsible for such internal control as they
determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the group or
the company or to cease operations, or have no realistic alternative but to do so.
• Enquiring of the group’s staff in tax and compliance functions to identify any instances of non-compliance
with laws and regulations;
• Obtaining and understanding the results of whistleblowing procedures;
• Enquiring of the group’s Head of Internal Audit and reviewing internal audit reports; and
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of
instances of non-compliance with laws and regulations that are not closely related to events and transactions
reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by,
for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly
using data auditing techniques. However, it typically involves selecting a limited number of items for testing,
rather than testing complete populations. We will often seek to target particular items for testing based on
their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion
about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s
website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body
in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not,
in giving these opinions, accept or assume responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance
with laws and regulations related to fraud, anti-bribery and corruption laws, and we considered the extent to
which non-compliance might have a material effect on the financial statements. We also considered those laws
and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and
relevant tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation
of the financial statements (including the risk of override of controls), and determined that the principal risks
were related to fraudulent journal entries to manipulate the financial performance and management bias in
significant accounting estimates in order to achieve management incentive scheme targets. The group
engagement team shared this risk assessment with the component auditors so that they could include
appropriate audit procedures in response to such risks in their work. Audit procedures performed by the
group engagement team and/or component auditors included:
• Enquiring of management, those charged with governance and the group’s legal counsel around actual and
potential fraud and non-compliance with laws and regulations;
• Auditing the risk of management override of controls and the risk of fraud in revenue recognition, including
through testing journal entries and other adjustments for appropriateness, testing accounting estimates,
testing accrued income and evaluating the business rationale of significant transactions outside the normal
course of business;
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Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the company, or returns adequate for our audit have
not been received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• the company financial statements and the part of the Remuneration Committee report to be audited are
not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 25 May 2016
to audit the financial statements for the year ended 31 December 2016 and subsequent financial periods.
The period of total uninterrupted engagement is eight years, covering the years ended 31 December 2016 to
31 December 2023.
Other matter
In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule
4.1.14R, these financial statements will form part of the ESEF-prepared annual financial report filed on the
National Storage Mechanism of the Financial Conduct Authority in accordance with the ESEF Regulatory
Technical Standard (‘ESEF RTS’). This auditors’ report provides no assurance over whether the annual financial
report has been prepared using the single electronic format specified in the ESEF RTS.
Graham Parsons
(Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
4 March 2024
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Introduction
In the reporting of financial information, the Directors have adopted various Alternative Performance Measures
(‘APMs’). These measures are not defined by UK-adopted international accounting standards. As adjusted
results and measures include the benefits of certain Separately Disclosed Items (‘SDIs’) (as detailed in note 3),
but exclude significant costs related to those items, they should not be regarded as a complete picture of the
Group’s financial performance, which is presented on the face of the income statement under total results.
The exclusion of these items may result in adjusted operating profit being materially higher or lower than
total operating profit. In particular, where significant impairments, restructuring charges and legal costs are
excluded in any year, adjusted operating profit will be higher than total operating profit.
Purpose
The Directors believe that APMs assist the user of the Annual Report & Accounts in providing useful
information around trends, performance and the position of the Group between reporting periods and across
operating divisions by adjusting for non-recurring factors assessing the total results of the Group, as well
as aiding users in understanding the Group’s performance. APMs are commonly used by management for
performance review, budget setting and forecasting across the Group.
Some of the metrics shown for the Group are translated at constant exchange rates. Constant rates compares
both 2023 and 2022 figures at the average and year-end exchange rates for 2023, in order to remove the
impact of currency translation from the Group’s growth figures.
Changes to APMs
There have been no significant changes to the definitions of existing APMs or the APMs used by the Group in
the year.
Reconciliations
Reconciliations between statutory and adjusted measures can be found in the Financial review in Book one,
page 30.
APM
Closest equivalent statutory measure
Adjustments to reconcile adjusted to statutory
Definition and purpose
Like-for-like revenue (‘LFL’)
No direct equivalent
Acquisitions and business disposals
Adjusted free cash flow
Net cash flows from operating
activities
Includes cash flows from acquisition and sale of PPE, repayment of lease
liabilities and interest received.
Excludes the impact of cash flow SDIs.
Including acquisitions following their 12-month anniversary of ownership
and removing the historical contribution of any business disposals/closures.
Excluding acquisitions and disposals demonstrates the Group’s
performance for comparable operations year-on-year by removing any
inflation of revenue in the current year or prior year contributed from new
acquisitions or disposals.
Free cash flow includes net cash flows from operating activities and certain
cash flows from investing activities and the repayment of lease liabilities.
The following items are excluded: all other cash flows from financing
activities. This measure reflects the cash available to shareholders. This
is a key performance metric for the incentive scheme.
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APM
Closest equivalent statutory measure
Adjustments to reconcile adjusted to statutory
Definition and purpose
Adjusted operating profit*
Statutory operating profit*
Separately disclosed items (see note 3) including amortisation of acquisition
intangibles; impairment of goodwill and other assets; the profit or loss on
disposals of businesses or other significant non-current assets; costs
of acquiring and integrating acquisitions; the cost of any fundamental
restructuring; material claims and settlements; significant recycling of
amounts from equity to the income statement; and unrealised market
or fair value gains or losses on financial assets or liabilities, including
contingent consideration.
Adjusted operating profit is a key measure of the Group’s performance and
is based on operating profit before the impact of SDIs. These items relate
to income or costs that are excluded from adjusted operating profit due to
their nature or size to provide readers with a clear and consistent view of
the business performance of the Group and its operating divisions on a
year-on-year basis.
Adjusted operating margin
Statutory operating margin
As per adjusted operating profit.
Adjusted diluted earnings
per share
Statutory diluted earnings
per share
SDIs after tax (see note 3) including amortisation of acquisition intangibles;
impairment of goodwill and other assets; the profit or loss on disposals of
businesses or other significant non-current assets; costs of acquiring and
integrating acquisitions; the cost of any fundamental restructuring; material
claims and settlements; significant recycling of amounts from equity to the
income statement; and unrealised market or fair value gains or losses on
financial assets or liabilities, including contingent consideration.
Adjusted operating profit divided by revenue, both before the impact of
SDIs. These items relate to income or costs that are excluded from adjusted
operating profit due to their nature or size to provide readers with a clear
and consistent view of the business performance of the Group and its
operating divisions on a year-on-year basis.
This metric relates to profit after tax before SDIs divided by the weighted
average number of ordinary shares in issue during the financial year
adjusted for the effects of potentially dilutive shares. This is a key
performance metric for the incentive scheme.
Adjusted cash flow
from operations
Cash flow from operations
Cash flows relating to separately disclosed items, as identified in the cash
flow statement.
This excludes the impact of the cash flows relating to SDIs to reflect the
cash flows available during recurring operations.
Adjusted net financing costs
Statutory net finance costs
Changes in fair value of contingent consideration.
Adjusted net financing costs exclude income or costs that, due to their
nature or size, provide the readers with a clear and consistent view of the
business performance of the Group on a year-on-year basis.
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APM
Closest equivalent statutory measure
Adjustments to reconcile adjusted to statutory
Definition and purpose
Adjusted profit after tax
Statutory profit after tax
As per adjusted profit and additionally any separately disclosed tax related
items are excluded.
ROIC (based on adjusted
profit)
No direct equivalent
Adjusted operating profit is the profit measure used in calculating ROIC.
Net financial debt
No direct equivalent
Total net debt less lease liabilities.
Adjusted EBITDA
Statutory EBITDA
Earnings before interest, tax, depreciation and amortisation and excluding
SDIs (see note 3) including amortisation of acquisition intangibles;
impairment of goodwill and other assets; the profit or loss on disposals of
businesses or other significant non-current assets; costs of acquiring and
integrating acquisitions; the cost of any fundamental restructuring; material
claims and settlements; significant recycling of amounts from equity to the
income statement; and unrealised market or fair value gains or losses on
financial assets or liabilities, including contingent consideration.
* Operating profit is presented on the consolidated income statement. It is not defined per IFRS, however, is a generally accepted profit measure.
Adjusted profit after tax is based on profit after tax before the impact of
SDIs. These items relate to income or costs that are excluded from adjusted
operating profit due to their nature or size to provide readers with a clear
and consistent view of the business performance of the Group and its
operating divisions on a year-on-year basis.
Adjusted profit after tax (as defined above) divided by invested capital. This
is a key performance metric for the incentive scheme.
This measure shows the non-operational financial debt of the Group,
excluding lease liabilities.
This metric removes the impact of both SDIs and interest, tax, depreciation
and amortisation to provide a clear and consistent view of the business
performance of the Group year-on-year at a level before the impact of some
non-cash items and financing costs.
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Shareholders and corporate information
Shareholders’ enquiries
Any shareholders with enquiries relating to their shareholding should, in the first instance, contact our
Registrar, EQ (‘Equiniti’), using the telephone number or the address below.
Investor relations
E: investor@intertek.com
T: +44 (0) 20 7396 3400
Electronic shareholders communications
Instead of receiving paper copies, shareholders can elect to receive communications by email each
time the Company distributes documents. This can be done by registering for email communications at
www.shareview.co.uk. In the event that you change your mind or require a paper version of any document
in the future, please contact the Registrar.
Registrars
EQ
Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA
T: +44 (0) 371 384 2653*
*
Lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday, excluding bank holidays in England and Wales.
Please use the country code when calling from outside the UK.
Access to EQ Shareview allows shareholders to view details about their shareholdings, submit a proxy vote for
shareholders meetings and notify a change of address. In addition to this, shareholders can complete dividend
mandates online which facilitates the payment of dividends directly into a nominated bank account.
ShareGift
If you have a small shareholding which is uneconomical to sell, you may want to consider donating it to
ShareGift, a share donation charity. Details of the scheme are available from:
ShareGift at www.sharegift.org
T: +44 (0) 20 7930 3737
Share price information
Information on the Company’s share price is available at www.intertek.com.
Financial calendar
Financial year-end
Full year results announced
Annual General Meeting and Trading Update
Ex-dividend date for final dividend
Record date for final dividend
Final dividend payable
Half-year results announced
Ex-dividend date for interim dividend
Record date for interim dividend
Interim dividend payable
Trading Update
31 December 2023
5 March 2024
24 May 2024
30 May 2024
31 May 2024
21 June 2024
2 August 2024
12 September 2024
13 September 2024
8 October 2024
26 November 2024
Independent Auditors
PricewaterhouseCoopers LLP
1 Embankment Place, London WC2N 6RH
T: +44 (0) 20 7583 5000
Brokers
J.P. Morgan Cazenove
25 Bank Street, Canary Wharf, London E14 5JP
T: +44 (0) 20 7742 4000
Goldman Sachs International
Plumtree Court, 25 Shoe Lane, London EC4A 4AU
T: +44 (0) 20 7774 1000
UBS
5 Broadgate, London EC2M 2QS
T: +44 (0) 20 7567 8000
Registered office
Intertek Group plc
33 Cavendish Square, London W1G 0PS
T: +44 (0) 20 7396 3400
www.intertek.com
Registered number: 04267576
ISIN: GB0031638363
LEI: 2138003GAT25WW1RN369
London Stock Exchange Industrials/Professional Business Support Services
FTSE 100
Symbol: ITRK
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Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Notes
68
Intertek Group plcAnnual Report & Accounts 2023Book three: Financial ReportBook two: Sustainability ReportBook one: Strategic Report Printed by a CarbonNeutral® Company certified to
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Intertek Group plc
33 Cavendish Square,
London, W1G 0PS
United Kingdom
Tel +44 20 7396 3400
info@intertek.com
intertek.com