Intertek Group PLC
04 January 2006
4 January 2006, 7am (UK)
Intertek Group plc ('Intertek')
Nigeria contract termination
Intertek, the global testing, inspection and certification company, reports that
it has yesterday received notification that the pre-shipment inspection (PSI)
contract with the Government of Nigeria has been terminated with effect from 31
December 2005. There will be a three month run off period for all work in
progress at 31 December 2005.
This contract is operated by the Foreign Trade Standards division of Intertek
(FTS) and accounted for approximately 2.7% of Intertek's 2005 full year
revenues. The Nigeria PSI contract was a significant part of FTS' revenues and
its loss will necessitate a reduction in costs. While it is too soon to
determine exactly how the division will be restructured, it is estimated that a
provision of up to £2 million will be required in the 2005 accounts.
FTS signed a new Standards contract with the Government of Nigeria at the start
of 2005 and whilst this contract is still developing it is expected that it
could eventually replace up to a third of the revenues lost from the PSI
contract.
Intertek will announce preliminary results on 6 March 2006 at which point
further information on the restructuring will be given.
For further information, please contact
Aston Swift, Treasurer and Investor Relations
Telephone: +44 (0) 20 7396 3400 aston.swift@intertek.com
Tim Lynch, Tulchan Communications
Telephone: +44 (0) 20 7353 4200 intertekteam@tulchangroup.com
Corporate website: www.intertek.com
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ABOUT INTERTEK
Intertek is a leading international testing, inspection and certification
organisation which assesses customers' products and commodities against a wide
range of safety, regulatory, quality and performance standards and certifies the
management systems of customers. Intertek has over 300 laboratories and over
14,500 people around the world and is increasingly undertaking outsourced
testing work for its customers.
This information is provided by RNS
The company news service from the London Stock Exchange