Shares in Intertek increased by over 12% after the product testing and certification company announced a strategic review to evaluate a potential separation of Intertek Energy & Infrastructure.

The FTSE 100 firm said that either a sale or demerger from this division may accelerate the growth of its “leading business lines in a highly attractive and growing” market.

Intertek said the review, which is set to conclude and be implemented by mid 2027, will determine if both Intertek Testing & Assurance and Intertek Energy & Infrastructure, which boast £1.9bn and £1.6bn in revenue respectively, would be better positioned as separate businesses to unlock their full potential.

Alongside this update, the testing company published its Q1 trading update.

Intertek stated that it has had a “strong start” to 2026, with like-for-like (LFL) revenue growth increasing by 5.4% year-on-year to £828.3m, with solid growth across all of its divisions. Its group revenue also increased by 6.7% to £838.5m in this period.

As a result, Intertek has confirmed that it is on track to deliver a “strong 2026”, with its guidance setting out mid-single digit LFL revenue growth, with strong earnings and free cash flow.

Chief executive officer at Intertek, André Lacroix, stated: "We are announcing a strategic review to evaluate the potential separation and creation of two specialist, independent, market-leading, global ATIC businesses - Intertek Testing & Assurance and Intertek Energy & Infrastructure to unleash their full potential and create more value for all.

"Given the leading scale positions we have built in our end markets over the years, and the depth and breadth of our industry leading ATIC offering, we believe that two specialist scale global ATIC businesses could be best positioned to accelerate growth and deliver greater value for shareholders. This would be supported by a focused specialist portfolio strategy, sharper capital allocation, and faster in-market execution."

Head of markets at AJ Bell, Dan Coatsworth, commented: "Hiving off the energy and infrastructure arm would allow Intertek to have a tighter focus on fewer industries. Having a sprawling empire might sound grand, but the modern world has taught businesses that sometimes less is more.

"Demergers can lead to higher valuations, but it’s not guaranteed. In theory, the conglomerate discount would disappear, as a slimmed down entity is easier to understand and analyse. Investors could also choose which of the parts they want to back longer-term once a demerger happens, as some people might only want to support certain business operations and not a bigger beast."

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