The world’s largest inspection and testing group, Geneva-based SGS, has reported a 4.9 per cent increase in profit to SFr534 million ($562 million) in 2011.
The group, which tests consumer products, monitors the transport of goods worldwide and checks imports for governments, posted revenue growth of 13.7 per cent to SFr4.8 billion.
The company notes that the figures are calculated on a constant currency basis. Constant-currency information compares results between periods as if exchange rates had remained constant period-over-period. Without the constant currency prism, net profit is down 9.2 per cent.
Operating cash flows reached SFr690 million in 2011 (constant currency basis), enabling the group to “comfortably fund” SFr337 million of fixed asset investments and complete 22 acquisitions.
During the year, SGS also raised SFr725 million in additional liquidity through issuing corporate bonds. The board will propose a dividend of SFr0.65 per share, and has also authorised another share buy-back programme of up to SFr250 million.
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