UPDATE 2-Intertek says sales up, outlook good

* Margins stable at prior year level of 16.4 pct

* Demand driven by safety, environmental regulation

* A third of sales growth down to currency translation

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By Rhys Jones

LONDON, May 15 (Reuters) - Revenue at British testing and inspections group Intertek (ITRK.L) was up 42 percent in the first four months of 2009 and it expects to grow sales further and keep margins stable through the year, the company said on Friday.

Intertek, which has more than 1,000 laboratories in 110 countries, said revenue to the end of April grew organically but was also boosted by the contribution of acquisitions made over the last two years.

It added that around a third of the revenue growth came from positive exchange rate movements, especially when translating the US dollar, HK dollar, and Chinese yuan into sterling.

The company, which ensures that products such as crude oil and chemicals conform to industry standards and meet safety requirements, said it expected demand for its services to remain robust over the remainder of the year, driven by the increasing regulation of product safety and growing environmental concerns.

"Trading has been line with our expectations despite the challenging global market conditions and our key business drivers remain robust," said chief executive Wolfhart Hauser.

"We expect to maintain a stable margin at prior year levels and to grow well for the remainder of 2009."

Intertek's adjusted operating profit margin stood at 16.4 percent at the year-end.

Analysts on average expect the company to report a pretax profit of 173 million pounds ($261.7 million) for 2009, up from 141 million pounds last year, according to Reuters Estimates.

Intertek's consumer goods business increased revenue by 18 percent during the period, while its industrial services arm delivered 15 percent sales growth.

Its oil and chemicals unit grew revenue by 5 percent but the commercial and electrical division remained flat.

Shares in the company, which have jumped more than a third over the last three months, closed at 1095 pence on Thursday, valuing the company at around 1.7 billion pounds. ($1=.6611 pounds) (Editing by Greg Mahlich)