13 June 2017

Intertek

Intertek is one of those companies that piggy backs on global trade

by John Royden

Head of Research

Group 10Created with Sketch.
Price
£42.95
Group 11Created with Sketch.
52 Week High-Low
£43.32– £30.38
Page 1Created with Sketch.
Net Yield
1.46%
Group 12Created with Sketch.
Hist / Pros Per
26.9–23.3
Page 1Created with Sketch.
Equity Market Cap
£6,875m

Intertek is one of those companies that piggy backs on global trade. Technically the company is a global leader in testing, inspecting and certifying products, commodities and services. For a practical example consider a Chinese manufacturer of toy cars wanting somebody to (a) advise them on European toy safety legislation and then (b) certify to the UK customer, Toys R Us perhaps, that the toy cars are compliant. Intertek does the job. Alternatively, if you are delivering a shipment of soybeans and you need moisture and fungus-free certification then Intertek is who you call.

Back in April, Trump and Xi Jinping started their Mar-a-Lago meeting with the world fearful that Trump would impose trade restrictions on China. They actually ended up promising more global trade rather than less of it.

It looks as if the Chinese are going to allow more agricultural imports, concessions on opening up the financial sector and easier foreign investment. Trump tweeted: “outstanding relationship with President Xi Jinping. I think truly progress has been made...lots of very potentially bad problems going away.”

So if we are to judge world trade’s prospects on the tweets of the President, this seems to bode better than expected. 


Also in this issue

When assessing the profitability of a company, it is important to concentrate not on its reported earnings but on the cash flows that it generates. Earnings can be easily manipulated through…

LIVESLondonFAMILYMarried no childrenEDUCATIONRugby School, Newcastle UniversitySTARTED AT JM FINN & CO2004CURRENT POSITIONInvestment DirectorINTERESTSTravel, Politics, SportFAVOURITE…

Despite this, in my experience few people have fully grasped the enormous benefits that these changes offer, and how they themselves could be affected. This is easy to see, with 2/5th of UK adults…