Lab testing firm Intertek shows robust recovery
A BREATHER from talk about reopening trades and bond market gyrations allowed some of London’s dependable industrial stocks to take their turn in the spotlight today.
Annual results from FTSE 100 lab testing firm Intertek, mining technology company Weir and engineering business Rotork were largely encouraging in terms of the 2021 outlook and the green shoots of economic recovery.
Intertek shares were among the standout performers in the top flight after annual results came in ahead of expectations thanks to a robust recovery in second half trading.
It also expects its quality assurance market to grow faster than it did before Covid-19, given the pandemic is likely to lead to increased demand from companies needing to show safer, more diversified supply chains with greater traceability. Shares have struggled in recent months but rose 42p to 5,522p, with analysts at Jefferies reiterating a price target of 7,000p on the back of a 10% beat on second-half earnings.
Intertek’s improvement came during a session in which the FTSE 100 index rose 32.11 points to 6,620.64, despite a 1% sell-off for heavyweight oil stocks BP and Royal Dutch Shell.
In the FTSE 250 index, Rotork shares jumped 12.2p to 369.8p as the Bathbased flow control specialist consolidated its market valuation at more than £3 billion. Rotork, which says its mission is to “keep the world flowing for future generations”, reported a solid order book and improving outlook for its end markets. Profits were slightly lower at £122 million, but the dividend still increased 1.6% to 6.3p a share.
Weir also reported improving trends after orders rebounded 14% in the final quarter of the year, limiting the fall in full-year profits to 5% at £255 million.
The firm is now in its 150th year, with chief executive Jon Stanton upbeat about prospects after the sale of Weir’s oil and gas division to focus on helping mining customers deliver the resources needed in the fight against climate change.