Extract from The Telegraph online article:
“George Luckraft, of asset managers AXA Framlington, said that although the British economy should improve in 2013 and into 2014, international events are likely to remain the drivers for share price performance. “Britain has a number of world leading companies led by quality management with a strong product or service offering and which are set to continue to benefit from economic growth internationally,” he said.
He tipped Victrex, based in Lancashire, a manufacturer of high performance polymers which are exported around the world and used in a wide range of industries. Ninety seven per cent of its sales comes from outside of the UK – one of their biggest projects is the new Boeing Dreamliner plane which has more than a tonne of Victrex polymer in each aircraft.
Investors will currently pay for those bright prospects.Victrex is more expensive than the average for its sector, trading on a P/E ratio of 18. This ratio is calculated by dividing the share price by the earnings per share. The average for Victrex’s sector is 14. The shares also pay an income yield of 2.47pc.
Mr Luckraft also tipped Devro, a world leading manufacturer of collagen products with manufacturing facilities in Scotland, Czech Republic, Australia and the US. It is trading on a P/E of 15.9, compared to an industry average of 31. The stock yields 2.68pc.
The services sector also remains a crucial strength of the British economy, growing faster at 0.6pc.
Bond International is a global leader in staffing, HR and payroll software and services, and Mr Luckraft’s third stock pick. The company won big contracts last year in both Japan and Australia. It has also launched a unique and successful cloud computing software product in the US jobs market. The stock yields 3.2pc.”