Testing, Inspection and Certification (TIC) 2013
On 24 April 2013 in Bangladesh two multi-storey factory buildings collapsed. The collapse was caused by a structural failure which resulted in 1130 deaths and injured 2500 people. This shocking tragedy created new awareness in safety in factory buildings in developing countries. It also generated new challenges for Corporate Social Responsibility (CSR) for many companies. Apart from these issues, the incident also raised awareness in workers’ safety, their working conditions and also safety of factory buildings was considered in companies’ standards.
The Growth of TIC in 2013
The top three growing organisations in 2013 were:
Eurofins: Growth picked up due to significant organisational restructuring with organic growth of over 7.5%. Additionally, there were more than 10 acquisitions with total annualized revenues of ca. EUR 120m completed in 2013.
Intertek: The group made seven acquisitions during the year with a purchase price, including debt, of £122m. The larger acquisitions being detailed below:
- In March 2013, the group acquired E-TEST Laboratorio de Ensaios e Tecnologia Ltda. (‘E-TEST’) for £6.6m, a toy and consumer products testing laboratory based in Brazil.
- In July 2013, the group acquired Melbourn Scientific Limited (Melbourn) for £10.5m, a UK based provider of high-quality cGMP analytical and formulation services to the pharmaceutical, biotech and healthcare industries.
- In October 2013, the group acquired Global X-Ray & Testing Corporation (‘GXT’) for £44.9m, a USA based Non-Destructive Testing (NDT) services company providing services to the onshore and offshore oil and gas industry.
- In December 2013, the group acquired Architectural Testing, Inc. (ATI) for £57.6m, a leading building products testing, inspection and certification agency in North America.
Llyod’s Register: Growth was mainly in the energy industry, which grew from 24% five years ago to the current 38%.
The following chart shows the ranking of the biggest Testing, Inspection and Certification (TIC) companies for the year 2013. The figures are given in million euro and were provided by the International Confederation of Inspection and Certification Organisations (CEOC International).
Investing in Quality (TIC) 2013
Investing in quality can also mean investing in TIC companies which are publicly listed in the stock market. Below are the four biggest TIC companies in 2013, including a chart of their performance over that year.
The most successful market performers for the year 2013 were:
- Eurofins with 58.57%
- SGS with -0.25%
- Intertek with -0.67%
- BV with -0.74%