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Exova performs admirably

The testing group tackled weakness in key oil and gas and industrial markets by cutting costs and branching out into other high-margin areas
Exova performs admirably

Sometimes the best way to judge a company is to observe how it responds to adversity. Exova (EXO), whose laboratory testing helps to extend the asset life and reliability of industrial applications, achieved this goal admirably in its 2016 financial year.

IC TIP: Hold at 217p

Strip out restructuring costs and the £6.1m-worth of gains it made from selling three businesses, and the group's pre-tax profit for the year rose 8 per cent to £44m. Investors, mindful of weak capital spending in key oil and gas and industrial industries, responded by bidding the shares up 2 per cent.

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