Intertek (ITRK) is a leading provider of quality and safety solutions. They are engaged in testing, inspection and certification services covering the whole supply chain. Within its five operative divisions, Commodities and Industry & Assurance contribute to 53% of revenues in 1H 2011. Sector diversification should lower earnings risk during cyclical downturns. Increasing concern by consumers and governments about the quality, safety and environmental impact of products is a main driver for ITRK. Global trade volumes are an equally important driver as testing services follows trade cycles. Litigation risk remains high, despite adequate provisions, given its large exposure to USA (26% of revenue). With low Net Debt/EBITDA of 0.6X (2010) the company has the financial strength to continue its acquisitive strategy whereby 7 companies were acquired during 2010. In the beginning of 2011, ITRK also acquired Moody Int. which is the largest acquisition completed by the Group. ITRK’s earnings are sensitive to US dollar fluctuation with 47% of operating profit earned in US dollars in 2010.