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Highlights
- The British government has announced more sanctions on Russia and banned British service sector exports to the country.
- The ban includes management consulting, accounting and PR services, constituting 10% of Russia's total imports.
Imposing more severe sanctions on Russia over its invasion of Ukraine, the UK government on Wednesday announced a ban on British service sector exports to the country, including management consulting, accounting, and PR services. These three services account for 10% of Russian imports and are critical to its economy, the government said.
The latest wave of sanctions is aimed at creating more pressure on Russia and forcing it to withdraw from Ukraine, where its troops have continued to attack residential areas and cause serious damage since the invasion began in February. Foreign Secretary Liz Truss, in a statement, said that the ban will make sure that Russian President Vladimir Putin 'fails in Ukraine'. She added that doing business with Putin's regime helps him provide support for war and is 'morally bankrupt'.
The aforementioned services are among 63 sanctions announced on Wednesday that also target Russian media organisations and journalists with travel bans and asset freezes.
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Notably, several accounting firms, including the Big 4 - Deloitte, EY, KPMG and PwC - have already pulled out of Russia and its ally Belarus.
Let's take a look at FTSE-listed consulting stocks and how they have been performing.
Experian Plc (LON: EXPN)
The multinational company is engaged in the business of consumer credit reporting and offers analytical and decision-making tools to its clients. The tools help other businesses manage lending risks and reduce the chances of fraud.
Experian's shares were trading at GBX 2,770, up 2.21% on 5 May 2022 at 9:12 am GMT+1, with a market cap of £24,991.05 million. In the past one year, it has given a return of 1.02% to the shareholders, while its year-to-date return stands at -23.82%.
Intertek Group (LON: ITRK)
The London-headquartered company provides quality and safety assurance services to its customers in different industries. It is a constituent of the FTSE 100 index. For the year ending 31 December 2021, the company had shown strong growth in revenue and earnings. The revenue for the period stood at £2,786.3 million, while the statutory operating profit climbed to £433 million from £378 million in the previous year.
The company's current market capitalisation stands at £8,195.54 million, and its one-year returns are in the negative territory at -14.01%. At 9:19 am GMT+1 on 5 May 2022, its shares were trading at GBX 5198.00, up 2.36%.
RWS Holdings (LON: RWS)
RWS provides intellectual property support, language, and content management services to its customers. For the six months ending 31 March 2022, the company's revenues hit £357.3 million. It expects to report an adjusted profit before tax of at least £60 million for the period.
In the last one year, the share price of RWS has depreciated by 35.05%. The shares were trading at GBX 430.00 at 9:30 am GMT+1 on 5 May 2022, with a market cap of £1,683.13 million.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
Tags: Russia-Ukraine conflict, consulting stocks, Experian, Intertek, RWS
