One example is Howden Joinery, a London-based company that provides cabinets, flooring, sinks and other materials needed for a kitchen renovation. The stock is down nearly 28 percent since Brexit, but renovations continue. It may fall further if people, worried about a slowing U.K. economy, hold back spending, but that should only be temporary, Peden said. “The renovation industry tends to be more resilient even in a downturn. Kitchens could be considered an essential renovation — it’s one of the most frequently used rooms in a house.”
He’s also keen on U.K.-based manufacturing companies that create goods inside the country, but export them elsewhere. That’s because that pound has been devalued by about 17 percent against the U.S. dollar since the vote, which has made those exports more valuable. That only helps, though, if the company isn’t importing too many materials from other locales. At press time, the pound was up over 1 percent on Thursday morning at 1.245 to the U.S. dollar.
The Trimark manager likes Rotok, which makes actuators, a device that plays an important part in the opening and closing of valves in the oil and gas, marine, mining and water sectors. The majority of the company’s sales are in foreign currency, while their input costs are, mostly, in pounds. “Because of depreciation, when those revenues are translated back into pounds, they’re worth much more,” he said.
Brexit morass is creating a stock buying opportunity – CNBC