A clear and consistent strategy
The way that we operate and manage our development and growth through our consistent strategy and business model continues to underpin our performance and supports our business goal of delivering long term value to all our stakeholders.
Porvair’s strategy has remained consistent for a number of years. It is to generate shareholder value through the development of specialist filtration and environmental technology businesses, both organically and by acquisition. Such businesses have certain key characteristics in common:
- specialist design or engineering skills are required;
- product use and replacement is mandated by regulation, quality accreditation or a maintenance cycle; and
- products are often designed into a specification and will typically have long life cycles.
Over the last five years this strategy has worked for the Group, which moves into 2016 in a position of financial strength, able to invest in both organic and acquired growth as appropriate.
Business model outline
Porvair’s extensive industry know-how, engineering capabilities and strong customer relationships are central to our value proposition and ensure we are well positioned to sustain growth and deliver strong financial returns.
Our customers require filtration or emission control products that perform to a given specification; for a minimum amount of time; and often with prescribed physical attributes such as size or weight. We win business by offering the best technical solutions for these requirements at an acceptable commercial cost. Filtration expertise is applicable across all markets with new products generally being adaptations of existing designs. Experience in particular markets or applications is valuable in building customer confidence. Domain knowledge is important, as is deciding where to direct resources.
- The Group has two divisions. The Microfiltration division serves the aviation, environmental laboratory and energy/industrial markets. The Metals Filtration division focuses on filtration of molten metals, principally aluminium.
- The Group has plants in the US, UK, Germany and China. 48% of revenue is manufactured in the US, 42% in the UK, 8% in Germany and 2% in China.