Financial News

Interim results for the six months ended 31 May 2009

22 Jun 2009

Porvair plc (“Porvair”), the specialist filtration and environmental technology group, today announces its interim results for the six months ended 31 May 2009.

Key features

Porvair has delivered results in line with recent expectations.
- Revenues up 5% to £27.0m (2008: £25.6m).
- Break-even at profit before tax and exceptional items (2008: profit of £1.9m). The loss before tax was £0.6m (2008: profit of £1.9m).
- Cash generated from operations £2.0m (2008: £1.1m).
- Net debt reduced by £0.7m to £16.0m (30 November 2008: £16.7m).
Results are dominated by significant changes in market conditions, particularly in the US, where demand in some automotive, aluminium and general industrial segments fell by as much as 50%.
In response, decisive management action has been taken. Staff numbers in some US operations have been cut by 40%. These, and other actions, give rise to exceptional restructuring costs of £0.6m.
Many parts of the business, however, are showing resilience and trading well:
- Energy and nuclear remediation demand is strong for the balance of the year and into 2010.
- Industrial process contract wins have been good.
- Life science filtration is trading in line with expectations.
- Seal Analytical, acquired in 2008, is now fully integrated and is trading well.
New products and projects are making good progress:
- 40% of aluminium customers have converted to the new aluminium filter.
- New foundry filter trials are running well.
- Initial production runs of the new energy storage component were successful.

Commenting on the outlook, Ben Stocks, Chief Executive, said:

“Looking ahead we see opportunities for Porvair. Although trading conditions in Metals Filtration have been difficult, it appears that demand has stabilised, albeit at levels well below those seen for more than a decade. Moreover there has been an acceleration in the uptake of new products in Metals Filtration. These are better filters sold at higher margins and will improve both our competitive position and financial performance. With a lower cost base this division is positioned to improve in the remainder of 2009.

“Microfiltration is proving its resilience. It too has areas of weaker demand and recessionary pressure, but these are offset by a good order book for energy and industrial process projects. Seal Analytical is trading well.

“On balance the Board believes that with its spread of markets served, new product introductions and revised US cost base, Porvair will prosper when conditions improve.”

For further information please contact:

Porvair plc	0207 466 5000	today
Ben Stocks, Chief Executive	01553 765 500	thereafter
Chris Tyler, Group Finance Director
Buchanan Communications	0207 466 5000
Charles Ryland / Ben Willey / Catherine Breen