Financial News

Preliminary results for the year ended 30 November 2009

26 Jan 2010

Porvair plc (“Porvair”), the specialist filtration and environmental technology group, today announces its preliminary results for the year ended 30 November 2009.

Financial highlights

Revenues for the year were £55.2m (2008: £54.8m).
Profit before tax and exceptional items was £1.7m (2008: £4.2m), almost all generated in the second half of the year. Profit before tax was £1.1m (2008: £4.2m).
Cash generated from operations of £6.0m (2008: £4.2m), well ahead of the prior year.
Net debt reduced to £13.9m (2008: £16.7m).
Final dividend of 1.25 pence per share (2008: 1.25p) maintained.

Operating highlights

The results for the year are dominated by the sharp fall in demand at Metals Filtration in the first half as aluminium and US automotive de-stocking fed through the supply chain.
The business reacted swiftly to address costs where necessary. Over the course of the year Group headcount was cut by 15%.
The second half of the year was better with sales rates in the US firming in the final quarter. The Group was profitable and cash generative for the year as whole.
Good strategic progress was made, despite the prevailing conditions. The benefits of revenue from new products, cautious geographic expansion and the integration of recent acquisitions can be seen in the results for the year.
Seal Analytical, the water analysis business acquired in 2008, had a strong first year with the Group, generating profits growth and a good cash return on investment.

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

“Current levels of demand across the business have been stable for several months. 2010 has started satisfactorily. Revenue run rates in the US are 10-15% ahead of the lows reached in early 2009. Order books in Microfiltration are at reasonable levels.

“The Board has set a cautious plan for 2010, recognising the uncertainties of the global economic situation. Nonetheless the Board sees grounds for guarded optimism. Microfiltration starts the year with a satisfactory order book and a promising pipeline of larger nuclear and energy orders. It is expanding its presence in Europe, the US and China. The Metals Filtration division is benefiting from a lower cost base such that modest increases in monthly revenues will improve results. Growth from new products will continue in 2010. The Board is confident that Porvair is well positioned to benefit as economic conditions improve.”

For further information please contact:

Porvair plc
01553 765 500
Ben Stocks, Chief Executive
Chris Tyler, Group Finance Director

Buchanan Communications
0207 466 5000
Charles Ryland
Catherine Breen

For full preliminary results please refer to the PDF below.

26 Jan 2010 Preliminary results for the year ended 30 November 2009 (196KB PDF)