Porvair Regulatory News (PRV)

29 June 2026

Porvair plc

Interim results for the six months ended 31 May 2026

Record revenue and profit in the first half, continued M&A and positive outlook for the full year

Porvair plc ("Porvair" or the "Group"), the specialist filtration, laboratory and environmental technology group, announces its interim results for the six months ended 31 May 2026 ("H1 26" or the "period").

Financial summary:

Group highlights:

1See notes 1, 2 and 3 for definitions and reconciliations.

Commenting on the performance and outlook, Hooman Caman Javvi, Chief Executive Officer, said:

"The Group delivered both record revenue and profit in the first half, reflecting disciplined execution and the strength and resilience of Porvair's diversified portfolio against mixed conditions across the Group's end markets. Strength in aerospace, nuclear, life sciences, aluminium and superalloys was partially offset by expected weakness in petrochemicals and certain industrial end markets.

We continue to execute at pace and build momentum, with a sustained focus on operational excellence and driving performance across the business, underpinned through disciplined capital allocation. The integration of Drache is progressing to plan, with trading slightly ahead of expectations. We have also continued to deliver against our M&A strategy, having agreed to acquire GV, subject to regulatory approval, and having acquired Carekem in June. Together with the Drache acquisition earlier in the year, we have executed three transactions, one per division, for an aggregate consideration of approximately £25m.

While we continue to monitor the developments in the Middle East, we note that the Group's manufacturing footprint mainly serves local customers, and its decentralised management structure provides flexibility, agility and resilience in navigating volatile trading conditions, enabling key commercial decisions to be made close to customers and suppliers. The Board's expectations for the full year remain unchanged (excluding the part-year contributions from GV and Carekem), supported by the Group's diversified customer base, strong recurring revenue streams and disciplined operational management."

Analyst presentation

Hooman Caman Javvi, Chief Executive Officer and James Mills, Chief Financial Officer, will host an in-person analyst briefing at 9.30am today at the offices of Deutsche Numis. Analysts wishing to attend can register via porvair@almastrategic.com. An audio webcast of the meeting and the presentation will subsequently be made available at www.porvair.com as soon as is practicable.

Capital Markets Event

Porvair will host a Capital Markets Event in London during the afternoon of Wednesday, 14 October 2026.

Please note this is a change from Thursday, 15 October 2026 previously announced.

The event will showcase the Group's three divisions and provide further insight into Porvair's future ambition, strategic priorities and financial framework, with presentations from members of the senior management team. Shareholders wishing to attend should contact porvair@almastrategic.com.

For further information please contact:

Notes to editors

Porvair is a group of specialist filtration, laboratory and environmental technology companies. Our businesses design and manufacture bespoke consumable filtration products that are used in a range of niche markets. It operates in three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality.

Overview

Porvair delivered both record revenue of £106.2m and profit of £13.8m in the first half, in line with expectations, against a backdrop of continued macroeconomic uncertainty and mixed end-market demand. The Group's diversified business model and disciplined execution continued to provide resilience, with strength in structural growth markets offsetting softer conditions elsewhere.

The Group continues to make good progress in executing its strategy, focusing on operational excellence and disciplined capital allocation. We also continue to deliver against the Group's M&A strategy including the successful integration of Drache and two post period end acquisitions with GV, subject to regulatory approval, and Carekem.

As expected, trading varied across the Group's end markets. Strength in aerospace, nuclear, life sciences, aluminium and superalloys offset softer conditions in petrochemicals and selected industrial and automotive-related markets. Petrochemical sales were approximately £7m lower, reflecting subdued activity in Europe as previously signaled, and followed a particularly strong comparator, with record revenues in H1 25. This decline was more than offset by strong nuclear demand, gasification project deliveries in the period for a new customer and growth in other end markets.

Porvair's decentralised operating model remains central to how the Group operates and continues to provide a clear advantage in navigating volatile conditions, enabling fast decision-making close to customers and suppliers. This flexibility has remained particularly valuable in the context of ongoing geopolitical uncertainty, including developments in the Middle East, which to date have had no material impact on performance.

The underlying characteristics of Porvair's business model remain unchanged. The Group operates in highly regulated, specification-driven markets with high levels of repeat demand, low customer concentration and broad geographic exposure. The combination of its specialist technologies, proven engineering capability and deep expertise in material science continue to underpin Porvair's long-term growth prospects, cash generation and disciplined reinvestment.

Financial performance and investment

Reported revenue increased by 9% to £106.2m, with organic constant currency growth of 2%. Adjusted operating profit increased by 10% to £13.8m. Operating margin improved by 10bps to 13.0%, driven by underlying operational improvements across the Group and increased volume from certain end markets, which more than offset both the dilutive impact of the Drache acquisition and lower petrochemical volumes.

A key milestone during the period was the completion of the Drache acquisition. Integration is progressing well, with the Metal Melt Quality teams working closely together in driving commercial and operational improvements, with early trading slightly ahead of expectations. Drache contributed £7.3m of revenue and £0.8m operating profit in the period post completion.

Basic EPS for the period increased by 6% to 20.2 pence per share (H1 25: 19.0 pence per share) and adjusted basic EPS by 11% to 22.1 pence per share (H1 25: 20.0 pence per share). The Board has declared a 9% increase in the interim dividend to 2.4 pence per share (H1 25: 2.2 pence per share).

Capital expenditure remained focused on capacity, productivity and long-term efficiency. The aluminium cast house investment in Hendersonville was completed on time and to budget. These assets require replacement on a 20-25 year cycle and will increase capacity, lower unit costs and reduce carbon emissions.

The Group continues to have a strong balance sheet, with modest borrowings. Closing net cash of approximately £7m, together with existing banking facilities, provides the Group with a strong base from which to continue to progress its strategic and operational plans.

Our capital allocation priorities remain unchanged. We are focused on investment into organic growth initiatives in the first instance, followed by selective and value-accretive acquisitions, and thirdly a progressive dividend policy.

Execution and M&A

The Group continues to build momentum, with a sharper focus on operational excellence and capital allocation. Key actions during the period have been focused on operational delivery and enhanced performance management, including the further strengthening of the team. In terms of capital allocation, we have improved our capex processes and post-investment reviews across the Group. Our decentralised operating model drives profitable growth, while the Executive Committee continues to strengthen accountability across the business.

Innovation remains central to our growth model, with several ongoing customer-led new product developments across the Group, particularly within Aerospace, Seal Analytical and Porvair Life Sciences. This supports our ability to outperform underlying markets and reinforces the differentiated nature of our technology portfolio.

Continuing to deliver on our M&A strategy remains a focus. The Executive Committee, with the support of the central M&A resource and input from General Managers across the Group, proactively manages and develops the pipeline of opportunities. We maintain a disciplined approach to M&A with well-defined criteria. The acquisition of Drache is a clear example of this strategy in action, bringing complementary products and engineering experience, while expanding the division's global reach with a new European base alongside its American and Asian operations, all of which strengthens Metal Melt Quality's position in the growing global aluminium end market.

GV, founded in 2008, specialises in the design and manufacture of industrial filters and complete filtration systems and is based outside of Turin, Italy. It is a company we have known for many years and under its existing management team, GV will join our Aerospace & Industrial division to increase the division's capability and reach into the Italian and wider southern European markets. This acquisition will also bring complementary products and offers cross-selling opportunities for the division. Agreement has been reached to acquire GV, subject to regulatory approval, for a total cash consideration of €6.7m including property, of which €1.0m is deferred. For the year ended December 2025, GV's revenue was approximately €5m and the acquisition is expected to be earnings and margin enhancing this financial year (after integration related costs). GV employs approximately 30 people.

The Group also completed the acquisition of Carekem, a UK laboratory servicing company, in June, which is a small bolt-on acquisition to our Seal Analytical business, within our Laboratory division. Seal Analytical supplies instruments and consumables to environmental laboratories. Carekem provides servicing of environmental instrument equipment with revenue in the year ended March 2026 of £0.8m. The business was acquired for £1.1m. The acquisition will give Seal access to a new customer base, enable cross-selling and provide opportunities to scale our Seal UK business. The acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026.

Track record

The benefit of Porvair's diverse operating spread is shown in the relatively consistent long-term track record, despite inconsistent demand across sectors. The Group's track record for growth, cash generation and investment is as follows:

This longer-term growth record gives the Board confidence in the Group's capabilities and is the basis for capital allocation and planning decisions.

Trading and outlook

The Group delivered both record revenue and profit in the first half in a mixed and uncertain environment. Strength in many of our end markets has more than offset weaker conditions elsewhere, mainly in petrochemical, which is expected to remain subdued for the remainder of 2026, demonstrating once again the resilience of our business model.

Looking ahead, the Group's long-term growth drivers remain firmly in place, including tightening environmental regulation; growth in analytical science; increasing demand for clean water; the shift toward carbon-efficient transportation; and the replacement of traditional materials with aluminium. These trends continue to underpin our markets and support sustained demand for our technologies.

The Board's near-term priorities include continued operational improvement where we expect to see benefits from a more structured and disciplined approach to execution, new product introductions across all divisions, and the ramp-up of recent capital investments, as well as further integration of Drache and welcoming GV and Carekem to the Group.

Before taking account of the part-year contributions from GV and Carekem, the Board's expectations for the full year remain unchanged. With a diversified portfolio, strong recurring revenue base and disciplined execution, Porvair remains well positioned to deliver further progress. The Board sees no change in the Group's long-term strategic outlook and remains committed to a strategy of organic and inorganic growth.

Hooman Caman JavviChief Executive Officer

Financial review

Group results

Revenue was 9% higher on a reported currency basis and 9% higher at constant currency. Organic constant currency revenue growth was 2% (see note 1).

Alternative profit measures

The Group presents alternative profit measures to enable a better understanding of its trading performance (see note 1). Adjusted profit excludes £0.9m (H1 25: £0.6m) for the amortisation of acquired intangible assets and £0.3m (H1 25: £nil) for costs incurred in acquiring 100% of the share capital of Drache, which completed on 12 January 2026, 100% of the share capital of Carekem, which completed on 19 June 2026, and 100% of the share capital of GV, signed on 19 June 2026, for which completion is subject to regulatory approval.

Divisional review

Aerospace & Industrial

1See notes 1 and 2 for definitions and reconciliations.

The Aerospace & Industrial division designs and manufactures a wide range of specialist filtration products, demand for which is driven by customers seeking better engineered, cleaner, safer or more efficient operations. Differentiation is achieved through design engineering; the development of intellectual property; quality accreditations; and customer service. The division operates from sites in the UK, US, the Netherlands, Belgium and India, and its sales are global.

Revenue declined by 2% in the period (3% at constant currency) against a strong comparator, particularly in petrochemicals, which delivered record revenue in H1 25. Petrochemical revenues, which can be lumpy, were approximately £7m (50%) lower than in H1 25, reflecting subdued market conditions in Europe which are expected to remain throughout 2026. Aerospace revenue increased by 8% and nuclear delivered strong growth, supported by favourable sector dynamics and prior-year contract wins. Gasification delivered revenues from a new customer, further demonstrating the division's ability to broaden its customer base. The 70bps reduction in margin was driven largely by operational gearing on reduced petrochemical activities as expected.

In June, the Group agreed to acquire GV for total consideration of €6.7m, of which €1.0m will be deferred over three years. GV is an Italian industrial filtration systems manufacturer and the acquisition will enhance the Aerospace & Industrial division's capability and extend its reach in Italy and the wider southern European market. GV brings complementary products, broadens the division's portfolio and creates cross-selling opportunities. For the year ended December 2025, GV generated revenue of approximately €5m and the acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026, after integration-related costs. GV employs approximately 30 people.

Laboratory

1See notes 1 and 2 for definitions and reconciliations.

The Laboratory division has two operating businesses: Porvair Life Sciences (consisting of Porvair Sciences, Finneran, Kbiosystems and Ratiolab) and Seal Analytical. The division operates from sites in the UK, US, Germany, Hungary, the Netherlands and China, and its sales are global.  

Revenue increased by 3% in the period (4% at constant currency) supported by growth in life sciences, consistent demand for consumables and continued demand in environmental testing markets. Early indicators suggest some moderation in environmental demand in the second half, which will be monitored closely. The division also continued to make progress with new product developments across Seal Analytical, Porvair Sciences and Finneran, with encouraging early market interest. The 90bps improvement in operating margin was driven by value-add product offerings, together with continued operational excellence.

In June, the Group completed the acquisition of Carekem, a UK laboratory servicing company, as a small bolt-on acquisition for Seal Analytical. Carekem generated revenue of £0.8m in the year ended March 2026 and was acquired for total consideration of £1.1m. The acquisition provides Seal with access to a new customer base and creates opportunities to scale the Seal UK business. The acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026.

Metal Melt Quality

1See notes 1 and 2 for definitions and reconciliations.

The Metal Melt Quality division manufactures filters for molten aluminium, ductile iron and nickel-cobalt alloys. It has a well-differentiated product range based on patented products and extensive experience in melt quality assessment. The division operates from sites in the US, Germany and China, and its sales are global.

Metal Melt Quality operates in attractive end markets, including growing demand for aluminium filtration. This global trend is underpinned by the infinite recyclability of aluminium; its strength-to-weight benefits for use in transportation; the replacement of plastic and steel with aluminium; and the energy efficiency of cast house recycling compared with primary production.

In January 2026, the Group acquired 100% of the share capital of Drache, which is active in the development, manufacture, and distribution of filters, consumables, and equipment for the molten metal industry, and is a leading supplier to the aluminium filtration market. The Drache acquisition was a key milestone in the period, strengthening the Group's position in Metal Melt Quality and expanding its European footprint. Integration is progressing to plan and early trading is slightly ahead of expectations.

Drache has further strengthened the Group's aluminium offering, as has the £5.5m investment to update and expand the Group's aluminium cast house production capabilities in Hendersonville, US, which completed in the period, on time and to budget.

Metal Melt Quality revenue increased by 40% in the period. Excluding Drache, constant currency revenue growth was 10%, driven by continued robust aluminium demand and strength in superalloys. Demand in the auto, truck and agriculture end markets, which represent a smaller part of Metal Melt Quality, remained subdued but stable. The 20bps reduction in operating margin was driven by the maiden profit contribution from Drache, which more than offset margin progress on value-add product offerings, continued operational excellence and operating leverage elsewhere.

Net finance costs

Net finance costs comprise interest income on deposits, interest on borrowings, lease liabilities, and the Group's retirement benefit obligations, together with the cost of unwinding discounts on provisions. The Group also incurs undrawn commitment fees on available banking facilities. Net finance costs of £0.7m (H1 25: £0.6m) increased in the period primarily due to interest on borrowings drawn to partially fund the Drache acquisition.

Tax

The total Group tax charge was £2.7m (H1 25: £2.5m), including the tax effect of the adjusting items set out in note 1. The adjusted tax charge was £3.0m (H1 25: £2.6m), with the effective rate of income tax on adjusted profit before tax being 23% (H1 25: 22%).

Cash flow, cash and net debt

Cash generated from operations in the period was £9.7m (H1 25: £10.2m). The Group typically sees an increase in working capital in the first half of the year and working capital increased by £5.8m (H1 25: £3.3m). 

During the period, the Group invested a total of £21.2m on capital expenditure and acquisitions (H1 25: £2.3m). Capital expenditure on property, plant and equipment was £4.0m (H1 25: £2.3m), with the Group continuing to invest in a range of capital projects across all three divisions. The £5.5m capital investment for the update and expansion of the Group's aluminium cast house production capabilities in Hendersonville, US, completed in the period with final payments of £1.5m.

The Group has net cash of £7.1m (H1 25: £17.1m; FY 25: £22.9m), comprising cash of £17.6m (H1 25: £18.8m; FY 25: £22.9m), bank overdrafts of £2.2m (H1 25: £1.7m; FY 25: £nil) and borrowings of £8.3m, (H1 25: £nil; FY 25: £nil). Borrowings were drawn to help fund the Drache acquisition. Cash and cash equivalents held in the UK are subject to a Composite Account System, which is a banking offset arrangement that allows overdrafts to be set-off against cash balances for interest calculation purposes. The Group has lease liabilities of £14.6m (H1 25: £14.2m; FY 25: £14.4m).

Return on capital employed

The Group's adjusted post-tax return on capital employed was 14.0% (H1 25: 13.8%). Excluding the impact of goodwill, acquired intangible assets and retirement benefit obligations, the adjusted post-tax return on operating capital employed was 32.7% (H1 25: 33.7%).

Acquisition

On 12 January 2026, the Group acquired 100% of the share capital of Drache. Provisional cash consideration of £17.8m was paid in January 2026. Further details are provided in note 7.

Events after the reporting date

On 19 June 2026, the Group agreed to acquire, subject to regulatory approval, 100% of the share capital of GV for total consideration of €6.7m, of which €5.7m will be paid on completion and €1.0m paid in three equal instalments in January 2027, 2028 and 2029. Regulatory approval is expected to take up to two months. GV, located near Turin, Italy, will join the Group's Aerospace & Industrial division.

On 19 June 2026, the Group acquired 100% of the share capital of Carekem, a UK laboratory servicing company for £1.1m, of which £0.9m was paid in June. Carekem is a small UK bolt-on acquisition to Seal Analytical within the Laboratory division.

James Mills

Chief Financial Officer

​

Related parties

Other than the remuneration of key management personnel, there were no related party transactions in the six months ended 31 May 2026 (H1 25: none).

Principal risks

Each division considers strategic, operational and financial risks and identifies actions to mitigate those risks. These risk profiles are reviewed by the Board and updated at least annually. Further details of the Group's risk profile analysis can be found in the Strategic Report section of the Annual Report & Accounts for the year ended 30 November 2025. There have been no significant changes in the period.

Certain elements of the Group's order position can change quickly in the face of changing economic circumstances. The Metal Melt Quality division, Laboratory division and general industrial filtration within the Aerospace & Industrial division all have relatively short lead times and order cycles and, therefore, revenue is subject to fluctuations which could have a material effect on the Group's results for the balance of 2026. 

Forward-looking statements

Certain statements in this interim financial information are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Condensed consolidated income statement

For the six months ended 31 May

Condensed consolidated statement of comprehensive income

For the six months ended 31 May

The accompanying notes are an integral part of this interim financial information. 

Condensed consolidated balance sheet

As at 31 May

The interim financial information was approved by the Board of Directors on 26 June 2026 and was signed on its behalf by:

Hooman Caman Javvi James Mills

Chief Executive Officer Chief Financial Officer

The accompanying notes are an integral part of this interim financial information.

Condensed consolidated cash flow statement

For the six months ended 31 May

Reconciliation of net cash flow to movement in net (debt)/cash

For the six months ended 31 May

The accompanying notes are an integral part of this interim financial information.

Condensed consolidated statement of changes in equity

For the six months ended 31 May (unaudited)

The accompanying notes are an integral part of this interim financial information.

Notes

1. Alternative performance measures

Alternative performance measures are used by the Directors and management to monitor business performance internally and exclude certain cash and non-cash items to reflect a more consistent measure of underlying trading performance. The Directors believe that disclosing such non-IFRS measures enables a reader to isolate and evaluate the impact of such items on results and allows for a fuller understanding of performance from period-to-period. Alternative performance measures may not be directly comparable with other similarly titled measures used by other companies.

Alternative revenue measures (unaudited)

Revenue at constant currency is derived from translating overseas subsidiaries results at fixed constant exchange rates. In H1 26 and H1 25, the rates used were US$1.40:£1 and €1.20:£1, compared with reported rates of US$1.35:£1 (H1 25: US$1.29:£1) and €1.15:£1 (H1 25: €1.20:£1).

Organic revenue is revenue at constant exchange rates adjusted for the impact of acquisitions made in the current period and prior year. The acquisition line above relates to revenue from Drache, acquired in January 2026.

Alternative profit measures (unaudited)

A reconciliation of the Group's adjusted profit measures to the reported IFRS measures is presented below:

An analysis of adjusting items is given below:

Adjusted operating profit excludes:

· the amortisation of intangible assets arising on acquisition of businesses of £0.9m (H1 25: £0.6m); and

· other acquisition-related costs of £0.3m (H1 25: £nil) incurred in relation to the acquisition of Drache Umwelttechnik GmbH, Carekem Limited, and the agreement to acquire GV Filtri Industriali S.r.l..

Adjusted earnings before interest, tax, depreciation, and amortisation of intangible assets ("EBITDA")

The Group's adjusted EBITDA is determined as follows:

2. Segmental information

The chief operating decision maker has been identified as the Board of Directors. The Board of Directors has instructed the Group's internal reporting to be based around differences in products and services, in order to assess performance and allocate resources. The key profit measure used to assess the performance of each reportable segment is adjusted operating profit/(loss). Management has determined the operating segments based on this reporting.

The Group is organised on a worldwide basis into three operating segments:

1) Aerospace & Industrial - principally serving the aviation, and energy and industrial markets;

2) Laboratory - principally serving the bioscience and environmental laboratory instrument and consumables market; and

3) Metal Melt Quality - principally serving the global aluminium, iron foundry and superalloys markets.

Other Group operations' costs, assets and liabilities are included in the "Central" division. Central costs mainly comprise Group corporate costs, including new business development costs, some research and development costs and general financial costs. Central assets and liabilities mainly comprise Group retirement benefit obligations, tax assets and liabilities, cash and cash equivalents, and borrowings.

The segment results for H1 26 are as follows:

The segment results for H1 25 are as follows:

The segment assets and liabilities at 31 May 2026 are as follows:

The segment assets and liabilities at 31 May 2025 are as follows:

The segment assets and liabilities at 30 November 2025 are as follows: