Last checked at 7 Dec 2015 07:00
For immediate release | 7 December 2015 |
Porvair Plc
Pre-close trading update and acquisition
Porvair ("Porvair" or "the Group"), the specialist filtration and environmental technologies group, makes the following announcement regarding trading for the year ended 30 November 2015 ahead of its close period and announces the acquisition of the business of TEM Filter Company ("TEM").
Trading update
Porvair has continued to trade well throughout the year. Underlying revenues (1) for the year ended 30 November 2015 are 8% higher than the prior year and earnings are expected to be ahead of current market expectations. Order books for the start of 2016 are healthy.
As expected and previously reported, the unusually high revenues recognised from several large projects in the prior year were not repeated in 2015. Total revenues are therefore 7% lower than the prior year. Build and commissioning work for the large projects is going well.
Underlying revenues in the Microfiltration division were 10% ahead of the prior period. Revenues in the Metals Filtration division grew 3% although, following a record prior year, in constant currency, revenues were 4% lower.
Strong operating cash flow increased net cash above £10m at the year end, achieved despite capital investments of £4.5m, mostly spent on bringing new facilities into operation. New plants in the UK and USA were opened in the first half. Production in the expanded China facility has now started. Further investment in US industrial filtration capacity has started and will be complete in 2016.
Acquisition
On 4 December 2015, the Group's Microfiltration division acquired the goodwill, business and trading assets of TEM. TEM, based in Boise, Idaho, designs and manufactures filters for the microelectronics industry. The Board sees a very good fit between this business and the Group's Microfiltration operations. The transaction, which is for cash, is expected to be modestly earnings accretive.
Porvair will announce its preliminary results for the year ended 30 November 2015 on Monday 25 January 2016.
Note (1) Underlying revenue: Revenue excluding the impact of large projects.
For further information, please contact:
Porvair plc |
| 01553 765 500 |
Ben Stocks, Chief Executive |
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Chris Tyler, Group Finance Director |
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Buchanan Communications |
| 0207 466 5000 |
Charles Ryland / Steph Watson |
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Notes to editors
Porvair plc
Porvair is a group of specialist filtration and environmental technology businesses. Its products are used in a range of niche filtration markets, and are derived from its expertise in the design and manufacture of filtration systems using ceramic, metal, plastic and carbon media. Its Seal Analytical business is a market leader in the manufacture of laboratory based water analysis equipment.