Last checked at 1 Dec 2014 07:00
For immediate release 1 December 2014
Pre-close trading update
Porvair ("Porvair" or "the Group"), the specialist filtration and environmental technologies group, makes the following announcement regarding trading for the year ended 30 November 2014 ahead of its close period.
Porvair has continued to trade strongly throughout the year. Both divisions are expected to deliver record results, with revenue for the full year up 24% (28% at constant exchange rates) and earnings marginally ahead of current market expectations.
Strong operating cash flow has increased net cash at the year end to around £5m, achieved after capital investments of £5m, mostly spent on expanding manufacturing capacity to meet demand.
As anticipated in previous announcements, Group revenue in 2014 received a one-off boost of £20m (2013: £6m) from several large contracts, each of which is proceeding as expected. Profits on these contracts are recognised after making appropriate allowance for the outstanding liabilities, potential risks and warranties. Consequently, we expect further profits to be achieved as milestones are successfully passed over the period to 2017.
Revenue in the Microfiltration division was 34% (36% at constant exchange rates) ahead of the prior year. Underlying revenue growth, excluding the impact of the large projects mentioned above, was 9% (11% at constant exchange rates). Aerospace revenue continued to grow steadily and Seal Analytical recorded a record result for the year.
Revenue in the Metals Filtration division was 5% (11% at constant exchange rates) ahead of the prior year. Market share gains continued to be made, particularly in iron foundry filtration. The new plant in Wuhan, China, is performing as expected and revenue from aluminium filtration in China was strong.
The Group has adopted IAS19 Revised, Employee Benefits, in the year ended 30 November 2014. This increases the defined benefit pension scheme costs charged in the accounts and requires a revision of prior years. Earnings per share for the year ended 30 November 2013, the comparative period, are restated at 12.3 pence compared with the previously reported 12.7 pence.
Order books for the start of 2015 are healthy and the Group has a promising pipeline of potential projects.
Porvair will announce its preliminary results for the year ended 30 November 2014 on Monday 26 January 2015.
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 / Steph Watson |
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.