No real surprises at the half-year mark for Porvair (PRV), although shareholders will doubtless welcome an 8 per cent hike in the filtration technology group's interim dividend. As expected, the company revealed a fall-back in revenues, as the comparative top-line in 2014 was boosted by around £8.1m in additional receipts from large-scale projects. Nevertheless, operating profits for the environmental technology specialist were up 7 per cent to £4.48m, which is a truer reflection of the group's continuing progress. Debt commitments were substantially reduced from a year earlier, while operating cash flow came in at £3.1m, against £2.7m in 2014.
The fall in reported revenues was primarily linked to Porvair's microfiltration business, though this was largely offset by a reduction in sales costs across the company. Performance was particularly encouraging across the Atlantic, with 44 per cent revenue growth in the US operations. Orders linked to the Seal Analytical business have improved markedly. And management confirmed additional shipments for the £11m UK Government nuclear remediation contract are planned for the second half of the year.
Revenues at Porvair's metals filtration business were slightly down on 2014, at constant currency, though the performance of the patented products portfolio is encouraging, and the June acquisition of Fiber Ceramics should add annual revenues of around $1m (£0.65m).
Peel Hunt gives an adjusted EPS of 15.1p for the November year-end, against 14.2p in full-year 2014.
| PORVAIR (PRV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 320p | MARKET VALUE: | £143m | |
| TOUCH: | 319-321p | 12-MONTH HIGH: | 342p | 240p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 122p* | NET CASH: | £6.18m | |
| Half-year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 51.0 | 3.8 | 6.0 | 1.2 |
| 2015 | 46.3 | 4.2 | 6.9 | 1.3 |
| % change | -9 | +10 | +15 | +8 |
Ex-div: 30 Jul Payment: 4 Sep *Includes intangible assets of £43.3m, or 97p a share. | ||||
