Porvair's share price has almost doubled since the end of last June (67.5p, 30 June 2010), and with good reason as the latest results to end-November show. Like lots of other companies, Porvair got caught out by poor results in the 12-month period starting in early 2009. Savage destocking in metals filtration sent sales tumbling, particularly in the three months ending April 2009. Now, however, after some reorganisation, the trading numbers are showing some improvement - although adjusted sales are still some 20 per cent below 2007-08 levels.
The key behind the latest profits advance is much better results from metals filtration (notably aluminium). Whereas in 2008-09 this division reported an operating loss (pre-exceptionals) of £1.21m, last year it contributed (a still modest) £471,000 profit. On the other hand, microfiltration operating profits (again pre-exceptional) only advanced £210,000 to £5.49m. In both cases, sales rose by around £4m to 23.18m and £40.39m respectively. Both profits and earnings were 11 per cent ahead of company broker Altium's expectations.
PORVAIR (PRV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 126.5p | MARKET VALUE: | £53.2m | |
| TOUCH: | 125-128p | 12-MONTH HIGH: | 133.5p | LOW: 56.75p |
| DIVIDEND YIELD: | 2% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 96p* | NET DEBT: | 25% | |
| Year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 46.2 | 3.08 | 5.2 | 2.10 |
| 2007 | 45.5 | 3.37 | 5.8 | 2.20 |
| 2008 | 54.8 | 4.16 | 7.0 | 2.25 |
| 2009 | 55.2 | 1.06 | 1.6 | 2.25 |
| 2010 | 63.6 | 3.13 | 5.2 | 2.30 |
| % change | +15 | +195 | +225 | +2 |
Ex-div: 4 May Payment: 10 June Chemicals *Includes intangible assets of £37.9m, or 90p a share | ||||
