Porvair still performing

With dark clouds hanging over global equity markets, now is a good time to reassure shareholders. Top marks then to specialist filter firm Porvair. Just a month before results for the six months to 31 May it informed investors that this year will be much better than last.

In fact, revenue excluding currency fluctuations will be up over 10 per cent on the £31m reported in 2011, driven by strong growth at both its businesses. Order books look good and the pipeline of potential projects at microfiltration is encouraging. A large slice of that is likely to be aerospace work, given Porvair supplies aircraft manufacturers with inerting systems for planes to suppress sparks in fuel tanks and coolant filters for the Boeing 787. The metals filtration division, meanwhile, is grabbing market share. Margins have been improving here and double-digit returns look likely before long, especially now that the US motor industry is growing again. A £3.4m spending spree, part bankrolled by healthy cash generation, appears money well spent, too. The three acquisitions – Pulse Instrumentation, Pell Industries and the Block Digester business of Aim Laboratories – have fitted in nicely and are all doing well.