Porvair resilient in rough conditions

Performance across the group was mixed and, given timing factors, the full impact of the disruption might not become apparent until the November year-end.  Aerospace sales collapsed in April and May, although overall revenue from the aerospace and industrial division increased by 11 per cent in the period, to £35.7m. This was thanks to new Dutch business, Royal Dahlman – bought last year – which contributed £6.6m of revenue in the half. Demand for gasification spares, emission control products and microelectronic filters also drove sales growth. However, near-term trading prospects are not so rosy - Royal Dahlman serves the oil, gas and petrochemical markets, and the company says further gasification spares orders are unlikely to be placed until 2021. Matters are far from settled. Consequently, no full-year guidance has been provided.

Chief executive Ben Stocks said several parts of the business could see higher demand in the back end of the year: “We expect demand for emissions control, clean water, process efficiency and laboratory consumables to revert to normal levels as economies recover”.

House broker Peel Hunt expects adjusted pre-tax profit of £10m and EPS of 17p for the full year, down from £14.8m and 25.4p in 2019.