There’s nothing wrong with corporate debt per se, but any fool can lever up a balance sheet. What’s always more impressive is when growth initiatives are funded largely through internal cash flows. Porvair (PRV) provides a case in point. Despite an £11.4m outlay covering capital expenditure and acquisitions, and a fall in operating cash flow on the prior year, the specialist filtration group kicked off its new financial year with net cash of £9.8m. So, even though capacity has been expanded, and the scope of the business extended, the shares underwhelmed through much of the 2017 calendar year – this struck us as slightly perverse.
IC TIP:
Buy
at
546p