Porvair (PRV) defied tricky market conditions in China last year to push revenues up 11 per cent, in turn exceeding the 10 per cent growth rate guided to in a December trading update.
Statutory pre-tax profits only grew 3 per cent to £12m – but that still marked a record for the group – while adjusted pre-tax profits grew 9 per cent to £13.5m. That excluded the cost of two acquisitions, along with the amortisation of acquired intangible assets. True, it's not uncommon for companies to make this adjustment, but Porvair’s preference for acquisitive growth shouldn’t be wholly disregarded.
Elsewhere, the aerospace and industrial division – which generates around 40 per cent of group revenue – reported sales growth of 17 per cent to £50.5m. That said, following a reorganisation of Porvair’s operating structure, around £2.5m of that turnover would have been accounted for by the laboratory division.
Broker Peel Hunt has upgraded FY2019 full-year adjusted pre-tax profits and EPS to £14m and 23.6p, respectively, up from £13.6m and 22.6p (£13.5m and 22.8p in FY2018).
PORVAIR (PRV) | ||||
ORD PRICE: | 455p | MARKET VALUE: | £208m | |
TOUCH: | 453-464p | 12-MONTH HIGH: | 566p | LOW: 401p |
DIVIDEND YIELD: | 0.7% | PE RATIO: | 21 | |
NET ASSET VALUE: | 195p* | NET CASH: | £6.6m |
Year to 30 Nov | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2014 | 104 | 8.4 | 14.4 | 3.2 |
2015 | 96 | 9.2 | 15.5 | 3.5 |
2016 | 109 | 10.1 | 17.1 | 3.8 |
2017 | 116 | 11.7 | 19.5 | 2.7 |
2018 | 129 | 12.0 | 22.1 | 3.0 |
% change | +11 | +3 | +13 | +11 |
Ex-div: | 2 May | |||
Payment: | 7 Jun | |||
*Includes intangible assets of £67m, or 146p per share |