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Porvair's growth continues

The filtration and environmental technologies specialist has seen revenue and orders continue to grow in the nine months to 31 August
September 18, 2019

Filtration and environmental technologies specialist Porvair (PRV) reported a 15 per cent increase in revenue in the nine months to 31 August, although 11 per cent constant-currency growth is down from 17 per cent at the half-year stage. The order book has been boosted by a strong third-quarter intake from the aerospace and industrial division.

IC TIP: Buy at 610p

Following £6.2m of capital expenditure and investment in acquisitions and the final £2.4m earn-out payment for its JG Finneran subsidiary, the group ended the period with a small £0.1m net cash position. Since then, the company has continued on the acquisition trail, announcing the purchase of Dutch industrial filtration business Royal Dahlman for €7.8m (£6.9m) this month.

Dahlman looks a good fit with the rest of the group, extending Porvair’s capabilities to petrochemical filtration engineering and also enlarging its footprint in the Benelux region and northern Europe. Importantly, in common with most of Porvair’s other activities, demand is likely to be driven by regulation and product quality rather than price. The acquisition is expected to boost earnings from 2020 onwards.