REG - Porvair PLC - Interim Results
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RNS Number : 8482O Porvair PLC 30 June 2025
For immediate
release
30 June 2025
Porvair plc
Interim results for the six months ended 31 May 2025
Porvair plc ("Porvair" or the "Group"), the specialist filtration, laboratory
and environmental technology group, announces its interim results for the six
months ended 31 May 2025 ("H1 2025" or the "period").
Highlights:
· Revenue up 3% to £97.7 million (2024: £94.6 million), 5% higher
on a constant currency basis*.
· Adjusted operating profit* 1% higher at £12.6 million (2024:
£12.5 million).
· Operating profit 3% higher at £11.9 million (2024: £11.6
million).
· Adjusted profit before tax* 4% higher at £12.0 million (2024:
£11.5 million).
· Profit before tax 7% higher at £11.3 million (2024: £10.6
million).
· Adjusted basic earnings per share* 3% higher at 20.0 pence (2024:
19.5 pence).
· Basic earnings per share 5% higher at 19.0 pence (2024: 18.1
pence).
· Closing cash at £17.1 million (31 May 2024: £4.1 million; 30
November 2024: £13.7 million) after investing £2.3 million (2024: £2.5
million) in capital expenditure.
· Interim dividend increased by 0.1 pence per share to 2.2 pence
per share (2024: 2.1 pence per share).
Commenting on the performance and outlook, Hooman Caman Javvi, Chief
Executive, said:
"Reporting on my first set of results, the Group has performed in line with
expectations during the first six months of 2025. Trading has been mixed
across our end markets, with strength in certain industrial businesses and
laboratory instruments, offsetting softness in aerospace and foundry together
with foreign exchange headwinds. Currently, the trading outlook for the second
half of the year remains positive. We continue to monitor the near-term
macro-economic uncertainty and tariff environment, noting that the Group's
manufacturing footprint mainly serves local customers.
Since joining the Group, I have visited our locations and met with our highly
talented team across the business. I have been encouraged by our technical
capabilities and the potential of the company, as it is facing end-markets
with long-term growth potential.
The Group's fundamental demand drivers have not changed and Porvair remains
well positioned to take advantage of tightening environmental regulation; the
growth of analytical science; the need for clean water; the development of
carbon-efficient transportation; the replacement of plastic and steel by
aluminium; and the drive for manufacturing process quality and efficiency. It
is these trends that have driven the Group's consistent longer-term trading
record."
*See notes 1, 2 and 3 for definitions and reconciliations.
For further information please contact:
Porvair plc +44 (0)1553 765 500
Hooman Caman Javvi, Chief Executive
James Mills, Group Finance Director
Burson Buchanan +44 (0)20 7466 5000
Charles Ryland / Stephanie Whitmore / Jack Devoy
An analyst briefing will take place at 9:30 a.m. on Monday 30 June 2025 at
Burson Buchanan, please contact Burson Buchanan for details. An audiocast of
the meeting and the presentation will subsequently be made available at
www.porvair.com (http://www.porvair.com) .
Operating review
The Group achieved 3% revenue growth (5% constant currency) in H1 2025.
Adjusted operating profit was 1% ahead of the prior period, impacted by
product mix and foreign exchange headwinds. Cash generation was strong,
leaving net cash of £17.1 million at 31 May 2025, having started the year
with £13.7 million (£4.1 million in prior period).
Trading has been mixed across our end markets. We have experienced stronger
demand in the petrochemical markets and laboratory instruments, while the
auto, truck and agriculture markets were down. There has been a slower start
in aerospace, however we have reassuring order visibility for the second half
of the year. The benefit from the European Filter Corporation (EFC)
acquisition in the prior year continues to come through. Inconsistency in
trading patterns across the Group is not unusual. We serve a range of markets
in different parts of the world and trading can be affected by both local and
global events. We continue to monitor the current macro-economic uncertainty
and tariff environment, noting that the Group's manufacturing footprint mainly
serves local customers.
Despite this natural variation, Porvair benefits from underlying growth trends
that have not changed: tightening environmental regulation; the growth of
analytical science; the need for clean water; the development of
carbon-efficient transportation; the replacement of plastic and steel by
aluminium; and the drive for manufacturing process quality and efficiency. Our
decentralised management structure is helpful in volatile trading conditions,
enabling key commercial decisions to be made closer to customers and
suppliers. The benefit of the Group's diverse operating spread is shown in the
relatively consistent long-term track record, despite inconsistent demand
across sectors.
Since joining the Group, I have visited our locations and met with our highly
talented team across the business. I have been encouraged by our technical
capabilities and the potential of the company, as it is facing end-markets
with long-term growth potential. In order to enhance our execution and
continue to build on strengths, we have formed an Executive Committee
responsible for the management of the Group, consisting of the Executive
Directors and key members of the senior leadership team, and have added a
central resource to support M&A activities.
Financial summary
H1 2025 H1 2024 Growth
£m £m %
Revenue 97.7 94.6 3
Operating profit 11.9 11.6 3
Adjusted operating profit* 12.6 12.5 1
Profit before tax 11.3 10.6 7
Adjusted profit before tax* 12.0 11.5 4
Pence Pence
Earnings per share 19.0 18.1 5
Adjusted earnings per share* 20.0 19.5 3
£m £m
Cash generated from operations 10.2 7.1
Net cash 17.1 4.1
*See notes 1, 2 and 3 for definitions and reconciliations.
Strategy and purpose
Porvair's strategy and purpose have remained consistent for over 20 years, a
period that now encompasses two recessions. The Group's record for growth,
cash generation and investment is:
5 years 10 years 15 years
Revenue CAGR* 6% 7% 8%
Earnings per share CAGR* 9% 9% 15%
Adjusted earnings per share CAGR* 8% 10% 15%
* Compound annual growth rate
5 years 10 years 15 years
£m £m £m
Cash generated from operations 112.7 182.6 235.6
Investment in acquisitions and capital expenditure 51.6 102.9 122.3
This longer-term growth record gives the Board confidence in the Group's
capabilities and is the basis for capital allocation and planning decisions.
Strategic statement and business model
Porvair's strategic purpose is the development of specialist filtration,
laboratory and environmental technology businesses for the benefit of all
stakeholders. Principal measures of success include consistent earnings growth
and selected ESG measures. The Group publishes a full ESG report at the time
of the annual financial results.
The Group is positioned to benefit from global trends as outlined above.
Porvair's businesses have certain key characteristics in common:
· specialist design, engineering or commercial skills are required;
· product use and replacement is mandated by regulation, quality
accreditation or a maintenance cycle; and
· products are typically designed into a system that will have a
long life-cycle and must perform to a given specification.
Orders are won by offering the best technical solutions or commercial service
at an acceptable cost. Technical expertise is necessary in all markets
served. New products are often adaptations of existing designs with attributes
validated in our own test and measurement laboratories. Experience in specific
markets and applications is valuable in building customer confidence. Domain
knowledge is important, as is deciding where to direct resources.
This leads the Group to:
· focus on markets with long-term growth potential;
· look for applications where product use is mandated and
replacement demand is regular;
· make new product development a core business activity;
· establish geographic presence where end-markets require; and
· invest in both organic and acquired growth.
Therefore:
· we focus on three operating segments: Aerospace & Industrial;
Laboratory; and Metal Melt Quality. All have clear long-term growth drivers;
· our products typically reduce emissions or protect complex
downstream systems and, as a result, are replaced regularly. A high proportion
of our annual revenue is from repeat orders;
· through a focus on new product development, we aim to generate
growth rates in excess of the underlying market. Where possible, we build
intellectual property around our product developments;
· our geographic presence follows the markets we serve. In the last
twelve months: 43% of revenue was in the Americas; 17% in Asia; 27% in
Continental Europe; 11% in the UK; and 2% in Africa. The Group has plants in
the US, UK, Belgium, Germany, Hungary, the Netherlands, India and China. In
the last twelve months: 44% of revenue was manufactured in the US; 27% in the
UK; 25% in Continental Europe and 4% in Asia; and
· we aim to meet dividend and investment needs from free cash flow and
modest borrowing facilities. In recent years we have expanded manufacturing
capacity in the US, UK, Germany, Hungary and China, and made several
acquisitions. All investments are subject to a hurdle rate analysis based on
strategic and financial priorities.
Environmental, Social and Governance ("ESG")
The Board understands that responsible business development is essential for
creating long-term value for stakeholders. Most of the products made by
Porvair are used for the benefit of the environment. Our water analysis
equipment measures contamination levels in water. Industrial filters are
typically needed to reduce emissions or improve efficiency. Aerospace filters
improve safety and reliability. Nuclear filters confine fissile materials.
Metal Melt Quality filters reduce waste and help improve the strength to
weight ratio of metal components.
A full ESG report was published in February 2025 and is available on the
Porvair plc website, setting out:
· Porvair's ESG management framework and goals;
· how energy transition and climate change might affect markets
served by the Group, and how these trends affect our long-term planning
framework;
· ESG metrics and results; and
· how the Group acted for the benefit of its stakeholders in 2024.
Divisional review
Aerospace & Industrial
H1 2025 H1 2024 Growth
£m £m %
Revenue 44.6 40.4 10
Operating profit 6.1 5.3 15
Adjusted operating profit* 6.5 5.9 10
*See notes 1 and 2 for definitions and reconciliations.
The Aerospace & Industrial division designs and manufactures a wide range
of specialist filtration products, demand for which is driven by customers
seeking better engineered, cleaner, safer or more efficient operations.
Differentiation is achieved through design engineering; the development of
intellectual property; quality accreditations; and customer service.
Revenue in the period increased by 10%. The demand for the petrochemical
market increased by 23% and the contribution from EFC, acquired in the prior
year, helped to offset the slower demand in US industrial consumables.
Aerospace revenue was 8% lower, with reassuring order visibility for the
second half of the year. Adjusted operating profit was impacted by product mix
and foreign exchange headwinds.
Laboratory
H1 2025 H1 2024 Growth
£m £m %
Revenue 32.3 32.1 1
Operating profit 4.3 4.2 2
Adjusted operating profit* 4.6 4.5 2
*See notes 1 and 2 for definitions and reconciliations.
The Laboratory division has two operating businesses: Porvair Sciences
(including Finneran, Kbiosystems and Ratiolab) and Seal Analytical.
· Porvair Sciences manufactures laboratory filters, small
instruments and associated consumables, for which demand is driven by sample
preparation in analytical laboratories. Differentiation is achieved through
proprietary manufacturing capabilities; control of filtration media; and
customer service.
· Seal Analytical supplies instruments and consumables to
environmental laboratories, for which demand is driven by water quality
regulations. Differentiation is achieved through consistent new product
development focused on improving detection limits, and improving laboratory
automation.
Revenue in the period was up 1%, driven by instrument sales for analytical and
environmental laboratories, with steady demand for consumables. Several new
product developments in Seal Analytical, Porvair Sciences and Kbiosystems were
launched in the year, some of which have already gained good traction and
early interest from the market, which should be good for the full year and
beyond.
Metal Melt Quality
H1 2025 H1 2024 Growth
£m £m %
Revenue 20.8 22.1 (6)
Operating profit 3.3 3.5 (6)
Adjusted operating profit* 3.3 3.5 (6)
*See notes 1 and 2 for definitions and reconciliations.
The Metal Melt Quality division manufactures filters for molten aluminium,
ductile iron and nickel-cobalt alloys. It has a well-differentiated product
range based on patented products and extensive experience in melt quality
assessment.
Revenue in the period fell by 6%. Adjusted operating profit reduced by 6%,
with lower industrial demand within the auto, truck and agriculture market,
which is a smaller part of our Metal Melt Quality business. This was partially
offset with increased aluminium cast shop demand and strong demand for
superalloys. Progress was made in the period with regards to insurance
recovery for damage caused by Hurricane Helene to operations in
Hendersonville, North Carolina, in the prior year.
The £5.5 million investment to update and expand the Group's aluminium cast
house production capabilities in Hendersonville is progressing as per plan,
which will ramp up in the second half and complete in the first half of 2026.
These assets require replacement on a 20-25 year cycle and will increase
capacity, lower unit costs and improve carbon intensity. This investment will
position the Group well to benefit from the continuing increased aluminium
demand due to the replacement of plastic and steel by aluminium with its
recyclability, the energy transition and its strength to weight benefits,
making aluminium the perfect choice for many applications.
Alternative performance measures - Group profit
The Group presents alternative performance measures to enable a better
understanding of its trading performance (see note 1).
H1 2025 H1 2024 Growth
£m £m %
Adjusted operating profit 12.6 12.5 1
Adjusted profit before tax 12.0 11.5 4
Adjusted profit after tax 9.3 9.0 3
Adjusted operating profit and adjusted profit before tax exclude items that
are material and where treatment as an adjusting item provides a more
consistent assessment of the Group's trading performance. Adjusted profit
excludes £0.6 million (2024: £0.9 million) for the amortisation of acquired
intangible assets (see note 1).
Finance costs
Net finance costs comprise interest on borrowings; lease liabilities; and the
Group's retirement benefit obligations; together with the cost of unwinding
discounts on provisions and other payables. The Group also incurs undrawn
commitment fees on available banking facilities. Net finance costs of £0.6
million (2024: £1.0 million) decreased in the period, following the repayment
of borrowings in the second half of the prior year.
Tax
The total Group tax charge was £2.5 million (2024: £2.3 million), including
the tax effect of the adjusting items set out in note 1. The adjusted tax
charge was £2.6 million (2024: £2.5 million), with the effective rate of
income tax on adjusted profit before tax at 22% (2024: 22%).
Earnings per share ("EPS") and dividends
Basic EPS for the period was 19.0 pence (2024: 18.1 pence) and adjusted EPS
20.0 pence (2024: 19.5 pence). The Board has declared an interim dividend of
2.2 pence (2024: 2.1 pence) per share.
Investment
In the last five years, the Group has invested £51.6 million in capital
expenditure and acquisitions. During the period, the Group invested £2.3
million on capital expenditure (2024: £2.5 million).
Cash flow, cash and net debt
Cash generated from operations in the six months to 31 May 2025 was £10.2
million (2024: £7.1 million). The Group typically sees an increase in working
capital in the first half of the year. Working capital increased by £3.3
million (2024: £7.1 million).
Cash and cash equivalents at 31 May 2025 were £17.1 million (31 May 2024:
£4.1 million net of borrowings; 30 November 2024: £13.7 million), comprising
cash of £18.8 million and bank overdrafts of £1.7 million. Cash and cash
equivalents held in the UK are subject to a Composite Account System, which is
a banking offset arrangement that allows the set-off of overdraft balances
with cash for interest calculation purposes. Lease liabilities were £14.2
million (31 May 2024: £18.7 million; 30 November 2024: £17.5 million).
Return on capital employed
The Group's return on capital employed was 14% (2024: 14%). Excluding the
impact of goodwill and retirement benefit obligations, the return on operating
capital employed was 30% (2024: 31%).
Outlook
The Group has performed in line with expectations during the first six months
of 2025. Trading has been mixed across our end markets, with strength in
certain industrial businesses and laboratory instruments, offsetting softness
in aerospace and foundry together with foreign exchange headwinds. Currently,
the trading outlook for the second half of the year remains positive. We
continue to monitor the near-term macro-economic uncertainty and tariff
environment, noting that the Group's manufacturing footprint mainly serves
local customers.
Since joining the Group, I have visited our locations and met with our highly
talented team across the business. I have been encouraged by our technical
capabilities and the potential of the company, as it is facing end-markets
with long-term growth potential.
The Group's fundamental demand drivers have not changed and Porvair remains
well positioned to take advantage of tightening environmental regulation; the
growth of analytical science; the need for clean water; the development of
carbon-efficient transportation; the replacement of plastic and steel by
aluminium; and the drive for manufacturing process quality and efficiency. It
is these trends that have driven the Group's consistent longer-term trading
record.
Hooman Caman Javvi
Group Chief Executive
27 June 2025
Related parties
Other than the remuneration of key management personnel, there were no related
party transactions in the six months ended 31 May 2025 (2024: none).
Principal risks
Each division considers strategic, operational and financial risks and
identifies actions to mitigate those risks. These risk profiles are reviewed
by the Board and updated at least annually. Further details of the Group's
risk profile analysis can be found in the Strategic Report section of the
Annual Report & Accounts for the year ended 30 November 2024. There have
been no significant changes since the year end.
Certain elements of the Group's order position can change quickly in the face
of changing economic circumstances. The Metal Melt Quality division,
Laboratory division and general industrial filtration within the Aerospace
& Industrial division all have relatively short lead times and order
cycles and, therefore, revenue is subject to fluctuations which could have a
material effect on the Group's results for the balance of 2025.
Forward-looking statements
Certain statements in this interim financial information are forward-looking.
Although the Group believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurance that these
expectations will prove to be correct. Because these statements involve risks
and uncertainties, actual results may differ materially from those expressed
or implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements, whether
as a result of new information, future events or otherwise.
Condensed consolidated income statement
For the six months ended 31 May
Six months ended 31 May
2025 2024
Note Unaudited Unaudited
Continuing operations £'000 £'000
Revenue 1,2 97,698 94,639
Cost of sales (62,960) (61,346)
Gross profit 34,738 33,293
Other operating expenses (22,790) (21,708)
Adjusted operating profit 1,2 12,572 12,468
Adjustments:
Amortisation of acquired intangible assets (624) (883)
Operating profit 1,2 11,948 11,585
Finance costs (622) (1,013)
Profit before tax 11,326 10,572
Adjusted income tax expense (2,630) (2,472)
Adjustments:
Tax effect of adjustments to operating profit 1 156 209
Income tax expense (2,474) (2,263)
Profit for the period 8,852 8,309
Profit attributable to:
- Owners of the parent 8,767 8,309
- Non-controlling interests 85 -
Profit for the period 8,852 8,309
Earnings per share (basic) 3 19.0p 18.1p
Earnings per share (diluted) 3 19.0p 18.1p
Adjusted earnings per share (basic) 3 20.0p 19.5p
Adjusted earnings per share (diluted) 3 20.0p 19.5p
Condensed consolidated statement of comprehensive income
For the six months ended 31 May
Six months ended 31 May
2025 2024
Unaudited Unaudited
£'000 £'000
Profit for the period 8,852 8,309
Other comprehensive income/(loss)
Items that will not be reclassified to profit and loss:
Actuarial gain in defined benefit pension plans net of 474 132
tax
Items that may be subsequently reclassified to profit and loss:
Exchange loss on translation of foreign subsidiaries (4,113) (682)
Total other comprehensive loss for the period (3,639) (550)
Total comprehensive income for the period 5,213 7,759
Comprehensive income attributable to:
- Owners of the parent 5,128 7,759
- Non-controlling interests 85 -
Total comprehensive income for the period 5,213 7,759
The accompanying notes are an integral part of this interim financial
information.
Condensed consolidated balance sheet
As at 31 May
As at 30 November
As at 31 May
2025 2024 2024
Note Unaudited Unaudited Audited
£'000 £'000 £'000
Non-current assets
Property, plant and equipment 29,019 28,795 29,327
Right-of-use assets 13,215 17,208 16,433
Goodwill and other intangible assets 87,054 91,242 89,792
Deferred tax asset - 163 84
129,288 137,408 135,636
Current assets
Inventories 30,173 32,480 31,969
Trade and other receivables 32,187 32,405 31,665
Derivative financial instruments 280 185 7
Cash 18,810 14,240 15,838
81,450 79,310 79,479
Current liabilities
Trade and other payables (25,713) (27,420) (27,408)
Bank overdrafts (1,737) (2,266) (2,097)
Borrowings - (7,849) -
Current tax liabilities (1,824) (1,235) (1,572)
Lease liabilities (2,175) (1,763) (2,487)
Derivative financial instruments - - (40)
Provisions 5 (3,353) (2,862) (3,256)
(34,802) (43,395) (36,860)
Net current assets 46,648 35,915 42,619
Non-current liabilities
Deferred tax liability (3,688) (3,903) (3,704)
Retirement benefit obligations (3,375) (5,536) (5,897)
Other payables - - (85)
Lease liabilities (12,057) (16,956) (14,969)
Provisions 5 (366) (324) (346)
(19,486) (26,719) (25,001)
Net assets 156,450 146,604 153,254
Capital and reserves
Share capital 930 927 930
Share premium account 38,407 37,784 38,407
Cumulative translation reserve 5,146 10,143 9,259
Retained earnings 111,754 97,750 104,530
Equity attributable to owners of the parent 156,237 146,604 153,126
Non-controlling interests 213 - 128
Total equity 156,450 146,604 153,254
The interim financial information was approved by the Board of Directors on 27
June 2025 and was signed on its behalf by:
Hooman Caman
Javvi
James Mills
Group Chief
Executive
Group Finance Director
The accompanying notes are an integral part of this interim financial
information.
Condensed consolidated cash flow statement
For the six months ended 31 May
Six months ended 31 May
2025 Unaudited 2024 Unaudited
Note
£'000 £'000
Cash flows from operating activities
Cash generated from operations 7 10,196 7,120
Interest paid (168) (394)
Tax paid (2,092) (1,783)
Net cash generated from operating activities 7,936 4,943
Cash flows from investing activities
Interest received 20 1
Acquisition of subsidiaries (net of cash acquired) - (10,166)
Purchase of property, plant and equipment (2,247) (2,368)
Purchase of intangible assets (36) (143)
Net cash used in investing activities (2,263) (12,676)
Cash flows from financing activities
Proceeds from issue of ordinary shares - 6
Purchase of Employee Benefit Trust shares (430) (319)
Proceeds of loans and borrowings - 10,720
Repayments of loans and borrowings - (2,871)
Repayments of lease liabilities (1,641) (1,803)
Net cash (used in)/generated from financing activities (2,071) 5,733
Net increase/(decrease) in cash and cash equivalents 3,602 (2,000)
Effects of exchange rate changes (270) (78)
3,332 (2,078)
Cash and cash equivalents at the beginning of the period 13,741 14,052
Cash and cash equivalents at the end of the period 17,073 11,974
Reconciliation of net cash flow to movement in net cash/(debt)
For the six months ended 31 May
Six months ended 31 May
2025 Unaudited 2024 Unaudited
£'000 £'000
Net (debt)/cash at the beginning of the period (3,715) 653
Increase/(decrease) in cash and cash equivalents 3,602 (2,000)
Net movement in borrowings - (7,849)
Decrease/(increase) in lease liabilities 3,173 (5,426)
Effects of exchange rate changes (219) 28
Net cash/(debt) at end of period 2,841 (14,594)
Cash and cash equivalents 17,073 11,974
Borrowings - (7,849)
Net cash 17,073 4,125
Lease liabilities (14,232) (18,719)
Net cash/(debt) at end of period 2,841 (14,594)
The accompanying notes are an integral part of this interim financial
information.
Condensed consolidated statement of changes in equity
For the six months ended 31 May (unaudited)
Share premium account Cumulative translation reserve Non-controlling interest
Share capital £'000 £'000 Retained earnings £'000 Total
£'000 £'000 equity
£'000
At 1 December 2023 927 37,778 10,825 90,908 - 140,438
Profit for the period - - - 8,309 - 8,309
Other comprehensive loss - - (682) 132 - (550)
Total comprehensive income for the period
- - (682) 8,441 - 7,759
Purchase of own shares (held in trust)
- - - (319) - (319)
Issue of ordinary share capital - 6 - - - 6
Share-based payments (net of tax)
- - - 562 - 562
Dividends - - - (1,842) - (1,842)
At 31 May 2024 927 37,784 10,143 97,750 - 146,604
At 1 December 2024 930 38,407 9,259 104,530 128 153,254
Profit for the period - - - 8,767 85 8,852
Other comprehensive loss - - (4,113) 474 - (3,639)
Total comprehensive income for the period
- - (4,113) 9,241 85 5,213
Purchase of own shares (held in trust)
- - - (430) - (430)
Share-based payments (net of tax)
- - - 352 - 352
Dividends - - - (1,939) - (1,939)
At 31 May 2025 930 38,407 5,146 111,754 213 156,450
The accompanying notes are an integral part of this interim financial
information.
Notes
1. Alternative performance measures
Alternative performance measures are used by the Directors and management to
monitor business performance internally and exclude certain cash and non-cash
items which they believe are not reflective of the normal course of business
of the Group. The Directors believe that disclosing such non-IFRS measures
enables a reader to isolate and evaluate the impact of such items on results
and allows for a fuller understanding of performance from period to period.
Alternative performance measures may not be directly comparable with other
similarly titled measures used by other companies.
Alternative revenue measures (unaudited)
H1 2025 H1 2024 Growth
Aerospace & Industrial £'000 £'000 %
Underlying revenue 38,228 34,297 11
Acquisition 5,959 4,916
Revenue at constant currency 44,187 39,213 13
Exchange 408 1,221
Revenue as reported 44,595 40,434 10
Laboratory
Revenue at constant currency 31,001 30,337 2
Exchange 1,267 1,732
Revenue as reported 32,268 32,069 1
Metal Melt Quality
Revenue at constant currency 19,182 20,028 (4)
Exchange 1,653 2,108
Revenue as reported 20,835 22,136 (6)
Group
Underlying revenue 88,411 84,662 4
Acquisition 5,959 4,916
Revenue at constant currency 94,370 89,578 5
Exchange 3,328 5,061
Revenue as reported 97,698 94,639 3
Revenue at constant currency is derived from translating overseas subsidiaries
results at budgeted fixed exchange rates. In 2025 and 2024, the budgeted rates
used were US$1.40:£1 and €1.20:£1, compared with reported rates of
US$1.29:£1 (2024: US$1.27:£1) and €1.20:£1 (2024: €1.17:£1).
Underlying revenue is revenue at constant currency adjusted for the impact of
acquisitions made in the current period and prior year. The acquisition line
above relates to the revenue from EFC, acquired in December 2023.
A reconciliation of the Group's adjusted performance measures to the reported
IFRS measures is presented below:
H1 2025 H1 2024
Adjusted Adjustments Reported Adjusted Adjustments Reported
£'000 £'000 £'000 £'000 £'000 £'000
Operating profit 12,572 (624) 11,948 12,468 (883) 11,585
Finance costs (622) - (622) (1,013) - (1,013)
Profit before tax 11,950 (624) 11,326 11,455 (883) 10,572
Income tax expense (2,630) 156 (2,474) (2,472) 209 (2,263)
Profit for the period 9,320 (468) 8,852 8,983 (674) 8,309
An analysis of adjusting items is given below:
H1 2025 H1 2024
Affecting operating profit: £'000 £'000
Amortisation of acquired intangible assets (624) (883)
Affecting tax:
Tax effect of adjustments to operating profit 156 209
Total adjusting items (468) (674)
Adjusted operating profit excludes the amortisation of intangible assets
arising on acquisition of businesses of £0.6 million (2024: £0.9 million).
2. Segmental information
The chief operating decision maker has been identified as the Board of
Directors. The Board of Directors has instructed the Group's internal
reporting to be based around differences in products and services, in order to
assess performance and allocate resources. The key profit measure used to
assess the performance of each reportable segment is adjusted operating
profit/(loss). Management has determined the operating segments based on this
reporting.
As at 31 May 2025, the Group is organised on a worldwide basis into three
operating segments:
1) Aerospace & Industrial - principally serving the aviation, and
energy and industrial markets;
2) Laboratory - principally serving the bioscience and environmental
laboratory instrument and consumables market; and
3) Metal Melt Quality - principally serving the global aluminium, iron
foundry and superalloys markets.
Other Group operations' costs, assets and liabilities are included in the
"Central" division. Central costs mainly comprise Group corporate costs,
including new business development costs, some research and development costs
and general financial costs. Central assets and liabilities mainly comprise
Group retirement benefit obligations, tax assets and liabilities, cash and
borrowings.
The segment results for the period ended 31 May 2025 are as follows:
H1 2025 - Unaudited
Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Total segment revenue 44,597 33,047 20,835 - 98,479
Inter-segment revenue (2) (779) - - (781)
Revenue 44,595 32,268 20,835 - 97,698
Adjusted operating profit/(loss)
6,515 4,574 3,293 (1,810) 12,572
Amortisation of acquired intangible assets
(387) (237) - - (624)
Operating profit/(loss) 6,128 4,337 3,293 (1,810) 11,948
Finance costs - - - (622) (622)
Profit/(loss) before tax 6,128 4,337 3,293 (2,432) 11,326
The segment results for the period ended 31 May 2024 are as follows:
H1 2024 - Unaudited
Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Total segment revenue 40,434 32,689 22,136 - 95,259
Inter-segment revenue - (620) - - (620)
Revenue 40,434 32,069 22,136 - 94,639
Adjusted operating profit/(loss)
5,846 4,521 3,565 (1,464) 12,468
Amortisation of acquired intangible assets
(573) (310) - - (883)
Operating profit/(loss) 5,273 4,211 3,565 (1,464) 11,585
Finance costs - - - (1,013) (1,013)
Profit/(loss) before tax 5,273 4,211 3,565 (2,477) 10,572
The segment assets and liabilities at 31 May 2025 are as follows:
At 31 May 2025 - Unaudited
Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Segmental assets 84,674 71,241 33,512 2,501 191,928
Cash - - - 18,810 18,810
Total assets 84,674 71,241 33,512 21,311 210,738
Segmental liabilities (22,248) (11,927) (5,284) (9,717) (49,176)
Retirement benefit obligations - - - (3,375) (3,375)
Bank overdrafts - - - (1,737) (1,737)
Borrowings - - - - -
Total liabilities (22,248) (11,927) (5,284) (14,829) (54,288)
The segment assets and liabilities at 31 May 2024 are as follows:
At 31 May 2024 - Unaudited
Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Segmental assets 87,009 77,913 34,930 2,626 202,478
Cash - - - 14,240 14,240
Total assets 87,009 77,913 34,930 16,866 216,718
Segmental liabilities (27,607) (13,602) (4,862) (8,392) (54,463)
Retirement benefit obligations - - - (5,536) (5,536)
Bank overdrafts - - - (2,266) (2,266)
Borrowings - - - (7,849) (7,849)
Total liabilities (27,607) (13,602) (4,862) (24,043) (70,114)
The segment assets and liabilities at 30 November 2024 are as follows:
At 30 November 2024 - Audited
Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Segmental assets 87,154 73,447 36,477 2,199 199,277
Cash - - - 15,838 15,838
Total assets 87,154 73,447 36,477 18,037 215,115
Segmental liabilities (26,604) (12,585) (6,573) (8,105) (53,867)
Retirement benefit obligations - - - (5,897) (5,897)
Bank overdrafts - - - (2,097) (2,097)
Borrowings - - - - -
Total liabilities (26,604) (12,585) (6,573) (16,099) (61,861)
Geographical analysis
H1 2025 H1 2024
Unaudited Unaudited
Revenue By destination By origin By destination By origin
£'000 £'000 £'000 £'000
United Kingdom 11,178 24,794 9,308 23,363
Continental Europe 26,587 25,589 26,824 25,682
United States of America 37,478 41,589 39,665 43,074
Other North America 2,422 - 2,212 -
South America 975 - 792 -
Asia 16,993 5,726 14,498 2,520
Africa 2,065 - 1,340 -
97,698 97,698 94,639 94,639
3. Earnings per share ("EPS")
H1 2025 H1 2024
Unaudited Unaudited
As reported Earnings Weighted average number of shares Per share Earnings Weighted average number of shares Per share
£'000 Pence £'000 Pence
Profit for the period - attributable to owners of the parent
8,767 8,309
Shares in issue 46,496,553 46,355,562
Shares owned by the Employee Benefit Trust
(352,474) (367,852)
Basic EPS 8,767 46,144,079 19.0 8,309 45,987,710 18.1
Dilutive share options outstanding
- 26,988 - - 42,588 -
Diluted EPS 8,767 46,171,067 19.0 8,309 46,030,298 18.1
In addition to the above, the Group also calculates an EPS based on adjusted
profit as the Board believes this to be a better measure to judge the progress
of the Group, as discussed in note 1.
H1 2025 H1 2024
Unaudited Unaudited Per share
Adjusted Earnings Weighted average number of shares Per share Earnings Weighted average number of shares Pence
£'000 Pence £'000
Profit for the period - attributable to owners of the parent
8,767 8,309
Adjusting items (note 1) 468 674
Adjusted profit -attributable to owners of the parent
9,235 8,983
Adjusted Basic EPS 9,235 46,144,079 20.0 8,983 45,987,710 19.5
Adjusted Diluted EPS 9,235 46,171,067 20.0 8,983 46,030,298 19.5
4. Dividends per share
H1 2025 H1 2024
Unaudited Unaudited
Per share Per share
Pence £'000 Pence £'000
Final dividend approved 4.2 1,939 4.0 1,842
The final dividend approved for the year ended 30 November 2024 was paid to
shareholders on 4 June 2025.
The Directors have declared an interim dividend of 2.2 pence (2024: 2.1 pence)
per share to be paid on 22 August 2025 to shareholders on the register at the
close of business on 18 July 2025; the ex-dividend date is 17 July 2025.
5. Provisions
Dilapidations Warranty Total
£'000 £'000 £'000
At 1 December 2024 346 3,256 3,602
Additional charge in the period - 328 328
Utilisation of provision - (138) (138)
Unwind of discount 20 - 20
Exchange - (93) (93)
At 31 May 2025 366 3,353 3,719
Provisions arise from potential claims on major contracts, sale warranties,
and discounted dilapidations for leased property. Matters that could affect
the timing, quantum and extent to which provisions are utilised or released,
include the impact of any remedial work, claims against outstanding
performance bonds, and the demonstrated life of the filtration equipment
installed.
6. Contingent liabilities
At 31 May 2025, the Group had €1.2 million (31 May 2024: €2.8 million; 30
November 2024: €5.0 million) and $0.7 million (31 May 2024: $nil; 30
November 2024: $0.7 million) of advanced payment and performance bonds issued
in the ordinary course of business, which are expected to expire no later than
July 2026 and February 2029.
7. Cash generated from operations
H1 2025 H1 2024
Unaudited Unaudited
£'000 £'000
Operating profit 11,948 11,585
Adjustments for:
Fair value movement of derivatives through profit and loss (313) 65
Share-based payments 357 532
Depreciation of property, plant and equipment, and amortisation of intangibles
2,430 2,904
Depreciation of right-of-use assets 1,273 1,323
Operating cash flows before movement in working capital 15,695 16,409
Decrease in inventories 1,097 192
Increase in trade and other receivables (1,496) (7,718)
(Decrease)/increase in trade and other payables (3,061) 840
Increase/(decrease) in provisions 133 (437)
Increase in working capital (3,327) (7,123)
Post-employment benefits (2,172) (2,166)
Cash generated from operations 10,196 7,120
8. Exchange rates
Exchange rates for the US dollar and Euro during the period were:
Average rate to 31 May 25 Average rate to 31 May 24 Closing rate at 31 May 25 Closing rate at 30 Nov 24
Unaudited Unaudited Unaudited Unaudited
US dollar 1.29 1.27 1.35 1.27
Euro 1.20 1.17 1.19 1.20
9. Basis of preparation
Porvair plc is a public limited company registered in the UK and listed on the
London Stock Exchange.
This unaudited condensed interim consolidated financial information for the
six months ended 31 May 2025 has been prepared in accordance with the
Disclosure and Transparency Rules ('DTR') of the Financial Conduct Authority
and with IAS 34 Interim Financial Reporting as contained in UK-adopted
International Accounting Standards. The condensed interim consolidated
financial information should be read in conjunction with the annual financial
statements for the year ended 30 November 2024, which were prepared in
accordance with applicable law and UK-adopted International Accounting
Standards.
The accounting policies applied in these interim financial statements are
consistent with those applied in the Group's consolidated financial statements
for the year ended 30 November 2024. A number of new amendments are effective
from 1 December 2024 but they do not have a material effect on the Group's
financial statements.
Taxes on income in the interim period are accrued using the tax rate that
would be applicable to expected total annual earnings.
This condensed interim consolidated financial information has been prepared on
a going concern basis under the historical cost convention, as modified by the
recognition of certain financial assets and financial liabilities (including
derivative financial instruments) at fair value through profit or loss.
The preparation of condensed interim consolidated financial information, in
conformity with generally accepted accounting principles, requires the use of
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the condensed interim consolidated financial
information, and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results may ultimately
differ from those estimates. In preparing the condensed interim financial
statements, the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those applied to the consolidated financial statements for the
year ended 30 November 2024.
After having made appropriate enquiries including a review of progress against
the Group's budget for 2025, its current trading and medium-term plans, and
taking into account the banking facilities available until August 2028 with an
option to extend by one year, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational existence for at
least twelve months from the date of approval of the condensed interim
consolidated financial information. Accordingly, they continue to adopt the
going concern basis in preparing this condensed interim consolidated financial
information.
This condensed interim consolidated financial information and the comparative
figures do not constitute full accounts within the meaning of Section 434 of
the Companies Act 2006. Statutory accounts for the year ended 30 November
2024, which were approved by the Board of Directors on 7 February 2025, and
which include an unqualified audit report, no emphasis of matter paragraph and
no statements under sections 498(2) or (3) of the Companies Act 2006, have
been delivered to the Registrar of Companies. This condensed interim
consolidated financial information has been reviewed, not audited.
The condensed interim consolidated financial information does not include all
financial risk management information and disclosures required in the annual
financial statements; it should be read in conjunction with the Group's annual
financial statements for the year ended 30 November 2024. There have been no
changes in any risk management policies since the year end.
This report will be available at Porvair plc's registered office at 7 Regis
Place, Bergen Way, King's Lynn, PE30 2JN and on the Company's website,
www.porvair.com (http://www.porvair.com) .
Statement of directors' responsibilities
The Directors confirm that this condensed interim consolidated financial
information has been prepared in accordance with IAS 34 Interim Financial
Reporting as contained in UK-adopted International Accounting Standards, and
that the interim management report herein includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during
the first six months of the year, their impact on the condensed interim
consolidated financial information and a description of the principal risks
and uncertainties for the remaining six months of the financial year; and
· material related party transactions in the first six months
of the year and any material changes in the related party transactions
described in the last annual report.
The Directors of Porvair plc are listed in the Porvair plc Annual Report for
the year ended 30 November 2024. A list of current Directors is maintained on
the Porvair plc website, www.porvair.com (http://www.porvair.com) .
By order of the board
Hooman Caman Javvi James Mills
Group Chief Executive Group Finance Director
27 June 2025
INDEPENDENT REVIEW REPORT TO PORVAIR PLC
Conclusion
We have been engaged by Porvair Plc ('the Company') to review the condensed
set of financial statements of the Company and its subsidiaries (the 'Group')
in the interim financial report for the six months ended 31 May 2025 which
comprises the condensed consolidated income statement, the condensed
consolidated statement of comprehensive income, the condensed consolidated
balance sheet, the condensed consolidated cash flow statement, the condensed
consolidated statement of changes in equity and related notes 1 to 9. We have
read the other information contained in the interim financial report and
considered whether it contains any apparent material misstatements of fact or
material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the interim
financial report for the six months ended 31 May 2025 is not prepared, in all
material respects, in accordance with International Accounting Standard 34,
"Interim Financial Reporting" as contained in UK-adopted International
Accounting Standards, and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" ('ISRE (UK) 2410') issued for use in
the United Kingdom. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 9, the annual financial statements of the Group are
prepared in accordance with UK-adopted International Accounting Standards. The
condensed set of financial statements included in this interim financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting" as contained in UK-adopted International
Accounting Standards.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the Group and
the Company to cease to continue as a going concern.
Responsibilities of Directors
The interim financial report, is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the interim
financial report in accordance with International Accounting Standard 34,
"Interim Financial Reporting" as contained in UK-adopted International
Accounting Standards and the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the interim financial report, the directors are responsible for
assessing the Group's and the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to
liquidate the Group or the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor's Responsibilities for the Review of the Financial Information
In reviewing the interim financial report, we are responsible for expressing
to the Company a conclusion on the condensed set of financial statements in
the interim financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK) 2410 "Review of Interim Financial
Information performed by the Independent Auditor of the Entity". Our review
work has been undertaken so that we might state to the Company those matters
we are required to state to them in an independent review report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company, for our review work,
for this report, or for the conclusions we have formed.
RSM UK Audit LLP
Chartered Accountants
5th Floor, Central Square
29 Wellington Street
Leeds
LS1 4DL
27 June 2025
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