REG - Porvair PLC - Results for the year ended 30 November 2021
31/01/2022 07:00
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RNS Number : 0609A Porvair PLC 31 January 2022
For immediate release
31 January 2022
Results for the year ended 30 November 2021
Porvair plc ("Porvair" or "the Group"), the specialist filtration, laboratory
and environmental technology group, announces its results for the year ended
30 November 2021.
Highlights
· Revenue 8% higher at £146.3 million (2020: £135.0 million), 12%
higher on a constant currency basis*.
· Operating profit 25% higher at £15.8 million (2020: £12.6
million).
· Adjusted operating profit* 17% higher at £15.9 million (2020:
£13.6 million).
· Profit before tax 28% higher at £14.8 million (2020: £11.6
million).
· Adjusted profit before tax* 17% higher at £14.8 million (2020:
£12.6 million).
· Basic earnings per share were 26.0 pence (2020: 18.4 pence).
· Adjusted basic earnings per share* were 25.2 pence (2020: 21.6
pence).
· Net cash was £10.2 million (2020: £4.9 million) after investing
£7.2 million (2020: £4.2 million) in capital expenditure and acquisitions.
· Recommended final dividend of 3.5 pence (2020: 3.3 pence)
bringing the full year dividend to 5.3 pence (2020: 5.0 pence).
Commenting on the outlook, Ben Stocks, Chief Executive, said:
"Laboratory demand increased strongly in 2021 and most other segments saw some
measure of recovery except aerospace, where activity levels remain well below
those of 2019. However the spread of markets served by the Group generated a
positive overall performance, supported by the strong balance sheet and
long-term investment focus that are central to Porvair's strategy. The Group
remains well positioned to address global growth trends: tightening
environmental regulations; growth in analytical science; the need for clean
water; carbon-efficient transportation; the replacement of plastic and steel
by aluminium; and the drive for manufacturing process quality and
efficiency.
"At the start of 2022, while order books are flattered by extended lead times
through almost all supply chains, underlying orders are still better than they
were a year ago, notably in aerospace and laboratory. Consistent investment is
improving productivity and margins. In laboratory, covid-related demand may
settle to more regular levels as the pandemic recedes, but as it does so
aerospace activity should pick up. Porvair management teams are monitoring
near-term supply dislocations and inflationary pressures closely and provided
these challenges are navigated successfully the outlook for 2022 is
promising".
* See notes 1 and 3 for definitions and reconciliations.
For further information please contact:
Porvair plc 01553 765 500
Ben Stocks, Chief Executive
James Mills, Group Finance Director
020 7466 5000
Buchanan Communications
Charles Ryland / Steph Whitmore
An analyst briefing will take place at 9:30 a.m. on Monday 31 January 2022,
please contact Buchanan if you wish to join. An audiocast of the meeting and
the presentation will subsequently be made available at www.porvair.com
(http://www.porvair.com) .
Operating Review
Overview of 2021 and impact of covid-19
If 2020 was the year of the pandemic, 2021 was a year of after-shocks and
consequences. In January most of the Group's markets were still in some level
of lockdown, but a wave of industrial re-stocking gathered pace in the Spring.
Sharp order increases improved trading but brought supply dislocation and
inflationary pressures. Management's priority for the year was again staff
wellbeing and working with covid; continuing to invest for the longer term;
and adjusting operations to cope with vicissitudes of supply.
Aerospace activity remained well below 2019 levels through the year, but
laboratory demand increased strongly in 2021 and most other segments saw some
measure of recovery. Porvair remains well positioned to address global growth
trends: tightening environmental regulations; growth in analytical science;
the need for clean water; carbon-efficient transportation; the replacement of
plastic and steel by aluminium; and the drive for manufacturing process
quality and efficiency.
Porvair's unchanged strategic purpose is to develop specialist filtration,
laboratory and environmental technologies for the benefit of all stakeholders.
This statement, and the full Environmental, Social and Governance ('ESG')
report that accompanies it, set out how the Group has worked for its
customers, staff, shareholders, pensioners, and communities in 2021.
Financial Results
2021 2020 Change
£m £m %
Revenue 146.3 135.0 8
Operating profit 15.8 12.6 25
Adjusted operating profit* 15.9 13.6 17
Adjusted profit before tax* 14.8 12.6 17
Profit before tax 14.8 11.6 28
Adjusted earnings per share* 25.2p 21.6p 17
Earnings per share 26.0p 18.4p 41
Cash generated from operations 18.6 13.2
Net cash at 30 November 10.2 4.9
* see note 1 and note 3
Reported revenue increased by 8%. At constant currencies, revenue increased by
12%. Profit before tax increased 28%. Adjusted profit before tax increased by
17% as did adjusted earnings per share.
The Group invested £7.2 million (2020: £4.2 million) in acquisitions and
capital expenditure in 2021.
The Group's record for growth, cash generation and investment is as follows:
5 years 10 years 15 years
CAGR* CAGR* CAGR*
Revenue growth 6% 8% 8%
Earnings per share growth 9% 14% 11%
Adjusted earnings per share growth 8% 13% 11%
£m £m £m
Cash from operations 76.2 138.4 170.7
Investment in acquisitions and capital expenditure 50.3 78.1 93.1
* Compound annual growth rate
Porvair's strategy and purpose has remained consistent for 17 years, a period
that now encompasses two recessions, a pandemic, and many years of growth.
This longer-term record gives the Board confidence in the Group's capabilities
and is the basis for longer term capital allocation and planning decisions.
Strategic statement and business model
Porvair's strategic purpose is to develop specialist filtration, laboratory
and environmental technology businesses for the benefits of all stakeholders.
Principal measures of success include consistent earnings growth over the
medium term and selected ESG measures as set out in the full ESG report.
Porvair businesses have certain key characteristics in common:
· Specialist design or engineering 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 at an acceptable
commercial 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:
1. Focus on markets with long term growth potential.
2. Look for applications where product use is mandated and replacement
demand is regular.
3. Make new product development a core business activity.
4. Establish geographic presence where end-markets require.
5. 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 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: 47% of revenue was in the Americas; 20% in Asia; 22% in
Continental Europe; 10% in the UK; and 1% in Africa. The Group has plants in
the US, UK, Germany, the Netherlands and China. In the last twelve months,
49% of revenue was manufactured in the US, 29% in the UK, 18% in Continental
Europe and 4% in China.
· 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 UK, Germany, US 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 process 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 is published with this statement, setting out:
· Porvair's ESG management framework and goals;
· How a net zero carbon future might affect markets served by the
Group;
· ESG metrics and results; and
· How the Group has acted for the benefit of its stakeholders in
2021.
Aerospace & Industrial
2021 2020 Change
£m £m %
Revenue 55.8 62.0 (10)
Operating profit 3.9 8.0 (51)
Adjusted operating profit* 4.4 6.3 (30)
* see note 2
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; and quality accreditations.
Revenue was 10% lower in 2021 due to falls in aerospace and gasification
activity, partially offset by growth in microelectronics and petrochemical
filtration. Aerospace revenue fell for a second year, down 4% in 2021 (2020:
down 25%), broadly in line with wider industry metrics. As expected, there was
no gasification revenue in 2021 (2020: £7 million). In other industrial
segments activity recovered through the year, with re-stocking lifting orders.
Microelectronics was particularly strong, with revenues benefitting from
newly developed and patented products introduced at the start of the year.
Demand in European industrial and petrochemical markets was steady. Royal
Dahlman traded well in the year, it has been fully integrated into the Group
and achieved synergies with other parts of the division.
The aerospace outlook for 2022 is better. Aerospace orders started to improve
in the second half of 2021 and shipping schedules in early 2022 are stronger.
Lower gasification and aerospace revenue suppressed operating margins in the
plants directly affected, causing adjusted operating profits in the division
to fall to £4.4 million (2020: £6.3 million). Margins were to some extent
protected by restructuring actions carried out in 2020. Cash generation in
the division was good as inventories fell in line with levels of activity.
Capital investment was directed at productivity and capacity enhancements
which should start benefiting performance in 2022.
Laboratory
2021 2020 Change
£m £m %
Revenue 53.2 40.1 33
Operating profit 9.6 7.0 37
Adjusted operating profit* 9.6 6.7 43
* see note 2
The Laboratory division has two operating businesses: Porvair Sciences
(including JG Finneran and Kbiosystems ("Kbio")) and Seal Analytical.
· Porvair Sciences manufactures laboratory filters, small
instruments and associated consumables. Differentiation is achieved through
proprietary manufacturing capabilities and filtration media.
· Seal Analytical is a leading supplier of instruments and
consumables for environmental laboratories for which demand is driven by water
quality regulations. Differentiation is achieved through consistent new
product development.
Revenue grew 33% in 2021. Like for like revenue growth (at constant currency
and excluding acquisitions) was 24%, driven in part by demand for a range of
products used in covid testing and analysis. Capital investment in the year
focused on increasing the capacity and improving the quality of these
components. Although we expect some softening of covid-related demand as the
pandemic recedes, we have gained market share in this category over the last
two years.
Beyond covid, Laboratory demand has been robust for much of 2021, with global
expansion of diagnostic, analytic and environmental labs. The division has
been further helped in the US by expanding routes to market through JG
Finneran and by prior year investments in new manufacturing lines across the
division. Increased demand also brought challenges around supply dislocation,
inflation and staff shortages, all of which require close attention as we move
into 2022.
Kbio, acquired in February 2021, makes equipment used in microplate assays for
analytical laboratories, products that fit well with Porvair Sciences'
microplate business and through JG Finneran's US routes to market. It has
started strongly with the Group, and prospects for 2022, particularly through
US channels, are promising.
Seal Analytical had a record year. Like for like revenue grew 15% with demand
better in all main markets. Seal has a strong recent track record of
introducing new and differentiated products. Those launched in 2021 offer
faster throughput, lower detection limits and better energy efficiency and
will start to generate revenues in 2022.
Metal Melt Quality
2021 2020 Change
£m £m %
Revenue 37.4 32.9 14
Operating profit/(loss) 5.7 (0.2) -
Adjusted operating profit* 5.1 2.8 82
* see note 2
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 a promising new product pipeline.
Revenue rose 14% in 2021, back to 2019 levels despite aerospace-related
activity in this division remaining 23% below 2019. Aluminium filtration was
up 33%, driven by industrial re-stocking and growing demand for aluminium from
carbon-efficient transport and the move away from plastic packaging. Iron
foundry sales also recovered (to 6% below 2019 levels, up 28% in 2021) with US
auto production curtailments balanced by US supply chain re-shoring.
Adjusted operating profit margins were 13.6% (2020: 8.5%), with more
profitable trading in China; consistent operating efficiencies; and the
benefits of 2020 cost reductions all contributing. Inflationary and supply
dislocation challenges were successfully navigated. Adjusted operating profit
of £5.1 million is a record. As outlined at the half year, the Board does not
expect margins in this division to remain at such levels once sales and
marketing costs return to more normal levels post-pandemic, but nonetheless
expects that underlying margins are sustainable at higher than the ten year
average for this division.
Dividends
The Board re-affirms its progressive dividend policy and recommends a final
dividend of 3.5 pence per share, a cost of £1.6 million (2020: 3.3 pence per
share, a cost of £1.5 million). The full year dividend increases by 6% to
5.3 pence per share, a cost of £2.4 million (2020: 5.0 pence per share, a
cost of £2.3 million). The Company had £27.8 million (2020: £17.9
million) of distributable reserves at 30 November 2021.
Staff
While perhaps less disrupted than 2020, 2021 was another challenging year and
the Board is pleased to recognise and applaud the response of our staff to the
many difficulties they have faced. Porvair believes in devolving management
autonomy as far as possible, and our management teams do their best to monitor
and promote staff wellbeing. In many respects, of our various stakeholders, it
is our staff that are the most crucial. The Board takes employee engagement
seriously and, as set out in the ESG report, has a system in place to make
sure it hears and responds to all staff comments. The Board is very grateful
for the hard work, enthusiasm and dedication of all our staff.
Current trading and outlook
Laboratory demand increased strongly in 2021 and most other segments saw some
measure of recovery except aerospace, where activity levels remain well below
those of 2019. However the spread of markets served by the Group generated a
positive overall performance, supported by the strong balance sheet and
long-term investment focus that are central to Porvair's strategy. The Group
remains well positioned to address global growth trends: tightening
environmental regulations; growth in analytical science; the need for clean
water; carbon-efficient transportation; the replacement of plastic and steel
by aluminium; and the drive for manufacturing process quality and
efficiency.
At the start of 2022, while order books are flattered by extended lead times
through almost all supply chains, underlying orders are still better than they
were a year ago, notably in aerospace and laboratory. Consistent investment is
improving productivity and margins. In Laboratory, covid-related demand may
settle to more regular levels as the pandemic recedes, but as it does so
aerospace activity should pick up. Porvair management teams are monitoring
near-term supply dislocations and inflationary pressures closely and provided
these challenges are navigated successfully the outlook for 2022 is promising.
Ben Stocks
Group Chief Executive
28 January 2022
Financial review
Group results
2021 2020 Change
£m £m %
Revenue 146.3 135.0 8
Operating profit 15.8 12.6 25
Profit before tax 14.8 11.6 28
Profit after tax 11.9 8.4 42
Revenue was 8% higher on a reported currency basis and 12% higher at constant
currency (see note 1). Kbio contributed £5.4 million of revenue (see note
6). Operating profit was £15.8 million (2020: £12.6 million) and profit
before tax was £14.8 million (2020: £11.6 million). Profit after tax was
£11.9 million (2020: £8.4 million).
Alternative performance measures - profit
2021 2020 Change
£m £m %
Adjusted operating profit 15.9 13.6 17
Adjusted profit before tax 14.8 12.6 17
Adjusted profit after tax 11.6 9.9 17
The Group presents alternative performance measures to enable a better
understanding of its trading performance (see note 1).
Adjusted operating profit and adjusted profit before tax exclude items that
are considered significant and where treatment as an adjusted item provides a
more consistent assessment of the Group's trading. Adjusted operating profit
excludes £0.1 million (2020: £1.0 million) of net charges from operating
profit. Adjusted items include £0.7 million (2020: £0.6 million) for the
amortisation of acquired intangible assets, £0.5 million (2020: £4.9
million) for impairment of assets and restructuring costs; and a £1.3 million
credit (2020: £nil) relating to the forgiveness of a loan received in the
prior year under the Paycheck Protection Program (PPP). Further details of
these adjustments are set out in note 1.
Impact of exchange rate movements on performance
The international nature of the Group's business means that relative movements
in exchange rates can affect reported performance. The rates used for
translating the results of overseas operations were:
2021 2020
Average rate for translating the results:
US $ denominated operations $1.37:£ $1.28:£
Euro denominated operations €1.16:£ €1.13:£
Closing rate for translating the balance sheet:
US $ denominated operations $1.32:£ $1.34:£
Euro denominated operations €1.18:£ €1.12:£
The movement in average rates used for translating US dollar and Euro results
into Sterling has resulted in a £4.5 million adverse revenue variance between
reported and constant currency.
In the year, the Group sold $16.5 million (2020: $28.1 million) at a net rate
of $1.36:£1 (2020: $1.30:£1) and €10.5 million (2020: €3.5 million) at a
net rate of €1.14:£1 (2020: €1.15:£1).
At 30 November 2021, the Group had $1.0 million and €0.3 million (2020: $1.3
million) of outstanding forward foreign exchange contracts; hedge accounting
has not been applied to these contracts.
Finance costs
Net interest payable comprises bank borrowing costs, interest on lease
liabilities, interest on the Group's pension deficit and the cost of unwinding
discounts on provisions and other payables. Interest increased in the year
to £1.1 million (2020: £1.0 million). Interest cover was 15 times (2020:
14 times). Interest cover on bank finance costs was 51 times (2020: 49
times).
Tax
The Group tax charge was £2.8 million (2020: £3.1 million). Tax on
adjusting items was a credit of £0.4 million (2020: charge £0.5 million) and
tax on adjusted profit before tax was £3.2 million (2020 £2.6 million).
Eligible costs in the prior year associated with the US PPP loan were
previously treated as disallowed for tax; however it has since been
established that these costs are allowable in 2021. Furthermore, the PPP
income, arising on the forgiveness of the loan, in the current year does not
attract US tax. These items combined contribute to the tax credit on net
adjusting items.
The effective rate of tax on adjusted profit is 22% (2020: 21%). The
increase in the year reflects the impact on deferred tax of the increase in
the UK rate from 19% to 25% from 1 April 2023 (impact £0.1 million). The
Group effective tax rate is also impacted by overseas profits, which currently
attract tax rates higher than the 19% in the UK.
The total tax charge comprises current tax of £2.7 million (2020: £2.3
million) and a deferred tax charge of £0.1 million (2020: £0.8 million).
The Group has current tax provisions of £0.9 million (2020: £0.2 million).
The current tax provision includes £1.1 million (2020: £1.0 million) for
uncertainties relating to the interpretation of tax legislation in the Group's
operating territories, offset by payments on account and amounts recoverable
for overpayments of tax.
The Group carries a deferred tax asset of £1.8 million (2020: £2.6 million)
and a deferred tax liability of £2.4 million (2020: £2.8 million). The
deferred tax asset relates principally to the deficit on the pension fund and
share-based payments. The deferred tax liability relates to accelerated
capital allowances, capitalised development costs and other timing
differences, predominantly in the US, and on acquired intangible assets
arising on consolidation.
Total equity and distributable reserves
Total equity at 30 November 2021 was £108.9 million (2020: £98.2 million),
an increase of 11% over the prior year.
The net increase in total equity includes profit after tax of £11.9 million
(2020: £8.4 million), together with a £1.4 million actuarial gain (2020:
loss £2.0 million).
The Company had £27.8 million (2020: £17.9 million) of distributable
reserves at 30 November 2021. The Company's distributable reserves increased
in the year from dividends received from other Group companies, together with
an actuarial gain, offset by head office costs and dividends paid to
shareholders.
Cash flow
The table below summarises the key elements of the cash flow for the year:
Cash flow 2021 2020
£m £m
Operating cash flow before working capital 19.4 19.5
Working capital movement (0.8) (6.3)
Cash generated from operating activities 18.6 13.2
Interest (0.3) (0.3)
Tax (2.2) (2.5)
Capital expenditure net of disposals (3.2) (3.6)
12.9 6.8
Acquisitions (4.0) (0.6)
Dividends (2.3) (2.3)
Share issue proceeds 0.1 0.4
Purchase of EBT shares (0.7) (0.7)
(Decrease)/increase in bank borrowings (3.7) 1.5
Repayment of right-of-use lease liabilities (2.3) (2.3)
Net cash increase in the year - 2.8
Net debt reconciliation 2021 2020
£m £m
Net debt at 1 December (8.7) (11.2)
Decrease/(increase) in borrowings 3.7 (1.5)
Paycheck Protection Program forgiven 1.4 -
Increase in cash and cash equivalents - 2.8
Decrease in lease liabilities 1.1 1.8
Exchange gains/(losses) 0.5 (0.6)
Net debt at 30 November (2.0) (8.7)
Net cash and bank debt 10.2 4.9
Lease liabilities (12.2) (13.6)
Net debt at 30 November (2.0) (8.7)
Generating free cash flow is key to the Group's business model and operating
cash flow of £18.6 million (2020: £13.2 million) represented a 94% (2020:
80%) conversion rate of operating profit before depreciation and
amortisation. Net working capital increased by £0.8 million (2020: £6.3
million). Receivables decreased by £0.2 million (2020: decrease £4.1
million), despite the revenue growth, with strong collections throughout the
year. Inventories increased by £0.5 million (2020: £0.3 million), as
certain businesses were required to manage the impact of supply chain
disruption. Payables and provisions reduced by £0.5 million (2020: decrease
of £10.1 million), despite increased trading activity in the year.
Provisions and contingent liabilities
The Group has £4.7 million (2020: £4.6 million) of provisions for
dilapidations and warranty risks. £1.0 million of warranty provisions have
been created in relation to sales made in the year. £0.9 million of
warranty provisions have been released in the year, following the latest
estimate of the expected costs to be incurred.
At 30 November 2021, the Group had the following advanced payment bonds
(relating to monies received in advance on contracts) and performance bonds
issued to customers in US dollars and Euros:
$m €m
Advanced payment bonds - 0.3
Performance bonds 2.5 0.8
At 30 November 2021 2.5 1.1
$m €m
Advanced payment bonds - 0.2
Performance bonds 2.5 0.8
At 30 November 2020 2.5 1.0
The uncalled performance bonds, which are classified as contingent
liabilities, are expected to be called or released no later than December
2024.
Capital expenditure
Capital expenditure on property, plant and equipment was £3.2 million in the
year (2020: £3.6 million), as the Group continued to invest in capital
projects within each of the three divisions.
Acquisitions
On 25 February 2021, the Group purchased 100% of the share capital of
Kbiosystems Limited ("Kbio") (see note 6). Consideration paid in the year
was £4.0 million (net of cash acquired). A further £2.0 million of
consideration is contingent on Kbio meeting profit targets for the years
ending 31 March 2022 and 2023.
Pension schemes
The Group supports its defined benefit pension scheme in the UK ("The Plan"),
which is closed to new members, and provides access to defined contribution
schemes for its other employees.
The Group's net retirement benefit obligation measured in accordance with IAS
19 Employee Benefits was £12.6 million (2020: £15.4 million). The Plan's
liabilities increased to £49.6 million (2020: £48.6 million). The Plan's
assets increased to £37.0 million (2020: £33.4 million). An actuarial gain
in the year of £1.4 million (2020: loss £2.0 million) was recognised within
the statement of comprehensive income.
The Group's cash contributions paid to The Plan were £2.3 million (2020:
£2.2 million), which included deficit recovery payments of £1.6 million
(2020: £1.6 million).
The triennial actuarial valuation of The Plan determines the cash
contributions that the Group makes to The Plan. The next full actuarial
valuation will be based on The Plan's position at 31 March 2021 and is
expected to be completed before 30 June 2022.
Borrowings and bank finance
At 30 November 2021, the Group had cash balances of £15.4 million (2020:
£15.6 million) and borrowings of £5.2 million (2020: £10.7 million); with
net cash (excluding lease liabilities) being £10.2 million (2020: £4.9
million).
On 18 May 2021, the Group agreed a €28 million (£24 million) four year
secured revolving credit facility, with an option to extend by one year, plus
a €17 million (£14 million) accordion facility, with Barclays Bank plc and
Citibank N.A., London Branch. The financial covenants require the Group to
maintain interest cover of 3.5 times and net debt to be less than 2.5 times
EBITDA. The Group also has a £2.5 million overdraft facility provided by
Barclays Bank plc.
At 30 November 2021, the Group had €21.5 million/£18.3 million (2020:
€12.6 million/£11.3 million) of unused credit facilities and an unutilised
£2.5 million (2020: £2.5 million) overdraft facility.
Finance and treasury policy
The treasury function at Porvair is managed centrally, under Board
supervision. It seeks to limit the Group's trading exposure to currency
movements. The Group does not hedge against the impact of exchange rate
movements on the translation of profits and losses of overseas operations.
The Group finances its operations through share capital, retained profits and,
when required, bank debt. It has adequate facilities to finance its current
operations and capital plans for the foreseeable future.
James Mills
Group Finance Director
28 January 2022
Consolidated income statement
For the year ended 30 November
Note 2021 2020
Continuing operations £'000 £'000
Revenue 1,2 146,310 135,011
Cost of sales (99,353) (91,469)
Gross profit 46,957 43,542
Distribution costs (2,391) (2,373)
Administrative expenses (28,724) (28,612)
Adjusted operating profit 1,2 15,885 13,571
Adjustments:
Amortisation of acquired intangible assets 1 (740) (611)
Other acquisition-related adjustments 1 (98) 442
Settlement of project-related warranties 1 - 4,005
Impairment of assets and restructuring costs 1 (542) (4,850)
Paycheck Protection Program 1 1,337 -
Operating profit 1,2 15,842 12,557
Finance income 2 1
Finance costs (1,086) (1,001)
Profit before income tax 1,2 14,758 11,557
Adjusted income tax expense (3,210) (2,642)
Adjustments:
Tax effect of adjustments to operating profit 1 396 (472)
Income tax expense (2,814) (3,114)
Profit for the year 11,944 8,443
Earnings per share (basic) 3 26.0p 18.4p
Adjusted earnings per share (basic) 3 25.2p 21.6p
Earnings per share (diluted) 3 26.0p 18.4p
Adjusted earnings per share (diluted) 3 25.2p 21.6p
Consolidated statement of comprehensive income
For the year ended 30 November
2021 2020
£'000 £'000
Profit for the year 11,944 8,443
Other comprehensive income
Items that will not be reclassified to profit and loss
Actuarial gain/(loss) in defined benefit pension plans net of tax 1,600 (1,334)
Items that may be subsequently reclassified to profit and loss
Exchange gains/(losses) on translation of foreign subsidiaries 12 (1,713)
Changes in fair value of foreign exchange contracts held as a cash flow hedge
- (35)
12 (1,748)
Other comprehensive income/(expense) for the year 1,612 (3,082)
Total comprehensive income for the year attributable to the owners of Porvair
plc
13,556 5,361
Consolidated balance sheet
As at 30 November
Note 2021 2020
£'000 £'000
Non-current assets
Property, plant and equipment 21,235 20,716
Right-of-use assets 11,014 12,762
Goodwill and other intangible assets 5 74,103 70,039
Deferred tax asset 1,821 2,614
108,173 106,131
Current assets
Inventories 24,650 23,355
Trade and other receivables 21,344 20,674
Derivative financial instruments - 23
Cash and cash equivalents 15,442 15,563
61,436 59,615
Current liabilities
Trade and other payables (21,702) (20,197)
Current tax liabilities (853) (192)
Borrowings - (1,379)
Lease liabilities (2,207) (2,007)
Derivative financial instruments (20) -
Provisions 7 (4,372) (4,365)
(29,154) (28,140)
Net current assets 32,282 31,475
Non-current liabilities
Borrowings (5,217) (9,303)
Deferred tax liability (2,425) (2,839)
Retirement benefit obligations (12,602) (15,395)
Other payables (945) -
Lease liabilities (10,024) (11,609)
Provisions 7 (296) (268)
(31,509) (39,414)
Net assets 108,946 98,192
Capital and reserves
Share capital 924 923
Share premium account 37,078 36,927
Cumulative translation reserve 7,657 7,645
Retained earnings 63,287 52,697
Equity attributable to owners of the parent 108,946 98,192
Total equity 108,946 98,192
Consolidated cash flow statement
For the year ended 30 November
Note 2021 2020
£'000 £'000
Cash flows from operating activities
Cash generated from operations 9 18,624 13,220
Interest paid (307) (347)
Tax paid (2,215) (2,551)
Net cash generated from operating activities 16,102 10,322
Cash flows from investing activities
Interest received 2 1
Acquisition of subsidiaries (net of cash acquired) 6 (3,968) (588)
Purchase of property, plant and equipment (3,182) (3,458)
Purchase of intangible assets 5 (47) (166)
Proceeds from sale of property, plant and equipment 9 -
Net cash used in investing activities (7,186) (4,211)
Cash flows from financing activities
Proceeds from issue of ordinary shares 152 425
Purchase of EBT shares (716) (726)
Receipt of Payment Protection Plan loan - 1,507
Repayment of revolving credit facility borrowings (3,687) -
Dividends paid to shareholders 4 (2,345) (2,253)
Repayments of lease liabilities (2,292) (2,297)
Net cash used in financing activities (8,888) (3,344)
Net increase in cash and cash equivalents 28 2,767
Exchange losses on cash and cash equivalents (149) (93)
(121) 2,674
Cash and cash equivalents at 1 December 15,563 12,889
Cash and cash equivalents at 30 November 15,442 15,563
Reconciliation of net cash flow to movement in net debt
2021 2020
£'000 £'000
Net debt at 1 December (8,735) (11,204)
Decrease/(increase) in borrowings 3,687 (1,507)
Paycheck Protection Plan loan waiver 1,337 -
Net increase in cash and cash equivalents 28 2,767
Decrease in lease liabilities 1,147 1,778
Effects of exchange rate changes 530 (569)
Net debt at 30 November (2,006) (8,735)
Net cash and bank debt 10,225 4,881
Lease liabilities (12,231) (13,616)
Net debt at 30 November (2,006) (8,735)
Consolidated statement of changes in equity
Share Cumulative
Share capital premium account translation reserve Retained earnings
£'000 £'000 £'000 £'000 Total
£'000
Balance at 30 November 2019 921 36,504 9,358 48,552 95,335
Profit for the year - - - 8,443 8,443
Other comprehensive expense - - (1,713) (1,369) (3,082)
Total comprehensive income for the year
- - (1,713) 7,074 5,361
Consideration paid for purchase of own shares (held in trust)
- - - (726) (726)
Employee share option schemes:
- value of employee services net of tax - - - 50 50
Proceeds from shares issued 2 423 - - 425
Dividends paid (note 4) - - - (2,253) (2,253)
Total transactions with owners recognised directly in equity
2 423 - (2,929) (2,504)
Balance at 30 November 2020 923 36,927 7,645 52,697 98,192
Profit for the year - - - 11,944 11,944
Other comprehensive income - - 12 1,600 1,612
Total comprehensive income for the year
- - 12 13,544 13,556
Consideration paid for purchase of own shares (held in trust)
- - - (716) (716)
Employee share option schemes:
- value of employee services net of tax - - - 107 107
Proceeds from shares issued 1 151 - - 152
Dividends paid (note 4) - - - (2,345) (2,345)
Total transactions with owners recognised directly in equity
1 151 - (2,954) (2,802)
Balance at 30 November 2021 924 37,078 7,657 63,287 108,946
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 year to year.
Alternative performance measures may not be directly comparable with other
similarly titled measures used by other companies.
Alternative revenue measures
2021 2020 Growth
Aerospace & Industrial £'000 £'000 %
Revenue at constant currency 54,888 59,787 (8)
Exchange 888 2,193
Revenue as reported 55,776 61,980 (10)
Laboratory
Underlying revenue 46,863 37,829 24
Acquisitions 5,428 -
Revenue at constant currency 52,291 37,829 38
Exchange 885 2,298
Revenue as reported 53,176 40,127 33
Metal Melt Quality
Revenue at constant currency 36,225 30,020 21
Exchange 1,133 2,884
Revenue as reported 37,358 32,904 14
Group
Underlying revenue 137,976 127,636 8
Acquisitions 5,428 -
Revenue at constant currency 143,404 127,636 12
Exchange 2,906 7,375
Revenue as reported 146,310 135,011 8
Revenue at constant currency is derived from translating overseas subsidiaries
results at budgeted fixed exchange rates. In 2021 and 2020 the rates used
were $1.4:£1 and €1.2:£1, compared with reported rates of $1.37:£1 (2020:
$1.28:£1) and €1.16:£1 (2020: €1.13:£1).
Underlying revenue is revenue at constant currency adjusted for the impact of
acquisitions made in the current and prior year.
The acquisition line relates to the revenue in relation to the acquisition of
Kbio, which was acquired in February 2021.
Alternative profit measures
A reconciliation of the Group's adjusted performance measures to the reported
IFRS measures is presented below:
2021 2020
Adjusted Adjustments Reported Adjusted Adjustments Reported
£'000 £'000 £'000 £'000 £'000 £'000
Operating profit 15,885 (43) 15,842 13,571 (1,014) 12,557
Finance income 2 - 2 1 - 1
Finance costs (1,086) - (1,086) (1,001) - (1,001)
Profit before income tax 14,801 (43) 14,758 12,571 (1,014) 11,557
Income tax expense (3,210) 396 (2,814) (2,642) (472) (3,114)
Profit for the year 11,591 353 11,944 9,929 (1,486) 8,443
An analysis of adjusting items is given below:
2021 2020
Affecting operating profit £'000 £'000
Amortisation of acquired intangible assets (740) (611)
Other acquisition-related adjustments (98) 442
Settlement of project-related warranties - 4,005
Impairment of assets and restructuring costs (542) (4,850)
Paycheck Protection Program 1,337 -
(43) (1,014)
Affecting tax
Tax effect of adjustments to operating profit 396 (472)
Total adjusting items 353 (1,486)
Adjusted operating profit and adjusted profit before tax exclude:
* The amortisation of intangible assets arising on acquisition of businesses of
£0.7 million (2020: £0.6 million);
* Other acquisition-related costs of £0.1 million (2020: £0.4 million credit)
in relation to the acquisition of Kbio;
* Provision releases of £nil million (2020: £5.1 million) arising from the
settlement of outstanding warranty issues and the cancellation of performance
bonds related to the large gasification projects. Related to the release in
the prior year, the Group wrote-off a £1.1 million receivable due;
* Covid-19 related impairment of assets and restructuring costs of £0.5
million, principally within the Aerospace & Industrial division. The prior
year consisted of a £2.3 million charge in relation to the Metal Melt Quality
operations in China, together with other covid-related restructuring and plant
reconfigurations across the Group; and
* A credit of £1.3 million (2020: £nil) relating to the monies received in the
prior year from the Truist Bank under the Paycheck Protection Program
(“PPP”). The PPP loan was forgivable provided the proceeds were used for
eligible purposes, including maintaining payroll levels. US operations used
this money to keep jobs open and active through the 2020 downturn and the
eligible costs associated were recognised in 2020. However, formal forgiveness
of the loan was not received until 2021, leading to a timing difference
between the costs incurred and recognised in 2020; and the income recognised
in 2021.
A tax charge or credit has been calculated on each adjusting credit or charge
using the Group tax rate prevailing in each of the local territories where it
arises. Eligible costs in the prior year associated with the US PPP loan were
previously treated as disallowed for tax; however it has since been
established that these costs are allowable in 2021. Furthermore, the PPP
income, arising on the forgiveness of the loan, in the current year does not
attract US tax. These items combined contribute to the 2021 tax credit on
net adjusting items.
Return on capital employed
The Group uses two return measures to assess the return it makes on its
investments:
· Return on capital employed of 13% (2020: 12%) is the tax adjusted
operating profit as a percentage of the average capital employed. Capital
employed is the average of the opening and closing Group net assets less the
average of the opening and closing net cash position; and
· Return on operating capital employed of 31% (2020: 29%) is
calculated on the same basis except that the capital employed is adjusted to
remove the average of the opening and closing goodwill and the opening and
closing pension deficit to give a measure of the operating capital.
2. Segment 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. Management have determined the
operating segments based on this reporting.
As at 30 November 2021, 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, North
American Free Trade Agreement (NAFTA) iron foundry and super-alloys 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 year ended 30 November 2021 are as follows:
2021 Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Total segment revenue 55,918 54,965 37,358 - 148,241
Inter-segment revenue (142) (1,789) - - (1,931)
Revenue 55,776 53,176 37,358 - 146,310
Adjusted operating profit/(loss) 4,399 9,649 5,074 (3,237) 15,885
Adjustments:
Amortisation of acquired intangible assets
(396) (344) - - (740)
Other acquisition-related adjustments
- - - (98) (98)
Impairment of assets and restructuring costs
(542) - - - (542)
Paycheck Protection Program
407 295 635 - 1,337
Operating profit/(loss) 3,868 9,600 5,709 (3,335) 15,842
Net finance costs - - - (1,084) (1,084)
Profit/(loss) before income tax
3,868 9,600 5,709 (4,419) 14,758
Adjusted income tax expense
- - - (3,210) (3,210)
Tax effect of adjustments to operating profit
- - - 396 396
Income tax expense - - - (2,814) (2,814)
Profit/(loss) for the year 3,868 9,600 5,709 (7,233) 11,944
2020 Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Total segment revenue 61,990 42,012 32,904 - 136,906
Inter-segment revenue (10) (1,885) - - (1,895)
Revenue 61,980 40,127 32,904 - 135,011
Adjusted operating profit/(loss)
6,279 6,718 2,803 (2,229) 13,571
Adjustments:
Amortisation of acquired intangible assets
(467) (144) - - (611)
Other acquisition-related adjustments
- 442 - - 442
Settlement of project- related warranties
4,005 - - - 4,005
Impairment of assets and restructuring costs
(1,833) (55) (2,962) - (4,850)
Operating profit/(loss) 7,984 6,961 (159) (2,229) 12,557
Net finance costs - - - (1,000) (1,000)
Profit/(loss) before income tax
7,984 6,961 (159) (3,229) 11,557
Adjusted income tax expense
- - - (2,642) (2,642)
Tax effect of adjustments to operating profit
- - - (472) (472)
Income tax expense - - - (3,114) (3,114)
Profit/(loss) for the year 7,984 6,961 (159) (6,343) 8,443
The segment assets and liabilities at 30 November 2021 are as follows:
30 November 2021 Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Segmental assets 70,038 51,720 30,087 2,322 154,167
Cash and cash equivalents
- - - 15,442 15,442
Total assets 70,038 51,720 30,087 17,764 169,609
Segmental liabilities (19,242) (12,675) (5,747) (5,180) (42,844)
Retirement benefit obligations
- - - (12,602) (12,602)
Borrowings - - - (5,217) (5,217)
Total liabilities (19,242) (12,675) (5,747) (22,999) (60,663)
The segment assets and liabilities at 30 November 2020 are as follows:
30 November 2020 Aerospace & Industrial Metal Melt Quality
Laboratory Central Group
£'000 £'000 £'000 £'000 £'000
Segmental assets 73,459 42,926 30,860 2,938 150,183
Cash and cash equivalents
- - - 15,563 15,563
Total assets 73,459 42,926 30,860 18,501 165,746
Segmental liabilities (22,013) (11,875) (5,548) (2,041) (41,477)
Retirement benefit obligations
- - - (15,395) (15,395)
Borrowings - - - (10,682) (10,682)
Total liabilities (22,013) (11,875) (5,548) (28,118) (67,554)
Geographical analysis
2021 2020
By destination By origin By destination By origin
£'000 £'000 £'000 £'000
Revenue
United Kingdom 14,886 42,652 13,990 41,343
Continental Europe 31,534 25,873 24,136 23,118
United States of America 64,673 71,695 54,121 63,811
Other NAFTA 2,647 - 5,296 -
South America 2,642 - 1,883 -
Asia 28,688 6,090 34,562 6,739
Africa 1,240 - 1,023 -
146,310 146,310 135,011 135,011
3. Earnings per share
2021 2020
Total Weighted average number of shares Weighted average number of shares
Per share amount Per share amount
(pence) (pence)
£'000 £'000
Profit for the year - attributable to ordinary shareholders
11,944 8,443
Number of ordinary shares in issue
46,170,094 46,069,323
Number of ordinary shares owned by the Employee Benefit Trust
(198,822) (106,316)
Basic EPS 11,944 45,971,272 26.0 8,443 45,963,007 18.4
Dilutive impact of share options outstanding
- 38,370 - - 21,666 -
Diluted EPS 11,944 46,009,642 26.0 8,443 45,984,673 18.4
In addition to the above, the Group also calculates an earnings per share
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.
2021 2020
Weighted average number of shares Weighted average number of shares
Adjusted Per share amount Per share amount
(pence) (pence)
£'000 £'000
Profit for the year - attributable to ordinary shareholders
11,944 8,443
Adjusting items (note 1) (353) 1,486
Adjusted profit - attributable to equity holders of the parent
11,591 9,929
Basic EPS 11,591 45,971,272 25.2 9,929 45,963,007 21.6
Diluted EPS 11,591 46,009,642 25.2 9,929 45,984,673 21.6
4. Dividends per share
2021 2020
Per share £'000 Per share £'000
Final dividend paid - in respect of prior year
3.30p 1,517 3.20p 1,472
Interim dividend paid - in respect of current year
1.80p 828 1.70p 781
5.10p 2,345 4.90p 2,253
The Directors recommend the payment of a final dividend of 3.5 pence per share
(2020: 3.3 pence per share) to be paid on 1 June 2022 to shareholders on the
register on 29 April 2022; the ex-dividend date is 28 April 2022. This makes
a total dividend for the year of 5.3 pence per share (2020: 5.0 pence per
share).
5. Goodwill and other intangible assets
Trademarks, knowhow and other intangibles
Development expenditure capitalised
Software capitalised
Goodwill Total
£'000 £'000 £'000 £'000 £'000
Net book amount at 30 November 2020
64,871 82 818 4,268 70,039
Additions - - 47 - 47
Acquisitions 3,089 - - 2,232 5,321
Disposals - - (2) - (2)
Disposals amortisation - - 2 - 2
Amortisation charges - (47) (226) (800) (1,073)
Exchange differences (114) (2) (22) (93) (231)
Net book amount at 30 November 2021
67,846 33 617 5,607 74,103
At 30 November 2021 Trademarks, knowhow and other intangibles
Development expenditure capitalised
Software capitalised
Goodwill Total
£'000 £'000 £'000 £'000 £'000
Cost 86,489 896 1,800 9,645 98,830
Accumulated amortisation and impairment
(18,643) (863) (1,183) (4,038) (24,727)
Net book amount 67,846 33 617 5,607 74,103
6. Acquisitions
Acquisition of Kbio
On 25 February 2021 the Group purchased 100% of the share capital of
Kbiosystems Limited ("Kbio"). Kbio is based in Basildon, UK and specialises
in the design and manufacture of laboratory instruments, with particular
expertise in automated microplate handling systems.
The total maximum consideration is £6.9 million; consisting of initial,
deferred and contingent consideration.
£3.0 million was paid in cash on acquisition. Deferred consideration of
£1.3 million, representing cash acquired and a working capital adjustment,
was paid in June 2021. Management has forecast that payment of 100% of the
contingent consideration is the most probable outcome, of which £1.0 million
was earned in the period and also paid in June 2021. The balance is
contingent on Kbio meeting profit targets for the years ending 31 March 2022
and 2023. The remaining consideration has been discounted to £1.8 million
using a discount rate of 10%.
In the period since acquisition, the business has contributed £5.4 million of
revenue and £1.3 million of adjusted operating profit to the Group results.
The direct costs of acquisition charged to the income statement were £0.1
million and are disclosed as adjusting items in note 1. Had the acquisition
been consolidated from 1 December 2020, the income statement would show
revenue of £148.7 million and adjusted operating profit of £16.4 million.
The following table sets out the initial consideration, together with the fair
value of assets acquired and liabilities assumed:
Total
Purchase consideration: £'000
Initial cash consideration 3,000
Deferred cash consideration 1,274
Contingent consideration 2,646
Total purchase consideration 6,920
Fair value of net assets acquired (below) (3,831)
Goodwill 3,089
Fair value
Fair value of identifiable assets acquired and liabilities assumed: £'000
Property, plant and equipment (including right-of-use-assets) 519
Customer order book and relationships (included within intangible assets) 2,232
Inventory 822
Trade and other receivables 1,110
Cash 1,306
Lease liabilities (407)
Trade and other payables and tax liabilities (1,751)
Fair value of net assets acquired 3,831
Purchase consideration settled in cash 5,274
Cash acquired (1,306)
Net cash outflow on acquisition 3,968
An independent valuation of the identifiable intangible assets has been
carried out in the period. Acquisition-related intangible assets comprise
the customer order book of £0.1 million and customer relationships of £2.1
million.
The goodwill is attributable to the non-contractual relationships, the
synergies between the business acquired and the operations of the Group and
the potential to develop the technologies acquired. None of these meet the
criteria for recognition of intangible assets separable from goodwill. The
goodwill recognised is attributable to the Laboratory division and is not
expected to be deductible for income tax purposes.
The fair value of trade and other receivables of £1.1 million includes net
trade receivables of £0.9 million, all of which is expected to be
collectible.
7. Provisions
Dilapidations Warranty Total
£'000 £'000 £'000
At 30 November 2020 268 4,365 4,633
Acquired - 130 130
Charged/(credited) to the consolidated income statement:
- Unwinding of discount 28 - 28
- Warranty release - (896) (896)
- Warranty charge - 971 971
Utilised:
- Warranty - (194) (194)
Exchange - (4) (4)
At 30 November 2021 296 4,372 4,668
Dilapidations Warranty Total
£'000 £'000 £'000
At 30 November 2019 242 9,526 9,768
Charged/(credited) to the consolidated income statement:
- Unwinding of discount 26 - 26
- Warranty release - (5,091) (5,091)
- Warranty charge - 652 652
Utilised:
- Warranty - (720) (720)
Exchange - (2) (2)
At 30 November 2020 268 4,365 4,633
Provisions arise from potential claims on major contracts, sale warranties,
and discounted dilapidations for leased property. The amount charged in the
year of £971,000 arose on additional sales made and long-term projects
delivered in the year. The amount released in the year of £896,000 follows
management's latest estimate of the expected costs to be incurred under
warranty.
2021 2020
Analysis of total provisions £'000 £'000
Current 4,372 4,365
Non-current 296 268
Net book value at 30 November 4,668 4,633
8. Contingent liabilities
At 30 November 2021, the Group had the following advanced payment bonds
(relating to monies received in advance on contracts) and performance bonds:
$'000 €'000
Advanced payment bonds - 320
Performance bonds 2,549 811
At 30 November 2021 2,549 1,131
$'000 €'000
Advanced payment bonds - 162
Performance bonds 2,549 842
At 30 November 2020 2,549 1,004
$2,520,000 (2020: $2,520,000) of the performance bonds relate to the contracts
for filtration systems provided for gasification projects. These projects
are being commissioned, a process which is taking several years. The Group
has provided its best estimate of the amount of any potential loss arising
from rectification and claims arising on these contracts within the £4.4
million warranty provisions disclosed in note 7. The maximum potential
unprovided exposure under these contracts is limited to £10.3 million. The
uncalled performance bonds are expected to be called or released no later than
December 2024.
9. Notes to the cashflow
Cash generated from operations
2021 2020
£'000 £'000
Operating profit 15,842 12,557
Adjustments for:
- Post-employment benefits (1,585) (1,288)
- Payment Protection Program loan waiver (1,337) -
- Fair value movement of derivatives through profit and loss 43 (10)
- Share-based payments 247 89
- Depreciation of property, plant and equipment and amortisation of
intangibles
3,662 3,706
- Depreciation of right-of-use assets 2,138 2,055
- Impairment of property, plant and equipment 195 2,261
- Impairment of right-of-use assets 150 -
- Loss on disposal of property, plant and equipment and intangibles 68 162
Operating cash flows before movement in working capital 19,423 19,532
Changes in working capital (excluding the effects of exchange differences on
consolidation):
Increase in inventories (476) (276)
Decrease in trade and other receivables 215 4,139
Increase/(decrease) in trade and other payables (256) (5,084)
Decrease in provisions (282) (5,091)
Decrease in working capital (799) (6,312)
Cash generated from operations 18,624 13,220
10. Basis of preparation
The results for the year ended 30 November 2021 have been prepared in
accordance International Accounting Standards in conformity with the
requirements of the Companies Act 2006 and International Financial Reporting
Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in
the European Union. The financial information contained in this announcement
does not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The financial information has been extracted from the
financial statements for the year ended 30 November 2021, which have been
approved by the Board of Directors and on which the auditors have reported
without qualification. The financial statements will be delivered to the
Registrar of Companies after the Annual General Meeting. The financial
statements for the year ended 30 November 2020, upon which the auditors
reported without qualification, have been delivered to the Registrar of
Companies.
11. Annual general meeting
The Company's Annual General Meeting will be held at 11.00 a.m. on Thursday 14
April 2022 at the offices of Buchanan Communications, 107 Cheapside, London,
EC2V 6DN.
12. Related parties
There were no related party transactions in the year ended 30 November 2021
other than Directors' compensation.
13. Responsibility Statement
Each of the Directors confirms, to the best of their knowledge, that:
· the financial statements, on which this announcement is based,
have been prepared in accordance with applicable law and International
Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002
as it applies in the European Union, and give a true and fair view of the
assets, liabilities, financial position, and profit or loss of the Company and
the undertakings included in the consolidation taken as a whole; and
· the review of the business includes a fair review of the
development and performance of the business and the position of the Company
and the undertakings included in the consolidation taken as a whole, together
with a description of the principal risks and uncertainties that they face.
The Directors of Porvair are listed in the Porvair Annual Report for the year
ended 30 November 2020. A list of current Directors is maintained on the
Porvair plc website, www.porvair.com (http://www.porvair.com) . Since the
publication of the Annual Report for the year ended 30 November 2020, James
Mills has joined the Group as Group Finance Director. This followed the
decision by Chris Tyler to step back from his position as Group Finance
Director and continue, in a part-time role, as Company Secretary. Both
changes became effective following the Company's AGM in April 2021.
Copies of full accounts will be sent to shareholders in March 2022.
Additional copies will be available from www.porvair.com.
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. END FR KBLFXLFLZBBZRecent news on Porvair
See all newsREG - Porvair PLC - Director/PDMR Shareholding
AnnouncementREG - Porvair PLC - AGM Results Announcement
AnnouncementREG - Porvair PLC - AGM Trading Update & Board Update
AnnouncementREG - Porvair PLC - Director resignation
AnnouncementREG - Porvair PLC - Director declaration
Announcement