Despite mixed performances from different sectors filtration technology supplier Porvair (LON: PRV) improved margins and profit in the year to November 2026. Porvair’s wide spread of markets offset weakness in some areas. Porvair has a good growth record and is involved in growing markets.
Full year revenues edged up 1% to £194m, while pre-tax profit improved from £22.7m to £25.1m. the total dividend was raised from 6.3p/share to 6.7p/share. That is more than six times covered by earnings.
The improvement in profit came from the laboratory, helped by strong environmental demand, and metal melt quality divisions, even though the latter had lower reported revenues due to currency movements.
The aerospace and industrial division maintained its profit on slightly lower revenues. There are signs that industrial demand may recover and areas such as nuclear are doing well.
The aerospace market is set to grow at 4%+ annually and the aluminium market at a similar rate. The environmental market is likely to grow even faster.
Cash generation remains strong and more than covers capital investment and the dividend. Net cash was £22.9m at the end of November 2025.
At the beginning of the year, Porvair paid €20.5m for Drache, which fits well with the metal melt quality division. It increases exposure to Europe and while it is profitable there is scope to improve margins.
The share price has risen 9p to 869p, which is just over 20 times earnings. That reflect the growth sectors that Porvair is involved in and the strong tract record. The benefits of the latest acquisition may not show through this year, but it should provide a long-term boost and there is potential for further acquisitions.