Porvair expect profits to be higher following growth in aerospace and industrial unit

Porvair PLC (LON:PRV) have told the market that they expect profit to be higher in their recent financial year, however shares are in red.

Shares in Porvair trade at 760p (-3.31%). 3/2/20 13:41BST.

The firm said that it saw a substantial rise in its aerospace and industrial unit revenue, which contributed to the strong trading across its recently ended financial year.

Describing their aerospace and industrial unit division the firm said:

“The Aerospace & Industrial division designs and manufactures a wide range of specialist filtration products, demand for which grows as aerospace and industrial customers seek cleaner, safer or more efficient operations.”

In its financial year ended November 30, the filtration and environmental technology firm’s pretax profit rose 17% to £14.0 million from £12.0 million.

Revenue surged by 12% to £144.9 million from £128.8 million. This revenue rise was particularly led by Porvair’s Aerospace & Industrial division, where revenue jumped 28% at £64.7 million from £50.5 million.

Shareholders will be pleased as the firm recommended a final dividend of 3.2 pence per share, which sees a 6.7% climb from 3 pence year on year.

Ben Stocks, Chief Executive, said:

“These results demonstrate the benefits of Porvair’s strategy. Some segments have grown in 2019, others have maintained momentum through operational improvements. 2020 is likely to be similar. The Group’s fundamentals are robust.

Over the last ten years, Porvair has delivered revenue growth of 162% (10% CAGR). The Group is positioned to benefit from global trends: tighter environmental regulations; growth in analytical science; the expansion of air travel; the replacement of plastic by aluminium; and the drive for manufacturing process efficiency. These trends offer opportunities for which the Group develops differentiated products. Trading in 2020 has started well, order books are healthy and investment plans are on track. Recent acquisitions are trading as expected. The Group is looking forward with confidence.”

Porvair have remained confident to deliver results to shareholders in the future, and their growth strategy looks to be settling in well with the overall direction of the firm.

Porvair forecasted saying that “These results demonstrate the benefits of Porvair’s strategy. Some segments have grown in 2019, others have maintained momentum through operational improvements. 2020 is likely to be similar. The Group’s fundamentals are robust. Over the last ten years, Porvair has delivered revenue growth of 162% (10% CAGR).

The Group is positioned to benefit from global trends: tighter environmental regulations; growth in analytical science; the expansion of air travel; the replacement of plastic by aluminium; and the drive for manufacturing process efficiency. These trends offer opportunities for which the Group develops differentiated products. Trading in 2020 has started well, order books are healthy and investment plans are on track. Recent acquisitions are trading as expected. The Group is looking forward with confidence.”

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