Porvair H1 profits slightly lower, headline revenues rise

Porvair said revenues had grown 5% to £94.6m. However, when stripping out the benefit of acquisitions, constant-currency underlying sales were 3% lower year-on-year as industrial and laboratory consumables markets adjusted to lower inventory levels and more normal lead times through 2023 and into 2024.

The London-listed group stated adjusted operating profits were up 2% at £12.5m but said pre-tax profits and basic earnings per share were both 6% weaker at £10.6m and 18.1p, respectively.

Net closing cash also fell to £4.1m, down from £19.7m a year earlier, as the group invested £12.7m in capital expenditure and acquisitions.

Porvair also revealed that it had would increase its interim dividend payment by 1.0p to 2.1p per share.

Chief executive Ben Stocks said: "2024 is unfolding as expected. Over the first six months, strength in aerospace and petrochemical markets, helped by the benefit of 2024 acquisitions, has offset weakness in industrial and laboratory consumables and foreign exchange headwinds. This has been in line with management expectations.

“The trading outlook for the second half of the year is positive. Order books across the group are strengthening with lead times now returned to more traditional levels. The benefits of the 2023 acquisitions continue to come through, and several larger petrochemical orders will start to ship towards the end of the year.”

As of 0905 BST, Porvair shares were up 2.42% at 676.0p.

Reporting by Iain Gilbert at Sharecast.com