Porvair PLC Pre-close trading update and acquisition (1185I)

TIDMPRV

RNS Number : 1185I

Porvair PLC

07 December 2015

 
 For immediate release   7 December 2015 
 

Porvair Plc

Pre-close trading update and acquisition

Porvair ("Porvair" or "the Group"), the specialist filtration and environmental technologies group, makes the following announcement regarding trading for the year ended 30 November 2015 ahead of its close period and announces the acquisition of the business of TEM Filter Company ("TEM").

Trading update

Porvair has continued to trade well throughout the year. Underlying revenues (1) for the year ended 30 November 2015 are 8% higher than the prior year and earnings are expected to be ahead of current market expectations. Order books for the start of 2016 are healthy.

As expected and previously reported, the unusually high revenues recognised from several large projects in the prior year were not repeated in 2015. Total revenues are therefore 7% lower than the prior year. Build and commissioning work for the large projects is going well.

Underlying revenues in the Microfiltration division were 10% ahead of the prior period. Revenues in the Metals Filtration division grew 3% although, following a record prior year, in constant currency, revenues were 4% lower.

Strong operating cash flow increased net cash above GBP10m at the year end, achieved despite capital investments of GBP4.5m, mostly spent on bringing new facilities into operation. New plants in the UK and USA were opened in the first half. Production in the expanded China facility has now started. Further investment in US industrial filtration capacity has started and will be complete in 2016.

Acquisition

On 4 December 2015, the Group's Microfiltration division acquired the goodwill, business and trading assets of TEM. TEM, based in Boise, Idaho, designs and manufactures filters for the microelectronics industry. The Board sees a very good fit between this business and the Group's Microfiltration operations. The transaction, which is for cash, is expected to be modestly earnings accretive.

Porvair will announce its preliminary results for the year ended 30 November 2015 on Monday 25 January 2016.

   Note (1)   Underlying revenue: Revenue excluding the impact of large projects. 

For further information, please contact:

 
                                 01553 765 
 Porvair plc                      500 
 Ben Stocks, Chief Executive 
 Chris Tyler, Group Finance 
  Director 
                                 0207 466 
 Buchanan Communications          5000 
 Charles Ryland / Steph 
  Watson 
 

Notes to editors

Porvair plc

Porvair is a group of specialist filtration and environmental technology businesses. Its products are used in a range of niche filtration markets, and are derived from its expertise in the design and manufacture of filtration systems using ceramic, metal, plastic and carbon media. Its Seal Analytical business is a market leader in the manufacture of laboratory based water analysis equipment.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 07, 2015 02:00 ET (07:00 GMT)