Porvair Share Discussion Threads

[stonethecrow] 28/1/2012 18:47

Best results for Porvair thanks

[stonethecrow] 28/1/2012 18:00

Best to read this
Pre-close trading update

Porvair plc ("Porvair")

Pre-close trading update and acquisition

Porvair, the specialist filtration and environmental technologies group, makes the following announcements regarding trading for the year ended 30 November 2011 and an acquisition by its Seal Analytical ("Seal") subsidiary:

Porvair traded well in the final quarter of 2011 and the Board expects to report results ahead of expectations for the year. Revenues for the year, at constant exchange rates, are expected to be 9% higher than the prior year and profit before tax is expected to be substantially ahead. Strong cash flows have reduced net borrowings by more than 40% compared with the prior year to below GBP5.5m.

Revenue at the Metals Filtration division, at constant currency, will be over 15% higher than the prior year. Operating profit has improved significantly compared with the prior year due to revenue growth and higher margins derived from new products that have been introduced in recent years.

Revenue at the Microfiltration division, at constant currency, will be around 5% higher than the prior year. Aviation filtration revenue grew strongly in the year and order books for 2012 are encouraging. Seal has traded satisfactorily in the second half with revenues in line with the prior year.

Underlying order books across the Group for the first quarter of 2012 are healthy with the recently announced order from POSCO taking the current order book to record levels.

On 5 December, Seal acquired a complementary product line from Aim Lab Automation Technologies Pty Ltd. The acquisition will add a line of block digestion instruments and consumables to Seal's range of water quality analysis products and will be sold through Seal's existing distribution and sales channels. Production and customer service will be transferred to Seal's facility in Wisconsin. This small transaction is expected to contribute to Group profitability from acquisition.

Porvair will announce its preliminary results for the year ended 30 November 2011 on Tuesday 31 January 2012.

[stonethecrow] 28/1/2012 14:08

HI 333DANS AND GARGOYLE2

[333dan] 26/1/2012 07:03

Decent volume yesterday with some nice large buys. Interest is returning with only a few days until the results are announced

[333dan] 25/1/2012 14:43

Yes I agree. Would be nice to see a new trading range in the 120s soon

[gargoyle2] 25/1/2012 03:37

Last update from the company was very positive. I'm looking for it to get back around the previous high at 120 within the next 2 months.

[333dan] 24/1/2012 17:18

Does anyone on here have any share price predictions in the coming weeks and months?

[bookbroker] 20/1/2012 11:00

This co. must work harder to improve its margins, it is getting a miserly return on its ROE.

[bookbroker] 19/1/2012 11:10

Just irritating having that Italian concern holding such a sizeable stake, Why they acquired it in the first place without ever using it as a pre-cursor to a bid surprises, difficult to find any real info. on who and what they are, what it does do though is put a degree of uncertainty over the share, maybe it's strategic, maybe just an investor who saw value, but it is more a hindrance than an asset.

[333dan] 19/1/2012 10:28

Strong results for the year to be released on the 31st January. See RNS from 6th December which indicates the positivity:

Net debt expected to be reduced 40% from previous year. Revenues 9% higher therefore profits to be "substantially" ahead of expectation.

Expect to see a steady climb between now and then and a perhaps a re-rating of this share.

PRV is a strong company which I believe has been overlooked by the market.

DYOR

[bookbroker] 15/1/2012 20:35

Time this was re-rated to reflect that high cash conversion, this co. is one of the few technologically successful cos. in the world in terms of filtration products, it deserves to be recognised for its work in this field.

[lurki0] 14/1/2012 14:05

Thanks for that bb, interesting to know.

[bookbroker] 13/1/2012 10:16

Without sounding too simplistic cash flow is an income issue and debt a balance sheet item, more importantly cash flow is a reflection of the health of the business as enables the business to re-invest in itself. What they have been able to do is generate more cash over and above than is required for the purposes of re-investment thus allowing them to reduce the balance of debt, at some point sure they will wish to expand the business either by acquisition or technological investment using the cash generated through cash flow thereby enhancing shareholder returns.

[pedr01] 13/1/2012 09:45

Daniel Stewart initiated coverage of Porvair with a "buy" recommendation
and 110p target price. The broker says that the air
filtration company has a high cash conversion rate and a diversified product
range. Daniel Stewart adds that the group benefits from recurring revenues from
clients as the consumable nature of many of its products means that they need to
be replaced once used. The group is reducing its net debt, which stood at 16.4
million pound in 2008 and the broker expects it to stand at just 5.5 million
pounds by the end of the 2011 financial year. Porvair shares dropped 1.5p to
92p.


A Questions for the more knowledgable amongst you...

The debt reduction from £16.4m to £5.5m in 3 years, equates to £3.6m per year and at this rate debt will be fully paid off within 2 years.

Assuming we can keep up the rate of debt reduction, once the debt is fully paid off, does the cash flow directly to profit ??

Or am I being very naïve ...

[lurki0] 10/1/2012 17:49

1.1m shares traded today. Encouraging.

[bookbroker] 09/1/2012 21:30

Chances are the current weakness is somewhat dollar related, filtration equipment used significantly in aerospace markets, so currency issues having a dampening effect on share price.

[lurki0] 09/1/2012 20:04

Day to day this market is serially inexplicable. PRV is steadily exploiting a very profitable niche: take the medium to long term view.

[whymps2] 09/1/2012 16:34

I couldn't agree more. All news has been positive and yet we see S.P gradually lose 10% in a sideways market. Please explain?!

[gleach23] 09/1/2012 12:39

seems so gargoyle...i like the look of the chart and what with the recent trading update too, i bought back in today

[gargoyle2] 09/1/2012 10:46

Buyers in here today. Has to be good value at this level imo.

[shauney2] 05/1/2012 09:37

I agree.Thought this would go higher after a very positive update.Results the end of the month we know will be positive.Another tick up in the divi i expect.

[tratante] 04/1/2012 11:28

shame this has stalled it was going along quite nicely. expected a bit of consolidation but that it would sink back so far after such good results.

[samenic] 06/12/2011 20:31

Have only a relatively small holding primarily because it seems to have a rather high rating already at this level,would look to add if we come somewhat lower.

[lurki0] 06/12/2011 20:21

Was hoping for a little drop at the death to reload. But there was no drop. Therefore I'll have to pony up full whack tomorrow. Oh well, a month from now I'm sure tomorrow's price will seem pretty cheap.

[interceptor2] 06/12/2011 09:55

I brought in after reading the very strong trading update this morning. Have just finished my initial research now, and like the look of this company very much.

Everything is moving in the right direction. Another ahead statement and I noticed they said revenue to be 9% ahead but PBT substantially ahead, which should be significant.

As you have said owenski, the net debt position continues to fall. And the next results haven't seen the benefits of the large Posco contract win, which isn't due to start until early 2012.

A few more wins like that, and earning here would really take off imo.

ic2...