Porvair (PRV) H1 2024 earnings summary

Executive summary

• Revenue increased 5% to £94.6m, with 8% growth at constant currency, driven by acquisitions and strong aerospace and petrochemical demand, offsetting industrial and laboratory consumables weakness and FX headwinds.

• Adjusted operating profit rose 2% to £12.5m, while adjusted profit before tax fell 3% to £11.5m; adjusted EPS declined 4% to 19.5p, reflecting margin pressures and market variability.

• Net cash at period end was £4.1m after £12.7m invested in acquisitions and CapEx, notably the EFC acquisition.

• Interim dividend increased 5% to 2.1p per share; Board expects a healthy second half with strengthening order books and positive outlook into 2025.

• Business operates in three divisions: aerospace & industrial, laboratory, and metal melt quality, with consistent market drivers and a strong installed base advantage.

Financial highlights

• Group revenue reached £94.6m, up 5% year-over-year; at constant currency, growth was 8%.

• Adjusted profit before tax was £11.5m, down 3% year-over-year; adjusted EPS was 19.5p, down 4%.

• Operating profit rose 2% to £12.5m, with margins above 13%.

• Net cash at period end was £4.1m after £12.7m spent on acquisitions and CapEx.

• Interim dividend increased 5% to 2.1p.

Outlook and guidance

• Management expects stronger performance in H2 2024, with order books improving and lead times normalizing.

• Aerospace and petrochemical segments expected to remain strong into 2025; consumables demand showing early signs of recovery.

• Large petrochemical orders anticipated to ship at year-end and into early 2025.

• Patchy demand expected in Lab and Industrial consumables; management expresses confidence for 2025.