Porvair’s Interim Results


This post is focusing on today’s interim results. If you want the full analysis on Porvair, click HERE.

Porvair has recorded half-year revenue of £55.5m, which is 7% higher than the last interim results. Over a four-year period, Porvair it grew by 45% and average that was 9%.

Looking at their divisional breakdown, their biggest division “Microfiltration” is growing by 3% (not helped by the weak British Pound), while “Metals” is up 14% (helped by the weak British Pound). 

The same thing can be said about its profits:

Operating profits grew by 53% in the past four years with an average growth of 11.2%.


Here is the five-year interim change on Porvair’s cash balance:

The company is steadily growing their cash with this year seeing the fastest growth, however, as mentioned it was helped by borrowings of over £7m.

But, Porvair saw net cash slashed by 40% from £7.2m to £3.9m.


Here is the change in cash profits: 

Despite, profits growth, the company’s cash earnings have fallen for two years! Well, this year saw some financial data turned against Porvair.

First, it reported a £898k in hedging losses.

Second, their trade payables saw cash outflow of £1.7m, compared to last year cash inflow of £779k, despite the business growing.

Third, the company’s provision turned from a positive £1.37m to a negative £624k.

Fourth, the company paid £800k more in taxes to keep tax liability at a stable level.


Acquisition of J. G. Finneran Associates, Inc

The total consideration was $11,951,000 (£9,602,000); $5,951,000 (£4,781,000) of this was paid on 4 April 2017, with the balance being contingent and due for payment in two equal instalments, one and two years after the purchase date.


Porvair has met the bulk of the initial acquisition costs with the rest being paid in two annual installations.


During the announcement of this acquisition, it was considered to be an initial purchase of £6.4m and a maximum payable of £4.8m over two years, which management now say is the most probable outcome.


We don’t know how this effect future revenue until they report their results. The ONLY takeaway is the goodwill portion comes to £7.2m, that is 75% of total consideration!!


This post relates to Porvair’s Interim results. For the full-year analysis, please click Here.