Interim Results - Part 1

Porvair PLC
28 June 2000


PART I

For further information contact :

Porvair plc
Ben Stocks, Chief Executive
Mark Moran, Group Finance Director
                    today                  0207 466 5000
                    at all other times     01553 761111

Buchanan Communications
Charles Ryland/Catherine Miles             0207 466 5000

                    PORVAIR plc ('Porvair')
                               
     INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MAY 2000

Porvair, the advanced materials company, announces interim
results for the six months ended 31 May 2000.

KEY POINTS

*  Profit before tax and goodwill up 49% to £2.0m (1999 :
   £1.4m)

*  Greater   focus  on  core  activities  following   1999
   restructuring - sales revenues on a like-for-like basis up 7%

*  Interim dividend increased by 4% to 2.4p (1999 : 2.3p) -
   cover increased to 2.3 times

*  Creation  of  a  new business unit,  Porvair  Fuel  Cell
   Technologies

*  Award  of  US$650k  grant under  the  US  Department  of
   Energy's  'Industries of the Future' programme in May 2000

*  Net borrowings  £10.4m down from £13.0m in 1999

John Morgan, Chairman, said :

'As  anticipated, good progress has been made in  the  first
half.  Like-for-like  sales  have  increased  and   we   are
optimistic this will continue for the remainder of  the  year.
Improving  operating margins and sales of  new  products  will
ensure  further  progress.  The second  half  is  expected  to
benefit as a result.'

                     Chairman's Statement

I  am  pleased to report that the Group achieved strong profit
growth  of  49% in the first half of 2000, with profit  before
tax  and  goodwill  amortisation  of  £2,023,000   (1999 :
£1,361,000). This is a good result, driven by our strategy  of
developing  materials  technology and  continuously  improving
operational  efficiency. On sales of £31.7m  (1999  :  £30.7m)
operating  profit before goodwill amortisation is  up  38%  at
£2,422,000  (1999:  £1,756,000).  Sales on  a  like-for-like
basis,  excluding products discontinued during the first  half
of 1999, are up by 7%.

Trading improved and margins benefited from a lower cost  base
following  our  restructuring  programme  of   early   1999.
Management's continued attention to new product development in
areas  where we see significant technical advantage  supports
our  positive medium term outlook. The gathering  together  of
various fuel cell related test programmes under a new business
unit - Porvair Fuel Cell Technologies  - is a good example  of
this.

Management  has  maintained  focus  on  cash  generation.  Net
borrowings at the end of May were £10.4m, down from £13.0m  at
the  same  point  last  year. The main movements  in  our  net
borrowings  position  since November 1999  have  been  capital
expenditure of £1.4m; cash generated from operations of £2.4m;
and  an  increase in sterling denominated dollar  debt  -  due
entirely  to  exchange rate movement  -  of  £0.5m.   The  net
interest payable remains unchanged, with lower average  levels
of  net  borrowings  being offset by higher  average  interest
rates than in the first half of last year.

The  Directors have declared an interim dividend of  2.4p  per
ordinary share (1999 : 2.3p) which is an increase of  4%  over
the  previous year.  With earnings per share of 5.5p  (1999  :
3.7p)  the  dividend  is  covered 2.3  times  before  goodwill
amortisation.   This  level  of cover  is  in  line  with  the
dividend payment policy that I outlined in my last report.

As anticipated, good progress has been made in the first half.
Like-for-like sales have increased and we are optimistic  this
will  continue  for  the  remainder of  the  year.   Improving
operating  margins  and  sales of  new  products  will  ensure
further progress. The second half is expected to benefit as  a
result.

John Morgan, Chairman
28 June 2000



                      Operational review

Porvair  is an advanced materials Group specialising  in  four
technologies :


      *  Polyurethane membranes      *  Advanced ceramics
                     
      
      *  Acrylic materials           *  Sintered materials
                                  
These  four  materials technologies approach specific  markets
through six operating companies.  Details of each company  can
be  found  at  the  end  of this statement.   In  all  of  our
activities  we  look for clear technical edge,  strong  market
presence and significant opportunities for profitable growth.

The  first half of 2000 has seen further progress for Porvair,
with profit before tax and goodwill amortisation increasing by
49% to £2.0m  (1999 : £1.4m). Compared with the same half last
year,  during  which a restructuring programme was  completed,
the  Group  is  more  focused on  its  core  activities.    In
addition,  close  attention  to  working  capital   has   kept
operating cash flow under control.

As advised previously, the number one priority for the Porvair
management  team is the building of shareholder value  through
the  development of our materials technology.  In this  regard
it  is  encouraging  to  report significant  progress  in  our
advanced ceramics business, Selee, which has been particularly
active over the last 2-3 years in developing materials for the
emerging  fuel cell industry. We have now drawn together  this
activity  into  a new business unit called Porvair  Fuel  Cell
Technologies ('PFCT').  Fuel cells are fast developing and use
a  variety  of microporous materials.  Porvair's expertise  in
microporosity is helping to find innovative solutions  to  the
problems encountered by fuel cell developers, particularly  in
heat  exchange,  catalyst  media,  emission  control  and  air
humidification  applications.  Most commentators  expect  fuel
cells to become commercial around 2004/5, and this market is a
very  exciting  medium  term  prospect  for  the  Group.   Our
materials    expertise,   intellectual   property    position,
manufacturing  efficiency and Ford quality accreditation  will
position us well as fuel cell energy emerges.

Consumer division

This  division develops, manufactures and markets polyurethane
membranes.  It  was extensively restructured  early  in  1999,
focusing more on membrane manufacture and development and less
on  distribution,  thereby  reducing  overall  sales  volumes.
However we are encouraged by underlying rates of growth in key
product  areas in this business and by the prospects  for  the
second half.  Sales of our Porelle range of products grew  31%
in   the   period,  with  waterproof/breathable  fabrics   for
institutional  applications showing encouraging  growth.   Our
Sealskinz  range is developing well and we are  preparing  for
the  launch  of  a second generation waterproof  sock  product
later  in the year.  We have further strengthened our  Permair
leather business in North America  by consolidating operations
and  have launched new product ranges aimed at children's  and
casual footwear.

Operating  profit  for  this division was  in  line  with  our
expectations at £0.9m from sales of £14.6m.   We are  underway
with  a substantial investment in process improvement to  lift
manufacturing  efficiencies  in  our  membranes  business  and
expect to see margins improve over the remainder of the year.

Filtration division

This division saw sales increase to £17.1m (1999 : £15.8m),  a
rise  of 8%; and a significant operating profit uplift of  91%
to £1.5m (1999 : £0.8m).

The largest business in this division is the advanced ceramics
operation  based  in the US - Selee.  Sales in  this  business
were  up  17%, partly from robust demand in core markets,  and
partly  from continued progress from new product areas -  high
value  metal  filtration materials, aluminium consumables  and
microporous  ceramics.  We  have  made  better  than  expected
progress  in materials development in this area, buoyed  by  a
series of intellectual property licences entered into over the
last  9  months,  and whilst this business is still  primarily
associated  with  its traditional aluminium and  iron  foundry
markets, higher value-added markets are developing fast. It is
this   materials  development  progress,  allied  to  a  sound
manufacturing base, that underpins our long term  expectations
for Porvair Fuel Cell Technologies.

Our  acrylic material business, Porvair Ceramic Moulds in  the
UK,  is  in  a  recovery year and after a period of  difficult
trading  it  is encouraging to report a marked improvement  in
performance  and  prospects.   We  reported  last   year   the
formulation of two new mould chemistries; one - for  tableware
applications  -  has  started commercial sales  in  the  half,
whilst  the  other, for more complex hydrophilic  casting,  is
undergoing extensive customer tests in partnership with two of
the  world's  largest sanitaryware manufacturers.  Replacement
mould  sales for our pressure casting business has been steady
through  the first half and we are in the process of launching
a proprietary technology for the semi-automatic manufacture of
lavatories.   This unique technology, for which  patents  have
been filed, will address an entirely new market segment and is
a  good example of the sort of technical innovation Porvair is
capable of undertaking.


Our  sintered  materials businesses have traded  well  in  the
first  half  and  are in line with our expectations.   Porvair
Sciences  continues strongly, with a steady stream of  product
line  extensions coming to market. For Porvair  Technology  we
signalled  in  the last report our intention  to  refocus  our
marketing  effort  on  proprietary  applications.    This   is
underway,  and whilst we do not expect significant  growth  in
the  current  year,  project  flow  is  strong  and  prospects
encouraging.

New product development

Our  emphasis  on new product development remains  clear.   In
addition to a number of developments outlined above,  and  the
intellectual property licences signed in 1999, we have further
added  to  our materials technology stable with a  licence  to
manufacture  and  market  open pore metal  foams.   This  will
enhance  our  emissions  control and  catalyst  media  product
ranges.  In March the US patent office granted us a patent for
our  aluminium salt filter.  Following this, the US Department
of  Energy  awarded  Selee  a  US$650,000  grant  under  their
'Industries of the Future' programme to commercialise the salt
filter  in  partnership  with the  world's  leading  aluminium
company.

Capital expenditure

Capital  expenditure  was £1.4m (1999  :  £2.7m).   Full  year
expenditure is expected to reach a similar figure to  1999  of
between  £4.0-4.5m as, in particular, projects  at  Selee  are
progressed.  These projects relate to a significant  upgrading
in production facilities to improve manufacturing efficiencies
and the development of the emerging fuel cells business.
PORVAIR AT A GLANCE

Porvair  is  an  innovative  advanced  materials  group.    We
specialise   in  polyurethane  membranes,  acrylic,   advanced
ceramic and sintered materials.  The Group is organised  under
two divisions - Consumer and Filtration.

Material          Locations      Employees  Activities

*  Consumer 
   division                                        
     Polyurethane Kings's Lynn,     282     Specialises in  
     membranes    UK, Acton,                polyurethane    
                  Canada                    membranes that
                  China (50:50 JV)          enhance the     
                  Acton,                    performance of 
                      Canada                leather and
                      China                 textiles to make
                      (50:50 JV)            them waterproof
                                            and breathable.
* Filtration                       
  division

  Advanced       Hendersonville,    224     Brings ceramic
  Ceramics       USA                        expertise to the
                                            field of molten
                                            metal handling,
                                            catalyst media and
                                            thermal processing.
                                            World leader in
                                            aluminium filtration.

  Acrylic       King's Lynn         45      Supplies
  materials                                 sanitaryware and
                                            tableware
                                            customers
                                            worldwide with
                                            long-life
                                            alternatives to
                                            traditional
                                            moulding media.
  Sintered                       
  materials:
 
   - filtration  Wrexham, UK       84       Develops innovative
                                            sintered metal and
                                            polymer solutions
                                            to filtration
                                            problems.

  - sciences     Shepperton, UK    15       Specialises in
                                            assay equipment
                                            and other microplate
                                            products for the
                                            Life Sciences
                                            market.

MORE TO FOLLOW