Trading update

RNS Number : 4289D

Porvair PLC

02 December 2009

 



For immediate release                                                                                      2 December 2009

Porvair plc ("Porvair" or "The Group")

Trading update

Porvair, the specialist filtration and environmental technologies group, makes the following update regarding trading in the year ended 30 November 2009:

The Board expects to report results in line with expectations for the year. In what has been a very difficult economic environment, Porvair expects to not only achieve its sales and profit targets but to exceed its cash generation expectations.  Net debt is anticipated to be better than expectations and to have reduced by over £2m in the year to less than £14.5m.

Microfiltration

The Microfiltration division, which serves the aviation, energy, clean water and industrial markets, has continued to trade as expected.  Seal Analytical, acquired in 2008, has had a good first full year in the Group; generating improved profits and an attractive cash return. Before the impact of the 2008 Seal acquisition, like-for-like divisional sales for 2009 are expected to be around 10% lower than the prior year - a resilient performance in challenging circumstances.  The Microfiltration division has a good near term pipeline of orders.

Metals Filtration

As previously reported, Selee Corp., the largest part of the Metals Filtration division, underwent a severe restructuring programme in the second quarter in response to market demand that fell on average by 35%.  One-off restructuring costs were reported in the interim statement in June 2009.  Since these actions, Selee has returned to modest profitability and generated cash.  In the final quarter of the year sales per day have improved, with aluminium filter demand benefiting from the 80% of current customers who have now switched to a new proprietary filter developed by Selee.  

Outlook

Looking ahead, the Board’s planning assumption is that the difficult economic climate will continue throughout 2010, however the near term order book is encouraging. The Board’s view is that the steady improvement in Selee’s trading; the market acceptance of its new proprietary aluminium and iron foundry filters; a strengthening order book in Microfiltration; and the Group’s proven cash generating ability give grounds for cautious optimism.  The Board does not believe that the recent share price weakness reflects this.

The Company will be announcing its preliminary results for the year ended 30 November 2009 on Tuesday 26 January 2010.

For further information, please contact:

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

 

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