Operating review

The Group achieved 3% revenue growth (5% constant currency) in H1 2025. Adjusted operating profit was 1% ahead of the prior period, impacted by product mix and foreign exchange headwinds. Cash generation was strong, leaving net cash of £17.1 million at 31 May 2025, having started the year with £13.7 million (£4.1 million in prior period).

Trading has been mixed across our end markets. We have experienced stronger demand in the petrochemical markets and laboratory instruments, while the auto, truck and agriculture markets were down. There has been a slower start in aerospace, however we have reassuring order visibility for the second half of the year. The benefit from the European Filter Corporation (EFC) acquisition in the prior year continues to come through. Inconsistency in trading patterns across the Group is not unusual. We serve a range of markets in different parts of the world and trading can be affected by both local and global events. We continue to monitor the current macro-economic uncertainty and tariff environment, noting that the Group's manufacturing footprint mainly serves local customers.

Despite this natural variation, Porvair benefits from underlying growth trends that have not changed: tightening environmental regulation; the growth of analytical science; the need for clean water; the development of carbon-efficient transportation; the replacement of plastic and steel by aluminium; and the drive for manufacturing process quality and efficiency. Our decentralised management structure is helpful in volatile trading conditions, enabling key commercial decisions to be made closer to customers and suppliers. The benefit of the Group's diverse operating spread is shown in the relatively consistent long-term track record, despite inconsistent demand across sectors.

Since joining the Group, I have visited our locations and met with our highly talented team across the business. I have been encouraged by our technical capabilities and the potential of the company, as it is facing end-markets with long-term growth potential. In order to enhance our execution and continue to build on strengths, we have formed an Executive Committee responsible for the management of the Group, consisting of the Executive Directors and key members of the senior leadership team, and have added a central resource to support M&A activities.

Financial summary

	H1 2025		H1 2024		Growth
	£m		£m		%
Revenue	97.7		94.6		3
Operating profit	11.9		11.6		3
Adjusted operating profit*	12.6		12.5		1
Profit before tax	11.3		10.6		7
Adjusted profit before tax*	12.0		11.5		4
	Pence		Pence
Earnings per share	19.0		18.1		5
Adjusted earnings per share*	20.0		19.5		3
	£m		£m
Cash generated from operations	10.2		7.1
Net cash	17.1		4.1

 

*See notes 1, 2 and 3 for definitions and reconciliations.

 

Strategy and purpose

Porvair's strategy and purpose have remained consistent for over 20 years, a period that now encompasses two recessions. The Group's record for growth, cash generation and investment is:

	5 years		10 years	15 years
Revenue CAGR*	6%		7%	8%
Earnings per share CAGR*	9%		9%	15%
Adjusted earnings per share CAGR*	8%		10%	15%
* Compound annual growth rate

 

	5 years		10 years	15 years
	£m		£m	£m
Cash generated from operations	112.7		182.6	235.6
Investment in acquisitions and capital expenditure	51.6		102.9	122.3

 

This longer-term growth record gives the Board confidence in the Group's capabilities and is the basis for capital allocation and planning decisions.

Strategic statement and business model

Porvair's strategic purpose is the development of specialist filtration, laboratory and environmental technology businesses for the benefit of all stakeholders. Principal measures of success include consistent earnings growth and selected ESG measures. The Group publishes a full ESG report at the time of the annual financial results.

The Group is positioned to benefit from global trends as outlined above.

Porvair's businesses have certain key characteristics in common:

·      specialist design, engineering or commercial skills are required;

·      product use and replacement is mandated by regulation, quality accreditation or a maintenance cycle; and

·      products are typically designed into a system that will have a long life-cycle and must perform to a given specification.

Orders are won by offering the best technical solutions or commercial service at an acceptable cost.  Technical expertise is necessary in all markets served. New products are often adaptations of existing designs with attributes validated in our own test and measurement laboratories. Experience in specific markets and applications is valuable in building customer confidence. Domain knowledge is important, as is deciding where to direct resources.

This leads the Group to:

·      focus on markets with long-term growth potential;

·      look for applications where product use is mandated and replacement demand is regular;

·      make new product development a core business activity;

·      establish geographic presence where end-markets require; and

·      invest in both organic and acquired growth.

Therefore:

·      we focus on three operating segments: Aerospace & Industrial; Laboratory; and Metal Melt Quality. All have clear long-term growth drivers;

·      our products typically reduce emissions or protect complex downstream systems and, as a result, are replaced regularly. A high proportion of our annual revenue is from repeat orders;

·      through a focus on new product development, we aim to generate growth rates in excess of the underlying market. Where possible, we build intellectual property around our product developments;

·      our geographic presence follows the markets we serve. In the last twelve months: 43% of revenue was in the Americas; 17% in Asia; 27% in Continental Europe; 11% in the UK; and 2% in Africa. The Group has plants in the US, UK, Belgium, Germany, Hungary, the Netherlands, India and China. In the last twelve months: 44% of revenue was manufactured in the US; 27% in the UK; 25% in Continental Europe and 4% in Asia; and

·    we aim to meet dividend and investment needs from free cash flow and modest borrowing facilities. In recent years we have expanded manufacturing capacity in the US, UK, Germany, Hungary and China, and made several acquisitions. All investments are subject to a hurdle rate analysis based on strategic and financial priorities.

Environmental, Social and Governance ("ESG")

The Board understands that responsible business development is essential for creating long-term value for stakeholders. Most of the products made by Porvair are used for the benefit of the environment. Our water analysis equipment measures contamination levels in water. Industrial filters are typically needed to reduce emissions or improve efficiency. Aerospace filters improve safety and reliability. Nuclear filters confine fissile materials. Metal Melt Quality filters reduce waste and help improve the strength to weight ratio of metal components. 

A full ESG report was published in February 2025 and is available on the Porvair plc website, setting out:

·      Porvair's ESG management framework and goals;

·      how energy transition and climate change might affect markets served by the Group, and how these trends affect our long-term planning framework;

·      ESG metrics and results; and

·      how the Group acted for the benefit of its stakeholders in 2024.

Divisional review

Aerospace & Industrial

	H1 2025		H1 2024		Growth
	£m		£m		%
Revenue	44.6		40.4		10
Operating profit	6.1		5.3		15
Adjusted operating profit*	6.5		5.9		10

 

*See notes 1 and 2 for definitions and reconciliations.

 

The Aerospace & Industrial division designs and manufactures a wide range of specialist filtration products, demand for which is driven by customers seeking better engineered, cleaner, safer or more efficient operations. Differentiation is achieved through design engineering; the development of intellectual property; quality accreditations; and customer service.

Revenue in the period increased by 10%. The demand for the petrochemical market increased by 23% and the contribution from EFC, acquired in the prior year, helped to offset the slower demand in US industrial consumables. Aerospace revenue was 8% lower, with reassuring order visibility for the second half of the year. Adjusted operating profit was impacted by product mix and foreign exchange headwinds.

 

Laboratory

		H1 2025		H1 2024		Growth
		£m		£m		%
Revenue		32.3		32.1		1
Operating profit		4.3		4.2		2
Adjusted operating profit*		4.6		4.5		2

 

*See notes 1 and 2 for definitions and reconciliations.

 

The Laboratory division has two operating businesses: Porvair Sciences (including Finneran, Kbiosystems and Ratiolab) and Seal Analytical.

·      Porvair Sciences manufactures laboratory filters, small instruments and associated consumables, for which demand is driven by sample preparation in analytical laboratories. Differentiation is achieved through proprietary manufacturing capabilities; control of filtration media; and customer service.

·      Seal Analytical supplies instruments and consumables to environmental laboratories, for which demand is driven by water quality regulations. Differentiation is achieved through consistent new product development focused on improving detection limits, and improving laboratory automation.

Revenue in the period was up 1%, driven by instrument sales for analytical and environmental laboratories, with steady demand for consumables. Several new product developments in Seal Analytical, Porvair Sciences and Kbiosystems were launched in the year, some of which have already gained good traction and early interest from the market, which should be good for the full year and beyond.

Metal Melt Quality

	H1 2025		H1 2024		Growth
	£m		£m		%
Revenue	20.8		22.1		(6)
Operating profit	3.3		3.5		(6)
Adjusted operating profit*	3.3		3.5		(6)

 

*See notes 1 and 2 for definitions and reconciliations.

 

The Metal Melt Quality division manufactures filters for molten aluminium, ductile iron and nickel-cobalt alloys. It has a well-differentiated product range based on patented products and extensive experience in melt quality assessment.

Revenue in the period fell by 6%. Adjusted operating profit reduced by 6%, with lower industrial demand within the auto, truck and agriculture market, which is a smaller part of our Metal Melt Quality business. This was partially offset with increased aluminium cast shop demand and strong demand for superalloys. Progress was made in the period with regards to insurance recovery for damage caused by Hurricane Helene to operations in Hendersonville, North Carolina, in the prior year. 

The £5.5 million investment to update and expand the Group's aluminium cast house production capabilities in Hendersonville is progressing as per plan, which will ramp up in the second half and complete in the first half of 2026. These assets require replacement on a 20-25 year cycle and will increase capacity, lower unit costs and improve carbon intensity. This investment will position the Group well to benefit from the continuing increased aluminium demand due to the replacement of plastic and steel by aluminium with its recyclability, the energy transition and its strength to weight benefits, making aluminium the perfect choice for many applications.

 

Alternative performance measures - Group profit

The Group presents alternative performance measures to enable a better understanding of its trading performance (see note 1). 

	H1 2025		H1 2024		Growth
	£m		£m		%
Adjusted operating profit	12.6		12.5		1
Adjusted profit before tax	12.0		11.5		4
Adjusted profit after tax	9.3		9.0		3

Adjusted operating profit and adjusted profit before tax exclude items that are material and where treatment as an adjusting item provides a more consistent assessment of the Group's trading performance. Adjusted profit excludes £0.6 million (2024: £0.9 million) for the amortisation of acquired intangible assets (see note 1).

Finance costs

Net finance costs comprise interest on borrowings; lease liabilities; and the Group's retirement benefit obligations; together with the cost of unwinding discounts on provisions and other payables. The Group also incurs undrawn commitment fees on available banking facilities. Net finance costs of £0.6 million (2024: £1.0 million) decreased in the period, following the repayment of borrowings in the second half of the prior year. 

Tax

The total Group tax charge was £2.5 million (2024: £2.3 million), including the tax effect of the adjusting items set out in note 1. The adjusted tax charge was £2.6 million (2024: £2.5 million), with the effective rate of income tax on adjusted profit before tax at 22% (2024: 22%).

Earnings per share ("EPS") and dividends

Basic EPS for the period was 19.0 pence (2024: 18.1 pence) and adjusted EPS 20.0 pence (2024: 19.5 pence). The Board has declared an interim dividend of 2.2 pence (2024: 2.1 pence) per share.

Investment

In the last five years, the Group has invested £51.6 million in capital expenditure and acquisitions. During the period, the Group invested £2.3 million on capital expenditure (2024: £2.5 million). 

Cash flow, cash and net debt

Cash generated from operations in the six months to 31 May 2025 was £10.2 million (2024: £7.1 million). The Group typically sees an increase in working capital in the first half of the year. Working capital increased by £3.3 million (2024: £7.1 million). 

Cash and cash equivalents at 31 May 2025 were £17.1 million (31 May 2024: £4.1 million net of borrowings; 30 November 2024: £13.7 million), comprising cash of £18.8 million and bank overdrafts of £1.7 million. Cash and cash equivalents held in the UK are subject to a Composite Account System, which is a banking offset arrangement that allows the set-off of overdraft balances with cash for interest calculation purposes. Lease liabilities were £14.2 million (31 May 2024: £18.7 million; 30 November 2024: £17.5 million). 

Return on capital employed

The Group's return on capital employed was 14% (2024: 14%). Excluding the impact of goodwill and retirement benefit obligations, the return on operating capital employed was 30% (2024: 31%).

 

Outlook

The Group has performed in line with expectations during the first six months of 2025. Trading has been mixed across our end markets, with strength in certain industrial businesses and laboratory instruments, offsetting softness in aerospace and foundry together with foreign exchange headwinds. Currently, the trading outlook for the second half of the year remains positive. We continue to monitor the near-term macro-economic uncertainty and tariff environment, noting that the Group's manufacturing footprint mainly serves local customers.

Since joining the Group, I have visited our locations and met with our highly talented team across the business. I have been encouraged by our technical capabilities and the potential of the company, as it is facing end-markets with long-term growth potential.

The Group's fundamental demand drivers have not changed and Porvair remains well positioned to take advantage of tightening environmental regulation; the growth of analytical science; the need for clean water; the development of carbon-efficient transportation; the replacement of plastic and steel by aluminium; and the drive for manufacturing process quality and efficiency. It is these trends that have driven the Group's consistent longer-term trading record.

Hooman Caman Javvi

Group Chief Executive

27 June 2025

Related parties

Other than the remuneration of key management personnel, there were no related party transactions in the six months ended 31 May 2025 (2024: none).

Principal risks

Each division considers strategic, operational and financial risks and identifies actions to mitigate those risks.  These risk profiles are reviewed by the Board and updated at least annually. Further details of the Group's risk profile analysis can be found in the Strategic Report section of the Annual Report & Accounts for the year ended 30 November 2024. There have been no significant changes since the year end.

Certain elements of the Group's order position can change quickly in the face of changing economic circumstances. The Metal Melt Quality division, Laboratory division and general industrial filtration within the Aerospace & Industrial division all have relatively short lead times and order cycles and, therefore, revenue is subject to fluctuations which could have a material effect on the Group's results for the balance of 2025. 

Forward-looking statements

Certain statements in this interim financial information are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 

 

 

Condensed consolidated income statement

For the six months ended 31 May

			Six months ended 31 May
			2025		2024
	Note		Unaudited		Unaudited
Continuing operations			£'000		£'000
Revenue	1,2		97,698		94,639
Cost of sales			(62,960)		(61,346)
Gross profit			34,738		33,293
Other operating expenses			(22,790)		(21,708)
Adjusted operating profit	1,2		12,572		12,468
Adjustments:
Amortisation of acquired intangible assets			(624)		(883)
Operating profit	1,2		11,948		11,585
Finance costs			(622)		(1,013)
Profit before tax			11,326		10,572
Adjusted income tax expense			(2,630)		(2,472)
Adjustments:
Tax effect of adjustments to operating profit	1		156		209
Income tax expense			(2,474)		(2,263)
Profit for the period			8,852		8,309
Profit attributable to:
-    Owners of the parent			8,767		8,309
-    Non-controlling interests			85		-
Profit for the period			8,852		8,309
Earnings per share (basic)	3		19.0p		18.1p
Earnings per share (diluted)	3		19.0p		18.1p
Adjusted earnings per share (basic)	3		20.0p		19.5p
Adjusted earnings per share (diluted)	3		20.0p		19.5p

 

 

Condensed consolidated statement of comprehensive income

For the six months ended 31 May

		Six months ended 31 May
		2025 Unaudited £'000		2024 Unaudited £'000
Profit for the period		8,852		8,309
Other comprehensive income/(loss)
Items that will not be reclassified to profit and loss:
Actuarial gain in defined benefit pension plans net of tax		474		132
Items that may be subsequently reclassified to profit and loss:
Exchange loss on translation of foreign subsidiaries		(4,113)		(682)
Total other comprehensive loss for the period		(3,639)		(550)
Total comprehensive income for the period		5,213		7,759
Comprehensive income attributable to:
-           Owners of the parent		5,128		7,759
-           Non-controlling interests		85		-
Total comprehensive income for the period		5,213		7,759

 

The accompanying notes are an integral part of this interim financial information. 

Condensed consolidated balance sheet

As at 31 May

		As at 31 May				As at 30 November
	Note	2025 Unaudited		2024 Unaudited		2024 Audited
		£'000		£'000		£'000
Non-current assets
Property, plant and equipment		29,019		28,795		29,327
Right-of-use assets		13,215		17,208		16,433
Goodwill and other intangible assets		87,054		91,242		89,792
Deferred tax asset		-		163		84
		129,288		137,408		135,636
Current assets
Inventories		30,173		32,480		31,969
Trade and other receivables		32,187		32,405		31,665
Derivative financial instruments		280		185		7
Cash		18,810		14,240		15,838
		81,450		79,310		79,479
Current liabilities
Trade and other payables		(25,713)		(27,420)		(27,408)
Bank overdrafts		(1,737)		(2,266)		(2,097)
Borrowings		-		(7,849)		-
Current tax liabilities		(1,824)		(1,235)		(1,572)
Lease liabilities		(2,175)		(1,763)		(2,487)
Derivative financial instruments		-		-		(40)
Provisions	5	(3,353)		(2,862)		(3,256)
		(34,802)		(43,395)		(36,860)
Net current assets		46,648		35,915		42,619
Non-current liabilities
Deferred tax liability		(3,688)		(3,903)		(3,704)
Retirement benefit obligations		(3,375)		(5,536)		(5,897)
Other payables		-		-		(85)
Lease liabilities		(12,057)		(16,956)		(14,969)
Provisions	5	(366)		(324)		(346)
		(19,486)		(26,719)		(25,001)
Net assets		156,450		146,604		153,254
Capital and reserves
Share capital		930		927		930
Share premium account		38,407		37,784		38,407
Cumulative translation reserve		5,146		10,143		9,259
Retained earnings		111,754		97,750		104,530
Equity attributable to owners of the parent		156,237		146,604		153,126
Non-controlling interests		213		-		128
Total equity		156,450		146,604		153,254

 

The interim financial information was approved by the Board of Directors on 27 June 2025 and was signed on its behalf by:

 

Hooman Caman Javvi                                                                                      James Mills

Group Chief Executive                                                                                       Group Finance Director

The accompanying notes are an integral part of this interim financial information.

Condensed consolidated cash flow statement

For the six months ended 31 May

		Six months ended 31 May
	Note	2025 Unaudited		2024 Unaudited
		£'000		£'000
Cash flows from operating activities
Cash generated from operations	7	10,196		7,120
Interest paid		(168)		(394)
Tax paid		(2,092)		(1,783)
Net cash generated from operating activities		7,936		4,943
Cash flows from investing activities
Interest received		20		1
Acquisition of subsidiaries (net of cash acquired)		-		(10,166)
Purchase of property, plant and equipment		(2,247)		(2,368)
Purchase of intangible assets		(36)		(143)
Net cash used in investing activities		(2,263)		(12,676)
Cash flows from financing activities
Proceeds from issue of ordinary shares		-		6
Purchase of Employee Benefit Trust shares		(430)		(319)
Proceeds of loans and borrowings		-		10,720
Repayments of loans and borrowings		-		(2,871)
Repayments of lease liabilities		(1,641)		(1,803)
Net cash (used in)/generated from financing activities		(2,071)		5,733
Net increase/(decrease) in cash and cash equivalents		3,602		(2,000)
Effects of exchange rate changes		(270)		(78)
		3,332		(2,078)
Cash and cash equivalents at the beginning of the period		13,741		14,052
Cash and cash equivalents at the end of the period		17,073		11,974

 

Reconciliation of net cash flow to movement in net cash/(debt)

For the six months ended 31 May

		Six months ended 31 May
		2025 Unaudited		2024 Unaudited
		£'000		£'000
Net (debt)/cash at the beginning of the period		(3,715)		653
Increase/(decrease) in cash and cash equivalents		3,602		(2,000)
Net movement in borrowings		-		(7,849)
Decrease/(increase) in lease liabilities		3,173		(5,426)
Effects of exchange rate changes		(219)		28
Net cash/(debt) at end of period		2,841		(14,594)
Cash and cash equivalents		17,073		11,974
Borrowings		-		(7,849)
Net cash		17,073		4,125
Lease liabilities		(14,232)		(18,719)
Net cash/(debt) at end of period		2,841		(14,594)

 

The accompanying notes are an integral part of this interim financial information.

 

Condensed consolidated statement of changes in equity

For the six months ended 31 May (unaudited)

 

 

	Share capital £'000	Share premium account £'000	Cumulative translation reserve £'000	Retained earnings £'000	Non-controlling interest £'000	Total equity £'000
At 1 December 2023	927	37,778	10,825	90,908	-	140,438
Profit for the period	-	-	-	8,309	-	8,309
Other comprehensive loss	-	-	(682)	132	-	(550)
Total comprehensive income for the period	-	-	(682)	8,441	-	7,759
Purchase of own shares             (held in trust)	-	-	-	(319)	-	(319)
Issue of ordinary share capital	-	6	-	-	-	6
Share-based payments          (net of tax)	-	-	-	562	-	562
Dividends	-	-	-	(1,842)	-	(1,842)
At 31 May 2024	927	37,784	10,143	97,750	-	146,604

 

 

At 1 December 2024	930	38,407	9,259	104,530	128	153,254
Profit for the period	-	-	-	8,767	85	8,852
Other comprehensive loss	-	-	(4,113)	474	-	(3,639)
Total comprehensive income for the period	-	-	(4,113)	9,241	85	5,213
Purchase of own shares             (held in trust)	-	-	-	(430)	-	(430)
Share-based payments         (net of tax)	-	-	-	352	-	352
Dividends	-	-	-	(1,939)	-	(1,939)
At 31 May 2025	930	38,407	5,146	111,754	213	156,450

 

The accompanying notes are an integral part of this interim financial information.

Notes

1.         Alternative performance measures

Alternative performance measures are used by the Directors and management to monitor business performance internally and exclude certain cash and non-cash items which they believe are not reflective of the normal course of business of the Group. The Directors believe that disclosing such non-IFRS measures enables a reader to isolate and evaluate the impact of such items on results and allows for a fuller understanding of performance from period to period. Alternative performance measures may not be directly comparable with other similarly titled measures used by other companies.

Alternative revenue measures (unaudited)

		H1 2025		H1 2024		Growth
Aerospace & Industrial		£'000		£'000		%
Underlying revenue		38,228		34,297		11
Acquisition		5,959		4,916
Revenue at constant currency		44,187		39,213		13
Exchange		408		1,221
Revenue as reported		44,595		40,434		10
Laboratory
Revenue at constant currency		31,001		30,337		2
Exchange		1,267		1,732
Revenue as reported		32,268		32,069		1
Metal Melt Quality
Revenue at constant currency		19,182		20,028		(4)
Exchange		1,653		2,108
Revenue as reported		20,835		22,136		(6)
Group
Underlying revenue		88,411		84,662		4
Acquisition		5,959		4,916
Revenue at constant currency		94,370		89,578		5
Exchange		3,328		5,061
Revenue as reported		97,698		94,639		3

 

Revenue at constant currency is derived from translating overseas subsidiaries results at budgeted fixed exchange rates. In 2025 and 2024, the budgeted rates used were US$1.40:£1 and €1.20:£1, compared with reported rates of US$1.29:£1 (2024: US$1.27:£1) and €1.20:£1 (2024: €1.17:£1).

Underlying revenue is revenue at constant currency adjusted for the impact of acquisitions made in the current period and prior year. The acquisition line above relates to the revenue from EFC, acquired in December 2023.

A reconciliation of the Group's adjusted performance measures to the reported IFRS measures is presented below:

		H1 2025				H1 2024
	Adjusted	Adjustments	Reported		Adjusted	Adjustments	Reported
	£'000	£'000	£'000		£'000	£'000	£'000
Operating profit	12,572	(624)	11,948		12,468	(883)	11,585
Finance costs	(622)	-	(622)		(1,013)	-	(1,013)
Profit before tax	11,950	(624)	11,326		11,455	(883)	10,572
Income tax expense	(2,630)	156	(2,474)		(2,472)	209	(2,263)
Profit for the period	9,320	(468)	8,852		8,983	(674)	8,309

 

An analysis of adjusting items is given below:

	H1 2025		H1 2024
Affecting operating profit:	£'000		£'000
Amortisation of acquired intangible assets	(624)		(883)
Affecting tax:
Tax effect of adjustments to operating profit	156		209
Total adjusting items	(468)		(674)

 

Adjusted operating profit excludes the amortisation of intangible assets arising on acquisition of businesses of £0.6 million (2024: £0.9 million).

2.         Segmental information

The chief operating decision maker has been identified as the Board of Directors. The Board of Directors has instructed the Group's internal reporting to be based around differences in products and services, in order to assess performance and allocate resources. The key profit measure used to assess the performance of each reportable segment is adjusted operating profit/(loss). Management has determined the operating segments based on this reporting.

As at 31 May 2025, the Group is organised on a worldwide basis into three operating segments:

1)   Aerospace & Industrial - principally serving the aviation, and energy and industrial markets;

2)   Laboratory - principally serving the bioscience and environmental laboratory instrument and consumables market; and

3)   Metal Melt Quality - principally serving the global aluminium, iron foundry and superalloys markets.

Other Group operations' costs, assets and liabilities are included in the "Central" division. Central costs mainly comprise Group corporate costs, including new business development costs, some research and development costs and general financial costs. Central assets and liabilities mainly comprise Group retirement benefit obligations, tax assets and liabilities, cash and borrowings.  

The segment results for the period ended 31 May 2025 are as follows:

H1 2025 - Unaudited	Aerospace & Industrial		Laboratory		Metal Melt Quality		Central		Group
	£'000		£'000		£'000		£'000		£'000
Total segment revenue	44,597		33,047		20,835		-		98,479
Inter-segment revenue	(2)		(779)		-		-		(781)
Revenue	44,595		32,268		20,835		-		97,698
Adjusted operating profit/(loss)	6,515		4,574		3,293		(1,810)		12,572
Amortisation of acquired intangible assets	(387)		(237)		-		-		(624)
Operating profit/(loss)	6,128		4,337		3,293		(1,810)		11,948
Finance costs	-		-		-		(622)		(622)
Profit/(loss) before tax	6,128		4,337		3,293		(2,432)		11,326

 

The segment results for the period ended 31 May 2024 are as follows:

H1 2024 - Unaudited	Aerospace  & Industrial		Laboratory		Metal Melt Quality		Central		Group
	£'000		£'000		£'000		£'000		£'000
Total segment revenue	40,434		32,689		22,136		-		95,259
Inter-segment revenue	-		(620)		-		-		(620)
Revenue	40,434		32,069		22,136		-		94,639
Adjusted operating profit/(loss)	5,846		4,521		3,565		(1,464)		12,468
Amortisation of acquired intangible assets	(573)		(310)		-		-		(883)
Operating profit/(loss)	5,273		4,211		3,565		(1,464)		11,585
Finance costs	-		-		-		(1,013)		(1,013)
Profit/(loss) before tax	5,273		4,211		3,565		(2,477)		10,572

 

The segment assets and liabilities at 31 May 2025 are as follows:

At 31 May 2025 - Unaudited	Aerospace & Industrial		Laboratory		Metal Melt Quality		Central		Group
	£'000		£'000		£'000		£'000		£'000
Segmental assets	84,674		71,241		33,512		2,501		191,928
Cash	-		-		-		18,810		18,810
Total assets	84,674		71,241		33,512		21,311		210,738
Segmental liabilities	(22,248)		(11,927)		(5,284)		(9,717)		(49,176)
Retirement benefit obligations	-		-		-		(3,375)		(3,375)
Bank overdrafts	-		-		-		(1,737)		(1,737)
Borrowings	-		-		-		-		-
Total liabilities	(22,248)		(11,927)		(5,284)		(14,829)		(54,288)

The segment assets and liabilities at 31 May 2024 are as follows:

At 31 May 2024 - Unaudited	Aerospace & Industrial		Laboratory		Metal Melt Quality		Central		Group
	£'000		£'000		£'000		£'000		£'000
Segmental assets	87,009		77,913		34,930		2,626		202,478
Cash	-		-		-		14,240		14,240
Total assets	87,009		77,913		34,930		16,866		216,718
Segmental liabilities	(27,607)		(13,602)		(4,862)		(8,392)		(54,463)
Retirement benefit obligations	-		-		-		(5,536)		(5,536)
Bank overdrafts	-		-		-		(2,266)		(2,266)
Borrowings	-		-		-		(7,849)		(7,849)
Total liabilities	(27,607)		(13,602)		(4,862)		(24,043)		(70,114)

The segment assets and liabilities at 30 November 2024 are as follows:

At 30 November 2024 - Audited
	Aerospace & Industrial		Laboratory		Metal Melt Quality		Central		Group
	£'000		£'000		£'000		£'000		£'000
Segmental assets	87,154		73,447		36,477		2,199		199,277
Cash	-		-		-		15,838		15,838
Total assets	87,154		73,447		36,477		18,037		215,115
Segmental liabilities	(26,604)		(12,585)		(6,573)		(8,105)		(53,867)
Retirement benefit obligations	-		-		-		(5,897)		(5,897)
Bank overdrafts	-		-		-		(2,097)		(2,097)
Borrowings	-		-		-		-		-
Total liabilities	(26,604)		(12,585)		(6,573)		(16,099)		(61,861)

 

 

 

Geographical analysis

	H1 2025 Unaudited			H1 2024 Unaudited
Revenue	By destination £'000	By origin £'000		By destination £'000	By origin £'000
United Kingdom	11,178	24,794		9,308	23,363
Continental Europe	26,587	25,589		26,824	25,682
United States of America	37,478	41,589		39,665	43,074
Other North America	2,422	-		2,212	-
South America	975	-		792	-
Asia	16,993	5,726		14,498	2,520
Africa	2,065	-		1,340	-
	97,698	97,698		94,639	94,639

 

3.         Earnings per share ("EPS")

	H1 2025 Unaudited				H1 2024 Unaudited
As reported	Earnings £'000	Weighted average number of shares	Per share Pence		Earnings £'000	Weighted average number of shares	Per share Pence
Profit for the period - attributable to owners of the parent	8,767				8,309
Shares in issue		46,496,553				46,355,562
Shares owned by the Employee Benefit Trust		(352,474)				(367,852)
Basic EPS	8,767	46,144,079	19.0		8,309	45,987,710	18.1
Dilutive share options outstanding	-	26,988	-		-	42,588	-
Diluted EPS	8,767	46,171,067	19.0		8,309	46,030,298	18.1

In addition to the above, the Group also calculates an EPS based on adjusted profit as the Board believes this to be a better measure to judge the progress of the Group, as discussed in note 1.

	H1 2025				H1 2024
Adjusted	Earnings £'000	Unaudited Weighted average number of shares	Per share Pence		Earnings £'000	Unaudited Weighted average number of shares	Per share Pence
Profit for the period - attributable to owners of the parent	8,767				8,309
Adjusting items (note 1)	468				674
Adjusted profit -attributable to owners of the parent	9,235				8,983
Adjusted Basic EPS	9,235	46,144,079	20.0		8,983	45,987,710	19.5
Adjusted Diluted EPS	9,235	46,171,067	20.0		8,983	46,030,298	19.5

 

 

4.         Dividends per share

	H1 2025			H1 2024
	Unaudited			Unaudited
	Per share Pence	£'000		Per share Pence	£'000
Final dividend approved	4.2	1,939		4.0	1,842

 

The final dividend approved for the year ended 30 November 2024 was paid to shareholders on 4 June 2025.

The Directors have declared an interim dividend of 2.2 pence (2024: 2.1 pence) per share to be paid on 22 August 2025 to shareholders on the register at the close of business on 18 July 2025; the ex-dividend date is 17 July 2025.

5.         Provisions

				Dilapidations £'000		Warranty £'000		Total £'000
At 1 December 2024				346		3,256		3,602
Additional charge in the period				-		328		328
Utilisation of provision				-		(138)		(138)
Unwind of discount				20		-		20
Exchange				-		(93)		(93)
At 31 May 2025				366		3,353		3,719

Provisions arise from potential claims on major contracts, sale warranties, and discounted dilapidations for leased property. Matters that could affect the timing, quantum and extent to which provisions are utilised or released, include the impact of any remedial work, claims against outstanding performance bonds, and the demonstrated life of the filtration equipment installed. 

6.         Contingent liabilities

At 31 May 2025, the Group had €1.2 million (31 May 2024: €2.8 million; 30 November 2024: €5.0 million) and $0.7 million (31 May 2024: $nil; 30 November 2024: $0.7 million) of advanced payment and performance bonds issued in the ordinary course of business, which are expected to expire no later than July 2026 and February 2029.

 7.        Cash generated from operations

		H1 2025 Unaudited £'000		H1 2024 Unaudited £'000
Operating profit		11,948		11,585
Adjustments for:
Fair value movement of derivatives through profit and loss		(313)		65
Share-based payments		357		532
Depreciation of property, plant and equipment, and amortisation of intangibles		2,430		2,904
Depreciation of right-of-use assets		1,273		1,323
Operating cash flows before movement in working capital		15,695		16,409
Decrease in inventories		1,097		192
Increase in trade and other receivables		(1,496)		(7,718)
(Decrease)/increase in trade and other payables		(3,061)		840
Increase/(decrease) in provisions		133		(437)
Increase in working capital		(3,327)		(7,123)
Post-employment benefits		(2,172)		(2,166)
Cash generated from operations		10,196		7,120

 

 

8.         Exchange rates

Exchange rates for the US dollar and Euro during the period were:

	Average rate to 31 May 25	Average rate to 31 May 24	Closing rate at 31 May 25	Closing rate at 30 Nov 24
	Unaudited	Unaudited	Unaudited	Unaudited
US dollar	1.29	1.27	1.35	1.27
Euro	1.20	1.17	1.19	1.20

9.         Basis of preparation

Porvair plc is a public limited company registered in the UK and listed on the London Stock Exchange.

This unaudited condensed interim consolidated financial information for the six months ended 31 May 2025 has been prepared in accordance with the Disclosure and Transparency Rules ('DTR') of the Financial Conduct Authority and with IAS 34 Interim Financial Reporting as contained in UK-adopted International Accounting Standards. The condensed interim consolidated financial information should be read in conjunction with the annual financial statements for the year ended 30 November 2024, which were prepared in accordance with applicable law and UK-adopted International Accounting Standards.

The accounting policies applied in these interim financial statements are consistent with those applied in the Group's consolidated financial statements for the year ended 30 November 2024. A number of new amendments are effective from 1 December 2024 but they do not have a material effect on the Group's financial statements.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

This condensed interim consolidated financial information has been prepared on a going concern basis under the historical cost convention, as modified by the recognition of certain financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss.

The preparation of condensed interim consolidated financial information, in conformity with generally accepted accounting principles, requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed interim consolidated financial information, and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results may ultimately differ from those estimates. In preparing the condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 30 November 2024.

After having made appropriate enquiries including a review of progress against the Group's budget for 2025, its current trading and medium-term plans, and taking into account the banking facilities available until August 2028 with an option to extend by one year, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least twelve months from the date of approval of the condensed interim consolidated financial information. Accordingly, they continue to adopt the going concern basis in preparing this condensed interim consolidated financial information.

This condensed interim consolidated financial information and the comparative figures do not constitute full accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 November 2024, which were approved by the Board of Directors on 7 February 2025, and which include an unqualified audit report, no emphasis of matter paragraph and no statements under sections 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies. This condensed interim consolidated financial information has been reviewed, not audited.

The condensed interim consolidated financial information does not include all financial risk management information and disclosures required in the annual financial statements; it should be read in conjunction with the Group's annual financial statements for the year ended 30 November 2024. There have been no changes in any risk management policies since the year end.

This report will be available at Porvair plc's registered office at 7 Regis Place, Bergen Way, King's Lynn, PE30 2JN and on the Company's website, www.porvair.com.

 

Statement of directors' responsibilities

The Directors confirm that this condensed interim consolidated financial information has been prepared in accordance with IAS 34 Interim Financial Reporting as contained in UK-adopted International Accounting Standards, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

·         an indication of important events that have occurred during the first six months of the year, their impact on the condensed interim consolidated financial information and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

 

·         material related party transactions in the first six months of the year and any material changes in the related party transactions described in the last annual report.

The Directors of Porvair plc are listed in the Porvair plc Annual Report for the year ended 30 November 2024. A list of current Directors is maintained on the Porvair plc website, www.porvair.com. 

By order of the board

Hooman Caman Javvi	James Mills
Group Chief Executive 27 June 2025	Group Finance Director

 

 

INDEPENDENT REVIEW REPORT TO PORVAIR PLC

Conclusion

We have been engaged by Porvair Plc ('the Company') to review the condensed set of financial statements of the Company and its subsidiaries (the 'Group') in the interim financial report for the six months ended 31 May 2025 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated cash flow statement, the condensed consolidated statement of changes in equity and related notes 1 to 9. We have read the other information contained in the  interim financial report and considered whether it contains any apparent material misstatements of fact or material inconsistencies with the information in the condensed set of financial statements.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 31 May 2025 is not prepared, in all material respects, in accordance with International Accounting Standard 34, "Interim Financial Reporting" as contained in UK-adopted International Accounting Standards, and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" ('ISRE (UK) 2410') issued for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 9, the annual financial statements of the Group are prepared in accordance with UK-adopted International Accounting Standards. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" as contained in UK-adopted International Accounting Standards.

Conclusions Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the Group and the Company to cease to continue as a going concern.

Responsibilities of Directors

The interim financial report, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with International Accounting Standard 34, "Interim Financial Reporting" as contained in UK-adopted International Accounting Standards and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the interim financial report, the directors are responsible for assessing the Group's and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Review of the Financial Information

In reviewing the interim financial report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the interim financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

 

Use of our report

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK) 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity". Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

RSM UK Audit LLP

Chartered Accountants

5th Floor, Central Square

29 Wellington Street

Leeds

LS1 4DL

 

27 June 2025