Shares in specialist filtration and environmental technology group Porvair were up 2% in early morning trading as a result of the company reporting record full year profits up 10% to £10.1m and record revenue of £109.4 million, up 14%.
The company said it had seen strong cash generation over the 12 month period and as a result of all of the above, it was pleased to report a 9% increase to its dividend.
This small firm based in Kings Lynn has two divisions: Microfiltration, which serves aviation, environmental laboratory and industrial markets, and Metals Filtration, which focuses on equipment for aluminium foundries in the US. Interested investors should appreciate that Porvair continues to benefit from new products and acquisitions and even highlighted today that it is aiming to introduce new products in aviation and nuclear filtration.
Investors may also want to recognise that the share price is up 50% over the last year.
Commenting on the group’s performance Ben Stocks, chief executive, was keen to highlight that the company ‘finished 2016 strongly and has started 2017 with a healthy order position’, so the outlook remains positive.
Porvair has been a long favoured small cap pick and although the shares do not appear overly cheap, this is a smaller company that is establishing a niche for itself in regulated markets that continue to grow and has a good track record in earnings growth.
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