Porvair Reports Mixed H1 2025 Results Amid Economic Uncertainties
Why we think this is neutral
While Porvair has shown modest growth in revenue and profits, the overall picture is mixed. The 3% revenue increase and 1% rise in adjusted operating profit indicate steady but not spectacular performance. Positive factors include improved cash position and a slight dividend increase. However, these are counterbalanced by softness in aerospace and foundry sectors, foreign exchange headwinds, and economic uncertainties. The company's cautious outlook for the second half, coupled with its acknowledgment of near-term macro-economic challenges, suggests a balanced view is warranted. The current P/E ratio of around 20.3x also indicates the market may have already priced in much of the positive news.
Key Points
- Revenue up 3% to £97.7 million (5% higher on constant currency basis)
- Adjusted operating profit 1% higher at £12.6 million
- Basic EPS 5% higher at 19.0 pence
- Closing cash improved to £17.1 million from £4.1 million in May 2024
- Interim dividend increased to 2.2 pence per share
- Mixed trading across end markets with strength in industrial and laboratory segments
- Softness in aerospace and foundry sectors
- Foreign exchange headwinds impacting results
- Cautiously positive outlook for second half of 2025
- Monitoring near-term macro-economic uncertainty and tariff environment
Summary
Porvair plc reported its H1 2025 results with revenue up 3% to £97.7 million and adjusted operating profit 1% higher at £12.6 million. The company saw strength in certain industrial businesses and laboratory instruments, but faced softness in aerospace and foundry sectors. Cash position improved significantly to £17.1 million, up from £4.1 million in May 2024. However, the company is cautious about near-term macro-economic uncertainty and tariff environment. The interim dividend was increased to 2.2 pence per share. Looking ahead, Porvair maintains a positive outlook for the second half but acknowledges ongoing challenges.