Porvair (PRV) CEO Ben Stocks, CEO provides a whistle stop tour of full year results at the Equity Development’s Investor Forum 27.1.16

PRV achieved pre tax profit up 9%, £9.2m. At the top end of their stated achievable growth of 7-9% per annum.

PRV make specialist filters, supplying diversified markets: aviation, energy and industrial process, environmental, molten metals. All are growth markets. With 25% profit contribution from each sector.

Their filters are a small unit cost to service costly capital equipment. Often the filters are required under legislation, and the supplier has to be accredited. This creates strong barriers to entry, and guaranteed repeat business.

PRV have low CAPEX, with high cash generation. They use their cash for organic growth, (although opportunities are relatively limited), and they have a progressive dividend policy – currently 1.25% yield.

At the moment all markets look robust for 2016. Staff costs are the main cost (not raw materials – commodities). Their biggest threat would be destocking from a global recession – similar to what they experienced in 2009. Although they are not worried about this with the current market.

Ben Stocks runs through each division with highlights of what’s happened over the last year, and future prospects.

Presentation slides can be viewed here (a new window will open).