Porvair boss forecasts revenue rise and fall over coming years
PORVAIR’S chief executive yesterday warned that revenue would rise this year but then fall in 2015, as the specialist filtration and environmental technology group unveiled record figures for 2013.
The London-listed firm posted a 10 per cent rise in revenues to £84.3m for the year ended 30 November 2013, while pre-tax profits rose 25 per cent to £7.8m.
“These are a record set of results for us,” chief executive Ben Stocks told City PM
“We had a really good order intake in 2013 and we plan to put that cash flow into manufacturing capacity, to achieve organic growth.”
Porvair has secured three large contracts in its energy and industrials division, worth over £10m, which will significantly boost revenue this year.
“We expect a one-off revenue increase in 2014 of around £20m, but the revenue will fall back to the underlying growth rate the year after,” said Stocks.
The company, which increased its dividend to 1.8p per share in 2013 from 1.6p in 2012, invested £5.1m in two bolt-on acquisitions last year.
Stock said the company is eyeing a further four to six acquisitions in the next two years, spending £10m to £12m in total.
Porvair’s largest market is the US, which accounts for 40 per cent of sales, followed by the UK and then Asia.
Shares fell 1.72 per cent.