Interim Results
Summary by AI BETAClose X
29 June 2026
Porvair plc
Interim results for the six months ended 31 May 2026
Record revenue and profit in the first half, continued M&A and positive outlook for the full year
Porvair plc ("Porvair" or the "Group"), the specialist filtration, laboratory and environmental technology group, announces its interim results for the six months ended 31 May 2026 ("H1 26" or the "period").
Financial summary:
|
|
H1 26 £m |
H1 25 £m |
Change |
|
Revenue |
106.2 |
97.7 |
+9% |
|
Adjusted operating profit1 |
13.8 |
12.6 |
+10% |
|
Adjusted operating margin %1 |
13.0% |
12.9% |
+10bps |
|
Adjusted profit before tax1 |
13.2 |
12.0 |
+10% |
|
Adjusted basic earnings per share (pence)1 |
22.1p |
20.0p |
+11% |
|
Cash generated from operations |
9.7 |
10.2 |
(5%) |
|
Net cash |
7.1 |
17.1 |
(58%) |
|
Return on capital employed % |
14.0% |
13.8% |
+20bps |
|
Statutory performance: |
|
|
|
|
Operating profit |
12.7 |
11.9 |
+7% |
|
Profit before tax |
12.0 |
11.3 |
+6% |
|
Basic earnings per share (pence) |
20.2p |
19.0p |
+6% |
Group highlights:
|
· |
Revenue growth of 9% on a constant currency basis1, 2% on an OCC basis: |
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|
|
o |
Aerospace & Industrial: -2% in the period (-3% on an OCC basis) against a strong comparator, particularly in petrochemicals. |
|
|
o |
Laboratory: +3% in the period (+4% on an OCC basis) supported by growth in life sciences and continued demand in environmental testing markets. |
|
|
o |
Metal Melt Quality: +40% in the period, +46% at constant currency, (+10% on an OCC basis) driven by the contribution from Drache and continued robust aluminium demand and strength in superalloys. |
|
· |
Adjusted operating margin1 13.0% (H1 25: 12.9%), an increase of 10bps. |
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|
· |
Closing net cash £7.1m (H1 25: £17.1m; FY 25: £22.9m) after investing £21.2m (H1 25: £2.3m) in capital expenditure and acquisitions. |
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|
· |
Capital expenditure includes the final phase of the £5.5m Hendersonville aluminium cast house project, which was delivered on time and to budget. |
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|
· |
Execution of the M&A strategy, including two post period end acquisitions: |
|
|
|
o |
Drache Umwelttechnik GmbH ("Drache") acquired on 12 January 2026 for €20.5m (c.£17.8m), with the integration progressing to plan and trading slightly ahead of expectations. |
|
|
o |
Agreement to acquire GV Filtri Industriali S.r.l. ("GV"), an Italian industrial filtration systems manufacturer, for €6.7m (c.£5.8m) signed on 19 June 2026, completion subject to regulatory approval. |
|
|
o |
Bolt-on acquisition of Carekem Limited ("Carekem"), a UK laboratory servicing company, for £1.1m signed on 19 June 2026. |
|
· |
Interim dividend increased by 9% to 2.4 pence per share (H1 25: 2.2 pence per share). |
|
|
· |
Before taking account of the part-year contributions from GV and Carekem, the Board's expectations for the full year remain unchanged. |
|
1See notes 1, 2 and 3 for definitions and reconciliations.
Commenting on the performance and outlook, Hooman Caman Javvi, Chief Executive Officer, said:
"The Group delivered both record revenue and profit in the first half, reflecting disciplined execution and the strength and resilience of Porvair's diversified portfolio against mixed conditions across the Group's end markets. Strength in aerospace, nuclear, life sciences, aluminium and superalloys was partially offset by expected weakness in petrochemicals and certain industrial end markets.
We continue to execute at pace and build momentum, with a sustained focus on operational excellence and driving performance across the business, underpinned through disciplined capital allocation. The integration of Drache is progressing to plan, with trading slightly ahead of expectations. We have also continued to deliver against our M&A strategy, having agreed to acquire GV, subject to regulatory approval, and having acquired Carekem in June. Together with the Drache acquisition earlier in the year, we have executed three transactions, one per division, for an aggregate consideration of approximately £25m.
While we continue to monitor the developments in the Middle East, we note that the Group's manufacturing footprint mainly serves local customers, and its decentralised management structure provides flexibility, agility and resilience in navigating volatile trading conditions, enabling key commercial decisions to be made close to customers and suppliers. The Board's expectations for the full year remain unchanged (excluding the part-year contributions from GV and Carekem), supported by the Group's diversified customer base, strong recurring revenue streams and disciplined operational management."
Analyst presentation
Hooman Caman Javvi, Chief Executive Officer and James Mills, Chief Financial Officer, will host an in-person analyst briefing at 9.30am today at the offices of Deutsche Numis. Analysts wishing to attend can register via porvair@almastrategic.com. An audio webcast of the meeting and the presentation will subsequently be made available at www.porvair.com as soon as is practicable.
Capital Markets Event
Porvair will host a Capital Markets Event in London during the afternoon of Wednesday, 14 October 2026.
Please note this is a change from Thursday, 15 October 2026 previously announced.
The event will showcase the Group's three divisions and provide further insight into Porvair's future ambition, strategic priorities and financial framework, with presentations from members of the senior management team. Shareholders wishing to attend should contact porvair@almastrategic.com.
For further information please contact:
|
Porvair plc |
+44 (0)1553 765 500 |
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Hooman Caman Javvi, Chief Executive Officer |
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James Mills, Chief Financial Officer |
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Alma Strategic Communications |
+44 (0)20 3405 0205 |
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Andrew Jaques / Josh Royston / Hannah Campbell / Rose Docherty |
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Notes to editors
Porvair is a group of specialist filtration, laboratory and environmental technology companies. Our businesses design and manufacture bespoke consumable filtration products that are used in a range of niche markets. It operates in three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality.
Overview
Porvair delivered both record revenue of £106.2m and profit of £13.8m in the first half, in line with expectations, against a backdrop of continued macroeconomic uncertainty and mixed end-market demand. The Group's diversified business model and disciplined execution continued to provide resilience, with strength in structural growth markets offsetting softer conditions elsewhere.
The Group continues to make good progress in executing its strategy, focusing on operational excellence and disciplined capital allocation. We also continue to deliver against the Group's M&A strategy including the successful integration of Drache and two post period end acquisitions with GV, subject to regulatory approval, and Carekem.
As expected, trading varied across the Group's end markets. Strength in aerospace, nuclear, life sciences, aluminium and superalloys offset softer conditions in petrochemicals and selected industrial and automotive-related markets. Petrochemical sales were approximately £7m lower, reflecting subdued activity in Europe as previously signaled, and followed a particularly strong comparator, with record revenues in H1 25. This decline was more than offset by strong nuclear demand, gasification project deliveries in the period for a new customer and growth in other end markets.
Porvair's decentralised operating model remains central to how the Group operates and continues to provide a clear advantage in navigating volatile conditions, enabling fast decision-making close to customers and suppliers. This flexibility has remained particularly valuable in the context of ongoing geopolitical uncertainty, including developments in the Middle East, which to date have had no material impact on performance.
The underlying characteristics of Porvair's business model remain unchanged. The Group operates in highly regulated, specification-driven markets with high levels of repeat demand, low customer concentration and broad geographic exposure. The combination of its specialist technologies, proven engineering capability and deep expertise in material science continue to underpin Porvair's long-term growth prospects, cash generation and disciplined reinvestment.
Financial performance and investment
Reported revenue increased by 9% to £106.2m, with organic constant currency growth of 2%. Adjusted operating profit increased by 10% to £13.8m. Operating margin improved by 10bps to 13.0%, driven by underlying operational improvements across the Group and increased volume from certain end markets, which more than offset both the dilutive impact of the Drache acquisition and lower petrochemical volumes.
A key milestone during the period was the completion of the Drache acquisition. Integration is progressing well, with the Metal Melt Quality teams working closely together in driving commercial and operational improvements, with early trading slightly ahead of expectations. Drache contributed £7.3m of revenue and £0.8m operating profit in the period post completion.
Basic EPS for the period increased by 6% to 20.2 pence per share (H1 25: 19.0 pence per share) and adjusted basic EPS by 11% to 22.1 pence per share (H1 25: 20.0 pence per share). The Board has declared a 9% increase in the interim dividend to 2.4 pence per share (H1 25: 2.2 pence per share).
Capital expenditure remained focused on capacity, productivity and long-term efficiency. The aluminium cast house investment in Hendersonville was completed on time and to budget. These assets require replacement on a 20-25 year cycle and will increase capacity, lower unit costs and reduce carbon emissions.
The Group continues to have a strong balance sheet, with modest borrowings. Closing net cash of approximately £7m, together with existing banking facilities, provides the Group with a strong base from which to continue to progress its strategic and operational plans.
Our capital allocation priorities remain unchanged. We are focused on investment into organic growth initiatives in the first instance, followed by selective and value-accretive acquisitions, and thirdly a progressive dividend policy.
Execution and M&A
The Group continues to build momentum, with a sharper focus on operational excellence and capital allocation. Key actions during the period have been focused on operational delivery and enhanced performance management, including the further strengthening of the team. In terms of capital allocation, we have improved our capex processes and post-investment reviews across the Group. Our decentralised operating model drives profitable growth, while the Executive Committee continues to strengthen accountability across the business.
Innovation remains central to our growth model, with several ongoing customer-led new product developments across the Group, particularly within Aerospace, Seal Analytical and Porvair Life Sciences. This supports our ability to outperform underlying markets and reinforces the differentiated nature of our technology portfolio.
Continuing to deliver on our M&A strategy remains a focus. The Executive Committee, with the support of the central M&A resource and input from General Managers across the Group, proactively manages and develops the pipeline of opportunities. We maintain a disciplined approach to M&A with well-defined criteria. The acquisition of Drache is a clear example of this strategy in action, bringing complementary products and engineering experience, while expanding the division's global reach with a new European base alongside its American and Asian operations, all of which strengthens Metal Melt Quality's position in the growing global aluminium end market.
GV, founded in 2008, specialises in the design and manufacture of industrial filters and complete filtration systems and is based outside of Turin, Italy. It is a company we have known for many years and under its existing management team, GV will join our Aerospace & Industrial division to increase the division's capability and reach into the Italian and wider southern European markets. This acquisition will also bring complementary products and offers cross-selling opportunities for the division. Agreement has been reached to acquire GV, subject to regulatory approval, for a total cash consideration of €6.7m including property, of which €1.0m is deferred. For the year ended December 2025, GV's revenue was approximately €5m and the acquisition is expected to be earnings and margin enhancing this financial year (after integration related costs). GV employs approximately 30 people.
The Group also completed the acquisition of Carekem, a UK laboratory servicing company, in June, which is a small bolt-on acquisition to our Seal Analytical business, within our Laboratory division. Seal Analytical supplies instruments and consumables to environmental laboratories. Carekem provides servicing of environmental instrument equipment with revenue in the year ended March 2026 of £0.8m. The business was acquired for £1.1m. The acquisition will give Seal access to a new customer base, enable cross-selling and provide opportunities to scale our Seal UK business. The acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026.
Track record
The benefit of Porvair's diverse operating spread is shown in the relatively consistent long-term track record, despite inconsistent demand across sectors. The Group's track record for growth, cash generation and investment is as follows:
|
|
5 years |
10 years |
15 years |
|
Revenue CAGR1 |
9% |
7% |
8% |
|
Adjusted earnings per share CAGR1 |
13% |
10% |
14% |
|
Earnings per share CAGR1 |
11% |
9% |
13% |
|
1Compound Annual Growth Rate |
|
|
|
|
|
5 years |
10 years |
15 years |
|
£m |
£m |
£m |
|
|
Cash generated from operations |
124.1 |
198.6 |
256.4 |
|
Investment in acquisitions and capital expenditure |
72.3 |
120.9 |
147.5 |
This longer-term growth record gives the Board confidence in the Group's capabilities and is the basis for capital allocation and planning decisions.
Trading and outlook
The Group delivered both record revenue and profit in the first half in a mixed and uncertain environment. Strength in many of our end markets has more than offset weaker conditions elsewhere, mainly in petrochemical, which is expected to remain subdued for the remainder of 2026, demonstrating once again the resilience of our business model.
Looking ahead, the Group's long-term growth drivers remain firmly in place, including tightening environmental regulation; growth in analytical science; increasing demand for clean water; the shift toward carbon-efficient transportation; and the replacement of traditional materials with aluminium. These trends continue to underpin our markets and support sustained demand for our technologies.
The Board's near-term priorities include continued operational improvement where we expect to see benefits from a more structured and disciplined approach to execution, new product introductions across all divisions, and the ramp-up of recent capital investments, as well as further integration of Drache and welcoming GV and Carekem to the Group.
Before taking account of the part-year contributions from GV and Carekem, the Board's expectations for the full year remain unchanged. With a diversified portfolio, strong recurring revenue base and disciplined execution, Porvair remains well positioned to deliver further progress. The Board sees no change in the Group's long-term strategic outlook and remains committed to a strategy of organic and inorganic growth.
Hooman Caman Javvi
Chief Executive Officer
Financial review
Group results
|
|
H1 26 |
H1 25 |
Change |
|
|
£m |
£m |
|
|
Revenue |
106.2 |
97.7 |
+9% |
|
Operating profit |
12.7 |
11.9 |
+7% |
|
Profit before tax |
12.0 |
11.3 |
+6% |
|
Profit after tax |
9.3 |
8.9 |
+4% |
Revenue was 9% higher on a reported currency basis and 9% higher at constant currency. Organic constant currency revenue growth was 2% (see note 1).
Alternative profit measures
The Group presents alternative profit measures to enable a better understanding of its trading performance (see note 1). Adjusted profit excludes £0.9m (H1 25: £0.6m) for the amortisation of acquired intangible assets and £0.3m (H1 25: £nil) for costs incurred in acquiring 100% of the share capital of Drache, which completed on 12 January 2026, 100% of the share capital of Carekem, which completed on 19 June 2026, and 100% of the share capital of GV, signed on 19 June 2026, for which completion is subject to regulatory approval.
|
|
H1 26 |
H1 25 |
Change |
|
|
£m |
£m |
|
|
Adjusted operating profit |
13.8 |
12.6 |
+10% |
|
Adjusted profit before tax |
13.2 |
12.0 |
+10% |
|
Adjusted profit after tax |
10.2 |
9.3 |
+10% |
Divisional review
Aerospace & Industrial
|
|
H1 26 |
H1 25 |
Change |
|
|
£m |
£m |
|
|
Revenue |
43.8 |
44.6 |
(2%) |
|
Adjusted operating profit1 |
6.1 |
6.5 |
(6%) |
|
Adjusted operating margin %1 |
13.9% |
14.6% |
(70bps) |
|
Operating profit |
5.7 |
6.1 |
(7%) |
1See 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. The division operates from sites in the UK, US, the Netherlands, Belgium and India, and its sales are global.
Revenue declined by 2% in the period (3% at constant currency) against a strong comparator, particularly in petrochemicals, which delivered record revenue in H1 25. Petrochemical revenues, which can be lumpy, were approximately £7m (50%) lower than in H1 25, reflecting subdued market conditions in Europe which are expected to remain throughout 2026. Aerospace revenue increased by 8% and nuclear delivered strong growth, supported by favourable sector dynamics and prior-year contract wins. Gasification delivered revenues from a new customer, further demonstrating the division's ability to broaden its customer base. The 70bps reduction in margin was driven largely by operational gearing on reduced petrochemical activities as expected.
In June, the Group agreed to acquire GV for total consideration of €6.7m, of which €1.0m will be deferred over three years. GV is an Italian industrial filtration systems manufacturer and the acquisition will enhance the Aerospace & Industrial division's capability and extend its reach in Italy and the wider southern European market. GV brings complementary products, broadens the division's portfolio and creates cross-selling opportunities. For the year ended December 2025, GV generated revenue of approximately €5m and the acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026, after integration-related costs. GV employs approximately 30 people.
Laboratory
|
|
H1 26 |
H1 25 |
Change |
|
|
£m |
£m |
|
|
Revenue |
33.2 |
32.3 |
+3% |
|
Adjusted operating profit1 |
5.0 |
4.6 |
+9% |
|
Adjusted operating margin %1 |
15.1% |
14.2% |
+90bps |
|
Operating profit |
4.8 |
4.3 |
+12% |
1See notes 1 and 2 for definitions and reconciliations.
The Laboratory division has two operating businesses: Porvair Life Sciences (consisting of Porvair Sciences, Finneran, Kbiosystems and Ratiolab) and Seal Analytical. The division operates from sites in the UK, US, Germany, Hungary, the Netherlands and China, and its sales are global.
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· |
Porvair Life 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 increased by 3% in the period (4% at constant currency) supported by growth in life sciences, consistent demand for consumables and continued demand in environmental testing markets. Early indicators suggest some moderation in environmental demand in the second half, which will be monitored closely. The division also continued to make progress with new product developments across Seal Analytical, Porvair Sciences and Finneran, with encouraging early market interest. The 90bps improvement in operating margin was driven by value-add product offerings, together with continued operational excellence.
In June, the Group completed the acquisition of Carekem, a UK laboratory servicing company, as a small bolt-on acquisition for Seal Analytical. Carekem generated revenue of £0.8m in the year ended March 2026 and was acquired for total consideration of £1.1m. The acquisition provides Seal with access to a new customer base and creates opportunities to scale the Seal UK business. The acquisition is expected to be earnings and margin enhancing in the year ending 30 November 2026.
Metal Melt Quality
|
|
H1 26 |
H1 25 |
Change |
|
|
£m |
£m |
|
|
Revenue |
29.3 |
20.8 |
+40% |
|
Adjusted operating profit1 |
4.6 |
3.3 |
+39% |
|
Adjusted operating margin %1 |
15.7% |
15.9% |
(20bps) |
|
Operating profit |
4.3 |
3.3 |
+30% |
1See 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. The division operates from sites in the US, Germany and China, and its sales are global.
Metal Melt Quality operates in attractive end markets, including growing demand for aluminium filtration. This global trend is underpinned by the infinite recyclability of aluminium; its strength-to-weight benefits for use in transportation; the replacement of plastic and steel with aluminium; and the energy efficiency of cast house recycling compared with primary production.
In January 2026, the Group acquired 100% of the share capital of Drache, which is active in the development, manufacture, and distribution of filters, consumables, and equipment for the molten metal industry, and is a leading supplier to the aluminium filtration market. The Drache acquisition was a key milestone in the period, strengthening the Group's position in Metal Melt Quality and expanding its European footprint. Integration is progressing to plan and early trading is slightly ahead of expectations.
Drache has further strengthened the Group's aluminium offering, as has the £5.5m investment to update and expand the Group's aluminium cast house production capabilities in Hendersonville, US, which completed in the period, on time and to budget.
Metal Melt Quality revenue increased by 40% in the period. Excluding Drache, constant currency revenue growth was 10%, driven by continued robust aluminium demand and strength in superalloys. Demand in the auto, truck and agriculture end markets, which represent a smaller part of Metal Melt Quality, remained subdued but stable. The 20bps reduction in operating margin was driven by the maiden profit contribution from Drache, which more than offset margin progress on value-add product offerings, continued operational excellence and operating leverage elsewhere.
Net finance costs
Net finance costs comprise interest income on deposits, interest on borrowings, lease liabilities, and the Group's retirement benefit obligations, together with the cost of unwinding discounts on provisions. The Group also incurs undrawn commitment fees on available banking facilities. Net finance costs of £0.7m (H1 25: £0.6m) increased in the period primarily due to interest on borrowings drawn to partially fund the Drache acquisition.
Tax
The total Group tax charge was £2.7m (H1 25: £2.5m), including the tax effect of the adjusting items set out in note 1. The adjusted tax charge was £3.0m (H1 25: £2.6m), with the effective rate of income tax on adjusted profit before tax being 23% (H1 25: 22%).
Cash flow, cash and net debt
Cash generated from operations in the period was £9.7m (H1 25: £10.2m). The Group typically sees an increase in working capital in the first half of the year and working capital increased by £5.8m (H1 25: £3.3m).
During the period, the Group invested a total of £21.2m on capital expenditure and acquisitions (H1 25: £2.3m). Capital expenditure on property, plant and equipment was £4.0m (H1 25: £2.3m), with the Group continuing to invest in a range of capital projects across all three divisions. The £5.5m capital investment for the update and expansion of the Group's aluminium cast house production capabilities in Hendersonville, US, completed in the period with final payments of £1.5m.
The Group has net cash of £7.1m (H1 25: £17.1m; FY 25: £22.9m), comprising cash of £17.6m (H1 25: £18.8m; FY 25: £22.9m), bank overdrafts of £2.2m (H1 25: £1.7m; FY 25: £nil) and borrowings of £8.3m, (H1 25: £nil; FY 25: £nil). Borrowings were drawn to help fund the Drache acquisition. Cash and cash equivalents held in the UK are subject to a Composite Account System, which is a banking offset arrangement that allows overdrafts to be set-off against cash balances for interest calculation purposes. The Group has lease liabilities of £14.6m (H1 25: £14.2m; FY 25: £14.4m).
Return on capital employed
The Group's adjusted post-tax return on capital employed was 14.0% (H1 25: 13.8%). Excluding the impact of goodwill, acquired intangible assets and retirement benefit obligations, the adjusted post-tax return on operating capital employed was 32.7% (H1 25: 33.7%).
Acquisition
On 12 January 2026, the Group acquired 100% of the share capital of Drache. Provisional cash consideration of £17.8m was paid in January 2026. Further details are provided in note 7.
Events after the reporting date
On 19 June 2026, the Group agreed to acquire, subject to regulatory approval, 100% of the share capital of GV for total consideration of €6.7m, of which €5.7m will be paid on completion and €1.0m paid in three equal instalments in January 2027, 2028 and 2029. Regulatory approval is expected to take up to two months. GV, located near Turin, Italy, will join the Group's Aerospace & Industrial division.
On 19 June 2026, the Group acquired 100% of the share capital of Carekem, a UK laboratory servicing company for £1.1m, of which £0.9m was paid in June. Carekem is a small UK bolt-on acquisition to Seal Analytical within the Laboratory division.
James Mills
Chief Financial Officer
Related parties
Other than the remuneration of key management personnel, there were no related party transactions in the six months ended 31 May 2026 (H1 25: 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 2025. There have been no significant changes in the period.
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 2026.
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 |
||
|
|
|
|
H1 26 |
|
H1 25 |
|
|
Note |
|
Unaudited |
|
Unaudited |
|
Continuing operations |
|
|
£'000 |
|
£'000 |
|
Revenue |
1,2 |
|
106,207 |
|
97,698 |
|
Cost of sales |
|
|
(68,073) |
|
(62,960) |
|
Gross profit |
|
|
38,134 |
|
34,738 |
|
Other operating expenses |
|
|
(25,444) |
|
(22,790) |
|
Adjusted operating profit |
1,2 |
|
13,840 |
|
12,572 |
|
Adjustments: |
|
|
|
|
|
|
Amortisation of acquired intangible assets |
|
|
(893) |
|
(624) |
|
Other acquisition-related costs |
|
|
(257) |
|
- |
|
Operating profit |
1,2 |
|
12,690 |
|
11,948 |
|
Finance costs |
|
|
(670) |
|
(622) |
|
Profit before tax |
|
|
12,020 |
|
11,326 |
|
Adjusted income tax expense |
1 |
|
(2,974) |
|
(2,630) |
|
Adjustments: |
|
|
|
|
|
|
Tax effect of adjustments to operating profit |
|
|
252 |
|
156 |
|
Income tax expense |
|
|
(2,722) |
|
(2,474) |
|
Profit for the period |
|
|
9,298 |
|
8,852 |
|
Profit attributable to: |
|
|
|
|
|
|
- Owners of the parent |
|
|
9,304 |
|
8,767 |
|
- Non-controlling interests |
|
|
(6) |
|
85 |
|
Profit for the period |
|
|
9,298 |
|
8,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (basic) |
3 |
|
20.2p |
|
19.0p |
|
Earnings per share (diluted) |
3 |
|
20.1p |
|
19.0p |
|
|
|
|
|
|
|
|
Adjusted earnings per share (basic) |
3 |
|
22.1p |
|
20.0p |
|
Adjusted earnings per share (diluted) |
3 |
|
22.0p |
|
20.0p |
Condensed consolidated statement of comprehensive income
For the six months ended 31 May
|
|
|
Six months ended 31 May |
||
|
|
|
H1 26 Unaudited £'000 |
|
H1 25 Unaudited £'000 |
|
|
|
|
||
|
Profit for the period |
|
9,298 |
|
8,852 |
|
Other comprehensive income/(loss) |
|
|
|
|
|
Items that will not be reclassified to profit and loss: |
|
|
|
|
|
Actuarial gain in defined benefit pension plans net of tax |
517 |
|
474 |
|
|
Items that may be subsequently reclassified to profit and loss: |
|
|
|
|
|
Exchange loss on translation of foreign subsidiaries |
(1,916) |
|
(4,113) |
|
|
Total other comprehensive loss for the period |
(1,399) |
|
(3,639) |
|
|
Total comprehensive income for the period |
|
7,899 |
|
5,213 |
|
Comprehensive income attributable to: |
|
|
|
|
|
- Owners of the parent |
|
7,905 |
|
5,128 |
|
- Non-controlling interests |
|
(6) |
|
85 |
|
Total comprehensive income for the period |
|
7,899 |
|
5,213 |
|
|
|
|
|
|
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 |
H1 26 Unaudited |
|
H1 25 Unaudited |
|
FY 25 Audited |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Non-current assets |
|
|
|
|
|
|
|
Property, plant and equipment |
|
38,232 |
|
29,019 |
|
32,630 |
|
Right-of-use assets |
|
13,671 |
|
13,215 |
|
13,466 |
|
Goodwill and other intangible assets |
|
97,407 |
|
87,054 |
|
87,926 |
|
|
|
149,310 |
|
129,288 |
|
134,022 |
|
Current assets |
|
|
|
|
|
|
|
Inventories |
|
37,694 |
|
30,173 |
|
32,955 |
|
Trade and other receivables |
|
37,776 |
|
32,187 |
|
33,690 |
|
Derivative financial instruments |
|
16 |
|
280 |
|
32 |
|
Cash |
|
17,582 |
|
18,810 |
|
22,873 |
|
|
|
93,068 |
|
81,450 |
|
89,550 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
(31,216) |
|
(25,713) |
|
(29,538) |
|
Bank overdrafts |
|
(2,211) |
|
(1,737) |
|
- |
|
Borrowings |
|
(8,278) |
|
- |
|
- |
|
Current tax liabilities |
|
(510) |
|
(1,824) |
|
(242) |
|
Lease liabilities |
|
(2,653) |
|
(2,175) |
|
(2,445) |
|
Provisions |
5 |
(3,174) |
|
(3,353) |
|
(2,982) |
|
|
|
(48,042) |
|
(34,802) |
|
(35,207) |
|
Net current assets |
|
45,026 |
|
46,648 |
|
54,343 |
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Deferred tax liability |
|
(7,338) |
|
(3,688) |
|
(4,933) |
|
Retirement benefit obligations |
|
(1,133) |
|
(3,375) |
|
(3,335) |
|
Other payables |
|
- |
|
- |
|
(45) |
|
Lease liabilities |
|
(11,971) |
|
(12,057) |
|
(11,986) |
|
Provisions |
5 |
(402) |
|
(366) |
|
(385) |
|
|
|
(20,844) |
|
(19,486) |
|
(20,684) |
|
Net assets |
|
173,492 |
|
156,450 |
|
167,681 |
|
|
|
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
|
|
Share capital |
|
930 |
|
930 |
|
930 |
|
Share premium account |
|
38,442 |
|
38,407 |
|
38,421 |
|
Cumulative translation reserve |
|
6,233 |
|
5,146 |
|
8,149 |
|
Retained earnings |
|
127,744 |
|
111,754 |
|
120,032 |
|
Equity attributable to owners of the parent |
173,349 |
|
156,237 |
|
167,532 |
|
|
Non-controlling interests |
143 |
|
213 |
|
149 |
|
|
Total equity |
173,492 |
|
156,450 |
|
167,681 |
|
The interim financial information was approved by the Board of Directors on 26 June 2026 and was signed on its behalf by:
Hooman Caman Javvi James Mills
Chief Executive Officer Chief Financial Officer
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 |
H1 26 Unaudited |
|
H1 25 Unaudited |
|
|
|
£'000 |
|
£'000 |
|
Cash flows from operating activities |
|
|
|
|
|
Cash generated from operations |
6 |
9,704 |
|
10,196 |
|
Interest paid |
|
(224) |
|
(168) |
|
Tax paid |
|
(1,818) |
|
(2,092) |
|
Net cash generated from operating activities |
|
7,662 |
|
7,936 |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Interest received |
|
38 |
|
20 |
|
Acquisition of subsidiaries (net of cash acquired) |
|
(17,182) |
|
- |
|
Purchase of property, plant and equipment |
|
(3,865) |
|
(2,247) |
|
Purchase of intangible assets |
|
(127) |
|
(36) |
|
Net cash used in investing activities |
|
(21,136) |
|
(2,263) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from issue of ordinary shares |
|
21 |
|
- |
|
Purchase of Employee Benefit Trust shares |
|
(473) |
|
(430) |
|
Proceeds of loans and borrowings |
|
10,477 |
|
- |
|
Repayments of loans and borrowings |
|
(2,199) |
|
- |
|
Repayments of lease liabilities |
|
(1,705) |
|
(1,641) |
|
Net cash generated from/(used in) financing activities |
|
6,121 |
|
(2,071) |
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
|
(7,353) |
|
3,602 |
|
Effects of exchange rate changes |
|
(149) |
|
(270) |
|
|
|
(7,502) |
|
3,332 |
|
Cash and cash equivalents at the beginning of the period |
|
22,873 |
|
13,741 |
|
Cash and cash equivalents at the end of the period |
|
15,371 |
|
17,073 |
Reconciliation of net cash flow to movement in net (debt)/cash
For the six months ended 31 May
|
|
|
Six months ended 31 May |
||
|
|
|
H1 26 Unaudited |
|
H1 25 Unaudited |
|
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
Net cash/(debt) at the beginning of the period |
|
8,442 |
|
(3,715) |
|
(Decrease)/increase in cash and cash equivalents |
|
(7,353) |
|
3,602 |
|
Net movement in borrowings |
|
(8,278) |
|
- |
|
(Increase)/decrease in lease liabilities |
|
(300) |
|
3,173 |
|
Effects of exchange rate changes |
|
(42) |
|
(219) |
|
Net (debt)/cash at end of period |
|
(7,531) |
|
2,841 |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
15,371 |
|
17,073 |
|
Borrowings |
|
(8,278) |
|
- |
|
Net cash |
|
7,093 |
|
17,073 |
|
Lease liabilities |
|
(14,624) |
|
(14,232) |
|
Net (debt)/cash at end of period |
|
(7,531) |
|
2,841 |
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 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 |
|
At 1 December 2025 |
930 |
38,421 |
8,149 |
120,032 |
149 |
167,681 |
|
Profit for the period |
- |
- |
- |
9,304 |
(6) |
9,298 |
|
Other comprehensive loss |
- |
- |
(1,916) |
517 |
- |
(1,399) |
|
Total comprehensive income for the period |
- |
- |
(1,916) |
9,821 |
(6) |
7,899 |
|
Purchase of own shares (held in trust) |
- |
- |
- |
(473) |
- |
(473) |
|
Issue of ordinary share capital |
- |
21 |
- |
- |
- |
21 |
|
Share-based payments (net of tax) |
- |
- |
- |
442 |
- |
442 |
|
Dividends |
- |
- |
- |
(2,078) |
- |
(2,078) |
|
At 31 May 2026 |
930 |
38,442 |
6,233 |
127,744 |
143 |
173,492 |
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 to reflect a more consistent measure of underlying trading performance. 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 26 |
|
H1 25 |
|
Change |
|
Aerospace & Industrial |
|
£'000 |
|
£'000 |
|
|
|
Revenue at constant currency |
|
43,021 |
|
44,187 |
|
(3%) |
|
Exchange |
|
739 |
|
408 |
|
|
|
Revenue as reported |
|
43,760 |
|
44,595 |
|
(2%) |
|
|
|
|
|
|
|
|
|
Laboratory |
|
|
|
|
|
|
|
Revenue at constant currency |
|
32,136 |
|
31,001 |
|
+4% |
|
Exchange |
|
1,040 |
|
1,267 |
|
|
|
Revenue as reported |
|
33,176 |
|
32,268 |
|
+3% |
|
|
|
|
|
|
|
|
|
Metal Melt Quality |
|
|
|
|
|
|
|
Organic revenue |
|
21,052 |
|
19,182 |
|
+10% |
|
Acquisition |
|
6,973 |
|
- |
|
|
|
Revenue at constant currency |
|
28,025 |
|
19,182 |
|
+46% |
|
Exchange |
|
1,246 |
|
1,653 |
|
|
|
Revenue as reported |
|
29,271 |
|
20,835 |
|
+40% |
|
|
|
|
|
|
|
|
|
Group |
|
|
|
|
|
|
|
Organic revenue |
|
96,209 |
|
94,370 |
|
+2% |
|
Acquisition |
|
6,973 |
|
- |
|
|
|
Revenue at constant currency |
|
103,182 |
|
94,370 |
|
+9% |
|
Exchange |
|
3,025 |
|
3,328 |
|
|
|
Revenue as reported |
|
106,207 |
|
97,698 |
|
+9% |
Revenue at constant currency is derived from translating overseas subsidiaries results at fixed constant exchange rates. In H1 26 and H1 25, the rates used were US$1.40:£1 and €1.20:£1, compared with reported rates of US$1.35:£1 (H1 25: US$1.29:£1) and €1.15:£1 (H1 25: €1.20:£1).
Organic revenue is revenue at constant exchange rates adjusted for the impact of acquisitions made in the current period and prior year. The acquisition line above relates to revenue from Drache, acquired in January 2026.
Alternative profit measures (unaudited)
A reconciliation of the Group's adjusted profit measures to the reported IFRS measures is presented below:
|
|
|
H1 26 |
|
|
|
H1 25 |
|
|
|
Adjusted |
Adjustments |
Reported |
|
Adjusted |
Adjustments |
Reported |
|
|
£'000 |
£'000 |
£'000 |
|
£'000 |
£'000 |
£'000 |
|
Operating profit |
13,840 |
(1,150) |
12,690 |
|
12,572 |
(624) |
11,948 |
|
Finance costs |
(670) |
- |
(670) |
|
(622) |
- |
(622) |
|
Profit before tax |
13,170 |
(1,150) |
12,020 |
|
11,950 |
(624) |
11,326 |
|
Income tax expense |
(2,974) |
252 |
(2,722) |
|
(2,630) |
156 |
(2,474) |
|
Profit for the period |
10,196 |
(898) |
9,298 |
|
9,320 |
(468) |
8,852 |
An analysis of adjusting items is given below:
|
|
H1 26 |
|
H1 25 |
|
Affecting operating profit: |
£'000 |
|
£'000 |
|
Amortisation of acquired intangible assets |
(893) |
|
(624) |
|
Other acquisition-related costs |
(257) |
|
- |
|
|
(1,150) |
|
(624) |
|
Affecting tax: |
|
|
|
|
Tax effect of adjustments to operating profit |
252 |
|
156 |
|
Total adjusting items |
(898) |
|
(468) |
Adjusted operating profit excludes:
· the amortisation of intangible assets arising on acquisition of businesses of £0.9m (H1 25: £0.6m); and
· other acquisition-related costs of £0.3m (H1 25: £nil) incurred in relation to the acquisition of Drache Umwelttechnik GmbH, Carekem Limited, and the agreement to acquire GV Filtri Industriali S.r.l..
Adjusted earnings before interest, tax, depreciation, and amortisation of intangible assets ("EBITDA")
The Group's adjusted EBITDA is determined as follows:
|
|
H1 26 |
|
H1 25 |
|
|
£'000 |
|
£'000 |
|
Operating profit |
12,690 |
|
11,948 |
|
Amortisation of acquired intangible assets |
893 |
|
624 |
|
Other acquisition-related costs |
257 |
|
- |
|
Adjusted operating profit |
13,840 |
|
12,572 |
|
Depreciation of property, plant and equipment |
2,165 |
|
1,722 |
|
Depreciation of right-of-use assets |
1,351 |
|
1,273 |
|
Amortisation of other intangible assets |
86 |
|
84 |
|
Adjusted EBITDA |
17,442 |
|
15,651 |
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.
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 cash equivalents, and borrowings.
The segment results for H1 26 are as follows:
|
H1 26 - Unaudited
|
Aerospace & Industrial |
|
Laboratory |
|
Metal Melt Quality |
|
Central |
|
Group |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
Total segment revenue |
43,762 |
|
33,844 |
|
29,271 |
|
- |
|
106,877 |
|
Inter-segment revenue |
(2) |
|
(668) |
|
- |
|
- |
|
(670) |
|
Revenue |
43,760 |
|
33,176 |
|
29,271 |
|
- |
|
106,207 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit/(loss) |
6,057 |
|
5,013 |
|
4,558 |
|
(1,788) |
|
13,840 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortisation of acquired intangible assets |
(391) |
|
(205) |
|
(297) |
|
- |
|
(893) |
|
Other acquisition-related costs |
- |
|
- |
|
- |
|
(257) |
|
(257) |
|
Operating profit/(loss) |
5,666 |
|
4,808 |
|
4,261 |
|
(2,045) |
|
12,690 |
|
Finance costs |
- |
|
- |
|
- |
|
(670) |
|
(670) |
|
Profit/(loss) before tax |
5,666 |
|
4,808 |
|
4,261 |
|
(2,715) |
|
12,020 |
The segment results for H1 25 are as follows:
|
H1 25 - 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 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
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 assets and liabilities at 31 May 2026 are as follows:
|
At 31 May 2026 - Unaudited |
Aerospace & Industrial |
|
Laboratory |
|
Metal Melt Quality |
|
Central |
|
Group |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
Segmental assets |
87,973 |
|
72,271 |
|
62,322 |
|
2,230 |
|
224,796 |
|
Cash |
- |
|
- |
|
- |
|
17,582 |
|
17,582 |
|
Total assets |
87,973 |
|
72,271 |
|
62,322 |
|
19,812 |
|
242,378 |
|
|
|
|
|
|
|
|
|
|
|
|
Segmental liabilities |
(24,403) |
|
(14,101) |
|
(10,354) |
|
(8,406) |
|
(57,264) |
|
Retirement benefit obligations |
- |
|
- |
|
- |
|
(1,133) |
|
(1,133) |
|
Bank overdrafts |
- |
|
- |
|
- |
|
(2,211) |
|
(2,211) |
|
Borrowings |
- |
|
- |
|
- |
|
(8,278) |
|
(8,278) |
|
Total liabilities |
(24,403) |
|
(14,101) |
|
(10,354) |
|
(20,028) |
|
(68,886) |
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 30 November 2025 are as follows:
|
At 30 November 2025 - Audited |
|
|
|
|
|
|
|
|
|
|
|
Aerospace & Industrial |
|
Laboratory |
|
Metal Melt Quality |
|
Central |
|
Group |
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
Segmental assets |
86,731 |
|
72,388 |
|
39,343 |
|
2,237 |
|
200,699 |
|
Cash |
- |
|
- |
|
- |
|
22,873 |
|
22,873 |
|
Total assets |
86,731 |
|
72,388 |
|
39,343 |
|
25,110 |
|
223,572 |
|
|
|
|
|
|
|
|
|
|
|
|
Segmental liabilities |
(26,096) |
|
(11,936) |
|
(6,452) |
|
(8,072) |
|
(52,556) |
|
Retirement benefit obligations |
- |
|
- |
|
- |
|
(3,335) |
|
(3,335) |
|
Bank overdrafts |
- |
|
- |
|
- |
|
- |
|
- |
|
Borrowings |
- |
|
- |
|
- |
|
- |
|
- |
|
Total liabilities |
(26,096) |
|
(11,936) |
|
(6,452) |
|
(11,407) |
|
(55,891) |
Geographical analysis
|
|
H1 26 Unaudited |
|
H1 25 Unaudited |
|
||
|
Revenue |
By destination £'000 |
By origin £'000 |
|
By destination £'000 |
By origin £'000 |
|
|
United Kingdom |
10,401 |
34,190 |
|
11,178 |
24,794 |
|
|
Continental Europe |
30,202 |
21,271 |
|
26,587 |
25,589 |
|
|
United States of America |
43,334 |
47,187 |
|
37,478 |
41,589 |
|
|
Other North America |
2,099 |
- |
|
2,422 |
- |
|
|
South America |
614 |
- |
|
975 |
- |
|
|
Asia |
18,053 |
3,559 |
|
16,993 |
5,726 |
|
|
Africa |
1,504 |
- |
|
2,065 |
- |
|
|
|
106,207 |
106,207 |
|
97,698 |
97,698 |
|
3. Earnings per share ("EPS")
|
|
H1 26 Unaudited |
|
H1 25 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 |
9,304 |
|
|
|
8,767 |
|
|
|
Shares in issue |
|
46,499,408 |
|
|
|
46,496,553 |
|
|
Shares owned by the Employee Benefit Trust |
|
(373,332) |
|
|
|
(352,474) |
|
|
Basic EPS |
9,304 |
46,126,076 |
20.2 |
|
8,767 |
46,144,079 |
19.0 |
|
Dilutive share options outstanding |
- |
192,259 |
(0.1) |
|
- |
26,988 |
- |
|
Diluted EPS |
9,304 |
46,318,335 |
20.1 |
|
8,767 |
46,171,067 |
19.0 |
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 26 |
|
H1 25 |
||||
|
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 |
9,304 |
|
|
|
8,767 |
|
|
|
Adjusting items (note 1) |
898 |
|
|
|
468 |
|
|
|
Adjusted profit -attributable to owners of the parent |
10,202 |
|
|
|
9,235 |
|
|
|
Adjusted Basic EPS |
10,202 |
46,126,076 |
22.1 |
|
9,235 |
46,144,079 |
20.0 |
|
Adjusted Diluted EPS |
10,202 |
46,318,335 |
22.0 |
|
9,235 |
46,171,067 |
20.0 |
4. Dividends per share
|
|
H1 26 |
|
H1 25 |
||
|
|
Unaudited |
|
Unaudited |
||
|
|
Per share Pence |
£'000 |
|
Per share Pence |
£'000 |
|
Final dividend approved - in respect of prior year |
4.5 |
2,078 |
|
4.2 |
1,939 |
The final dividend approved for the year ended 30 November 2025 was paid to shareholders on 8 June 2026.
The Directors have declared an interim dividend of 2.4 pence (H1 25: 2.2 pence) per share to be paid on 21 August 2026 to shareholders on the register at the close of business on 17 July 2026; the ex-dividend date is 16 July 2026.
5. Provisions
|
|
|
|
|
Dilapidations £'000 |
|
Warranty £'000 |
|
Total £'000 |
|
At 1 December 2025 |
|
|
|
385 |
|
2,982 |
|
3,367 |
|
Additional charge in the period |
|
|
|
- |
|
289 |
|
289 |
|
Utilisation of provision |
|
|
|
- |
|
(90) |
|
(90) |
|
Unwind of discount |
|
|
|
17 |
|
- |
|
17 |
|
Exchange |
|
|
|
- |
|
(7) |
|
(7) |
|
At 31 May 2026 |
|
|
|
402 |
|
3,174 |
|
3,576 |
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. Cash generated from operations
|
|
|
H1 26 Unaudited £'000 |
|
H1 25 Unaudited £'000 |
|
Operating profit |
|
12,690 |
|
11,948 |
|
Adjustments for: |
|
|
|
|
|
Depreciation of property, plant and equipment |
|
2,165 |
|
1,722 |
|
Depreciation of right-of-use assets |
|
1,351 |
|
1,273 |
|
Amortisation of acquired intangible assets |
|
893 |
|
624 |
|
Amortisation of other intangible assets |
|
86 |
|
84 |
|
Fair value movement of derivatives through profit and loss |
|
16 |
|
(313) |
|
Share-based payments |
|
422 |
|
357 |
|
Operating cash flows before movement in working capital |
|
17,623 |
|
15,695 |
|
(Increase)/decrease in inventories |
|
(2,623) |
|
1,097 |
|
Increase in trade and other receivables |
|
(1,743) |
|
(1,496) |
|
Decrease in trade and other payables |
|
(1,599) |
|
(3,061) |
|
Increase in provisions |
|
194 |
|
133 |
|
Increase in working capital |
|
(5,771) |
|
(3,327) |
|
Post-employment benefits |
|
(2,148) |
|
(2,172) |
|
Cash generated from operations |
|
9,704 |
|
10,196 |
7. Acquisition
On 12 January 2026, the Group acquired 100% of the share capital of Drache Umwelttechnik GmbH ("Drache"). Founded in 1984 and headquartered in Diez, Germany, Drache is active in the development, manufacture, and distribution of filters, consumables, and equipment for the molten metal industry, and is a leading supplier to the aluminium filtration market. Drache joins the Group's Metal Melt Quality division, bringing complementary products and engineering experience, while expanding the division's global reach with a new European base alongside its American and Asian operations.
Provisional cash consideration of £17.8m was paid in the period (£17.2m net of cash acquired). In the period since acquisition, Drache has contributed £7.3m of revenue (£7.0m at constant currency), £0.8m of adjusted operating profit and £0.5m of operating profit to the Group's results.
The following table sets out the provisional cash consideration paid, together with the provisional fair value of assets acquired and liabilities assumed:
|
|
Total |
|
|
£'000 |
|
Provisional cash consideration |
17,773 |
|
Provisional fair value of net assets acquired (below) |
(11,070) |
|
Goodwill |
6,703 |
|
|
Provisional fair value |
|
|
£'000 |
|
Property, plant and equipment (including right-of-use assets) |
4,574 |
|
Trademark, customer order book and relationships (acquired intangible assets) |
4,620 |
|
Inventories |
2,407 |
|
Trade and other receivables |
2,850 |
|
Net cash |
591 |
|
Deferred tax |
(1,732) |
|
Trade and other payables (including lease liabilities) |
(2,240) |
|
Provisional fair value of net assets acquired |
11,070 |
An independent valuation of the identifiable intangible assets has been performed. The provisional fair value of acquired intangible assets comprises trademarks of £1.6m, a customer order book of £0.3m and customer relationships of £2.7m.
The goodwill is attributable to non-contractual relationships, the synergies between the business acquired and the operations of the Group, and the potential to develop the business acquired. None of these meet the criteria for recognition of intangible assets separable from goodwill. The goodwill recognised is attributable to the Metal Melt Quality division and is not expected to be deductible for income tax purposes.
The fair value of trade and other receivables of £2.9m includes net trade receivables of £2.9m, all of which is expected to be collectible.
These provisional fair values may be adjusted in future in accordance with IFRS 3 Business Combinations.
8. Exchange rates
Exchange rates for the US dollar and Euro during the period were:
|
|
Average rate H1 26 |
Average rate H1 25 |
Closing rate at 31 May 26 |
Closing rate at 30 Nov 25 |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
US dollar |
1.35:£1 |
1.29:£1 |
1.35:£1 |
1.33:£1 |
|
Euro |
1.15:£1 |
1.20:£1 |
1.16:£1 |
1.14:£1 |
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 2026 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 2025, 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 2025. There are no new standards or amendments effective from 1 December 2025 which are expected to 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 2025.
After having made appropriate enquiries including a review of progress against the Group's budget for 2026, its current trading and medium-term plans, and taking into account the banking facilities available until August 2029, 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 2025, which were approved by the Board of Directors on 6 February 2026, 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 2025. 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, Norfolk, 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 2025. A list of current Directors is maintained on the Porvair plc website, www.porvair.com.
On behalf of the board
|
Hooman Caman Javvi |
James Mills |
|
Chief Executive Officer 26 June 2026 |
Chief Financial Officer |
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 2026 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 2026 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
25 Farringdon Street
London
EC4A 4AB
26 June 2026
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