Trading Update and Covid-19 Statement
For immediate release 8 April 2020
Porvair plc
("Porvair" or the "Group")
Trading Update and Covid-19 Statement
Porvair plc ("Porvair" or "the Group"), the specialist filtration and environmental technology group, today issues a trading update and comment on COVID-19.
The overriding priority for Porvair management teams over the last few weeks has been the wellbeing of staff and their families. Health and safety guidelines for each country are being followed and physical distancing at work is being observed. Staff in China remained on full pay throughout a seven week shut-down and are now all back at work. Where staff members elsewhere in the Group have needed to self-isolate similar arrangements have been made.
Porvair is doing what it can to help governments and health services. We are supplying filter components for several of the consortia now building ventilator and breathing apparatus: one in France; one in Sweden; three in the US; and the Mercedes AMG/Formula 1 consortium in the UK. Porvair is supplying consumables for dozens of US testing laboratories, including the Mayo Clinic; is producing millions of pipette tips for COVID-19 testing kits; and thousands of filters for Diagnostics in the Real World. Shifts have been added to produce chromatography bed supports and pharmaceutical grade water filters. The Board anticipates further programmes will emerge as the crisis continues. Whilst these orders are relatively small they illustrate the capabilities and commitment of our staff.
In financial terms, the impact on the Group will depend on the duration of the COVID-19 pandemic and on the severity of its economic consequences. The Board of Porvair has considered various outlook scenarios, stress testing the Group for different levels of challenge, plant by plant. The Group has a strong balance sheet and is expected to be both profitable and modestly cash generative through the balance of the year in all but the most pessimistic scenarios. The Board does not believe it needs to change its final dividend recommendation.
In its outlook statement dated 31 January 2020 the Group noted its positive exposure to global growth trends including tighter environmental regulations; growth in analytical science; the expansion of air travel; the replacement of plastic by aluminium and the drive for manufacturing process efficiency. Looking to 2021 and beyond the Group expects these trends to continue. Indeed, 2020 has started well with revenues ahead of the prior year in the four months to the end of March. All plants are currently open and April is busy. However, there will no doubt be disruption during the rest of the year. Demand, in sectors including aviation, automotive and industrial manufacturing, is likely to decline. Other sectors, mainly in the Laboratory division, are expected to remain busy. As we wait to see how the economic consequences of COVID 19 develop, the Board therefore considers it prudent to withdraw guidance until the outlook is more certain.
Should the situation change significantly, the Group will issue a further update at its AGM on 21 April 2020.
For further information, please contact:
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Porvair plc |
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01553 765 500 |
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Ben Stocks, Group Chief Executive Chris Tyler, Group Finance Director |
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Buchanan Communications |
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0207 466 5000 |
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Charles Ryland / Steph Watson |
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Notes to editors
Porvair plc
Porvair is a group of specialist filtration and environmental technology businesses. Its businesses design and manufacture a range of bespoke consumable filtration products that are used in a range of niche filtration markets. It operates in three divisions: Aerospace & Industrial; Laboratory; and Metal Melt Quality.
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