29th Jun 2020 11:17
(Alliance News) - Porvair PLC on Monday reported higher interim profit thanks to reduced operating expenses but has yet to reinstate guidance.
The filtration and environmental technology company has its headquarters in Kings Lynn, Norfolk. It posted a GBP8.8 million pretax profit for the six months ended May 31, up 19% from GBP7.4 million a year before.
The improved profit resulted from a drop in other operating expenses to GBP15.1 million from GBP16.8 million.
While revenue was 1.7% higher as GBP73.2 million from GBP72.0 million, cost of sales increased 2.9% to GBP48.9 million from GBP47.5 million, leaving gross profit slightly lower at GBP24.4 million compared to GBP24.5 million in the prior year.
Porvair maintained its interim dividend at 1.7 pence per share.
Chief Executive Ben Stocks said: "The outlook for the next six months is unpredictable and, as previously announced, until patterns of demand stabilise the group has withdrawn earnings guidance. During the Covid-19 pandemic, management's primary focus has been on the wellbeing of staff, with all operations observing safety guidelines and social distancing. Management's second priority has been to prepare for recessionary conditions should they arise."
Stocks added: "The near term may be challenging, but the board remains confident that the group is well positioned and remains resilient. We expect demand for emissions control, clean water, process efficiency and laboratory consumables to revert to normal levels as economies recover. Our balance sheet enables us to continue investing in new products, engineering skills and productivity improvements to ensure the group recovers strongly when conditions allow."
Shares in Porvair were up 0.5% at 588.75 pence in London on Monday morning.
By Anna Farley; [email protected]
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