London-listed Porvair missed expectations in the firm’s annual results, with adjusted profit before tax falling three per cent, compared to analyst predictions of a five per cent rise.
The company, which makes filtration and separation equipment for aviation, energy and environmental technology businesses, saw revenue rise five per cent to £94.6m, but this was not enough to stop profit falling.
Revenue rose by over ten per cent in the group’s aerospace and industrial arm, as well as rising similarly strongly in its laboratory business. Petrochemical sales rose a whopping 43 per cent.
However, revenue fell eleven per cent in its metal melt quality business, manufacturing filters for molten metals. While this is the smallest arm of its business, this still impacted profit, with the company blaming a de-stocking in US markets for a decline in demand.
Adjusted operating profit at the company did manage to creep up by two per cent to £12.5m but adjusted basic earnings per share dropped four per cent to 19.5 pence.
“Porvair looks to us in good shape for any incoming CEO to replace long-standing and highly-respected Ben Stocks,” said Peel Hunt analyst Andrew Sheperd-Barron.
Stocks added: “2024 is unfolding as expected. Over the first six months, strength in aerospace and petrochemical markets, helped by the benefit of 2024 acquisitions, has offset weakness in industrial and laboratory consumables and foreign exchange headwinds.
“This has been in line with management expectations. The trading outlook for the second half of the year is positive. Order books across the Group are strengthening with lead times now returned to more traditional levels.
“The benefits of the 2023 acquisitions continue to come through, and several larger petrochemical orders will start to ship towards the end of the year.”