King’s Lynn-based Porvair eyes further deals
PUBLISHED: 06:00 25 June 2013
King’s-Lynn based filtration specialist Porvair said it is close to snapping up another business just weeks after announcing a £3.22m swoop for an American company.
The EDP Top 100 firm secured Chand Eisenmann Metallurgical (CEM) at the beginning of June to boost cross-selling opportunities in microfiltration and accelerate its USA growth.
And now its looking to continue its acquisition drive by buying out a new firm – although it cannot reveal the details for commercial reasons.
It comes as the company announced in its half-year trading results that it had grown revenues by 8pc, from £35.9m in 2012 to £38.6m this year, while also trimming 22pc of its net debt to £3m.
And it also mounted stronger pre-tax profits this year with a 27pc increase to £3.1m – up £700,000 on last year.
But it said its debt is likely to rise again, as it mounts further takeover deals this year.
Ben Stocks, chief executive of the filtration and environmental technology group, said acquisitions were important, but the firm’s main focus was delivering a steady stream of new products for its clients across the globe.
He said: “We are looking at developing new products all the time, that is the focus as well as making another small acquisition this year.
“We are optimistic for the next five months of the year, and given their are no economic shocks, 2013 will be a profitable year for us.”
He added: “Demand across the group is generally good, with weakness in some US markets more than offset by strength elsewhere. The fundamentals of the markets in which the group operates – aviation, energy and industrial process, environmental laboratory supplies, and molten metals – look satisfactory.
He added: “Porvair’s strategic direction and operating objectives remain consistent and continue to produce good results.”
In February, Porvair sealed a deal with Reliance Industries, India’s largest private enterprise company, to work on a gasification plant in Jamnagar.
And in January, it announced plans to expand its manufacturing division in China, investing £1m in relocating from Wuhan, China, to a new operation in Xiaogan province.
Meanwhile its microfiltration division also secured a £11.3m contract with the UK government for the design and manufacture of a nuclear remediation filtration system.
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