StockMarketWire.com
Porvair has won a new contract expected to be worth more than $10m. Its Microfiltration division has signed an agreement with a Chinese state oil company to supply char filtration equipment to a coal-to-substitute natural gas (SNG) gasification project to be built at an oil refinery in Guangdong, China.

Deliveries are expected to commence in 2016 with commissioning during 2017 and 2018.

CEO Ben Stocks commented:
"Gasification filtration is an important market for Porvair and this is another significant contract win. The project uses similar technology to that supplied to POSCO, Reliance and SG Solutions and is similar in scale to the POSCO installation.

"After-market opportunities exist for all four projects, and a set of spares for POSCO will be shipped in 2015."

StockMarketWire.com
Porvair has booked a FY pretax profit of £8.4m, up 10% on the year. Revenue was up 23% to a record £104.0m. It recommended a final dividend of 2p a share, taking the FY to 3.2p a share, up 10%.

CEO Ben Stocks said 2014 finished well and order books going into 2015 were healthy with the fundamentals of the markets in which Porvair operate looking satisfactory.

"All key initiatives are progressing well and new product development pipelines are promising. Capacity investments made in 2014 and planned for 2015 will allow for growth. The Group has a strong balance sheet, a positive start has been made to the year and the Board looks forward with confidence."

Separately, Porvair announced it has secured spares orders with three of its gasification customers to provide filter elements to installations in the USA, India and Korea. In total the orders amount to additional revenue of $5.5m.

Stocks said: "We are pleased to have received initial commissioning spares orders in what we hope will become long term supply arrangements with POSCO of South Korea and Reliance in India to support their gasification installations.

"Our US customer will take delivery of a re-designed set of spares in 2015 that we expect to have a longer operating life. The new design is proprietary and will strengthen our position in this market."

Superb set of results. Increased revenues % ahead of increased profits % primarily because of influence of large contracts, for which revenues skewed towards 2014 and profits spread 2014-2017. These contracts now starting to produce lucrative spares business. Organic growth looks set to continue and one day they may become a nuisance to a major player. Had hoped for bigger dividend in view of strong cash position, but very happy to leave PRV as my largest holding - thankfully all in ISA. Always dyor.

Closer look at Nov 2014 accounts shows "Accruals and Deferred Income" figure of £15.9M. In 2011, i.e. before the large one-off contracts were taken on, this figure was £5.9M and it has risen steadily since. Given that the "Accruals" element should be fairly constant/rise marginally from year to year, the amount of "Deferred Income" looks very substantial - if PRV have done the work as well as they would be expected to and there are minimal warranty claims, then P&L could get a sizeable boost over next couple of years. Post tax profit figure was £6.3M for the year to Nov 2014 and eps a little over 14p.Broker forecasts for eps next two years are 15p and 16p. That deferred income might well provide room for upgrades, but we shall see. It leaves me with a comfortable feeling, but always dyor.

StockMarketWire.com
Porvair said there will not be a recurrence in 2015 of the unusually high revenues recognised from several large projects in 2014. Total revenues are therefore 4% lower than the prior year, just ahead of management expectation.

"Porvair has made a good start to 2015 with underlying revenue 6% ahead of the same period in the prior year," the company said.

Underlying revenue in Microfiltration was 7% ahead of the prior year and new facilities in New Milton, UK and Caribou, Maine have been completed on time and budget and brought on stream to accommodate growth.

The large projects continue to progress well. Metals Filtration's revenue was 5% ahead of the prior year (3% lower in constant currency). Expansion in Wuhan, China is underway.

"The outlook is encouraging with orders books remaining strong."

Trading update at half year end suggests all still on track. Results due 29th June and unlikely to disappoint, but always dyor.

Another splendid set of figures. Still have a lot of profit to come through from large contracts if these remain on track next couple of years. Mine locked away in ISA., but always dyor.

Muted market reaction to another very solid trading update. Revenues from four large one-off contracts largely booked, but profits being held in "deferred income" for the time being pending finalisation of those contracts. If all goes well - and it seems to be so far - then any warranty claims should be minimal and result would be significant boost to earnings, but always dyor.

StockMarketWire.com
Porvair has continued to trade well throughout the year. Underlying revenues for the year to Nov. 30, 2015, are 8% higher than the prior year and earnings are expected to be ahead of current market expectations.

Order books for the start of 2016 are healthy, it said in a trading update.

"As expected and previously reported, the unusually high revenues recognised from several large projects in the prior year were not repeated in 2015.

"Total revenues are therefore 7% lower than the prior year. Build and commissioning work for the large projects is going well.

"Underlying revenues in the Microfiltration division were 10% ahead of the prior period. Revenues in the Metals Filtration division grew 3% although, following a record prior year, in constant currency, revenues were 4% lower.

"Strong operating cash flow increased net cash above £10m at the year end, achieved despite capital investments of £4.5m, mostly spent on bringing new facilities into operation.

"New plants in the UK and USA were opened in the first half. Production in the expanded China facility has now started. Further investment in US industrial filtration capacity has started and will be complete in 2016."

ACQUISITIONS

On 4 December 2015, the Group's Microfiltration division acquired the goodwill, business and trading assets of TEM. TEM, based in Boise, Idaho, designs and manufactures filters for the microelectronics industry.

The Board sees a very good fit between this business and the Group's Microfiltration operations. The transaction, which is for cash, is expected to be modestly earnings accretive.

Porvair will announce its preliminary results for the year ended 30 November 2015 on Monday 25 January 2016.

I particularly like the "Earnings expected to be ahead of curent market expectations". PRV historically has tended to under promise and over deliver. Mine still locked away in ISA, but always dyor.

Record profits in year to Nov 2015 and now debt free (£10M cash) - always been a strong cash generator. Prospects sound and four large ongoing contracts should give boost to profits over next three years - core business is performing steadily if not spectacularly, but with over 40% now made in USA, some currency headwinds. Share price about where it was 12 months ago, having risen and slipped back, but mine still locked away. DYOR.

Encouraging AGM statment yesterday from this quality outfit. Done very well over the past 5 years and no reason imv why it should not do equally well over the next 5, but always dyor.

Recent half year trading update suggested that profits from large contracts may have more than offset any weakness in metals fitration activities and order books for the second half "healthy". Large buy of 923,000 shares today augurs well ahead of results due 27th June, but always dyor.

RNS suggests M&G has sold 923,000 shares, bought by a Latvian based investment company Vind AV., who paid a modest premium and now hold 3%.

Bit lonely on here, but this has been fine investement for me over the years. Solid results again as expected. Looks like large one off contracts now starting to deliver more profit. Second half "Has started well and order books are healthy". Not obviously cheap, but well run and imo excellent quality. Always dyor

Another excellent trading update. Small enough to be under the radar of most. Quaity does not come cheap, but mine locked away. Always dyor.

Vind AV bought just under 2 million shares at 400p last Friday. Now hold over 6%.

Still lonely on here - hope some of you in this quality share. Another splendid year end trading update and share price has caught up of late. Always dyor.

Another splendid set of results. Not cheap on fundamentals, but outlook remains positive and should be some currency benefits this year if sterling stays weak against US$. Large one-off contracts now nearing completion and should boost profit next couple of years if warranty claims low. Always dyor.

Excellent chart Partridge!

30 Jan Peel Hunt Buy 445.00 450.00 480.00 Reiterates