Porvair PLC Trading Update and Covid-19 Statement (1263J)
08 Abril 2020 - 1:00AM
UK Regulatory
TIDMPRV
RNS Number : 1263J
Porvair PLC
08 April 2020
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:
Porvair plc 01553 765 500
Ben Stocks, Group Chief Executive
Chris Tyler, Group Finance Director
Buchanan Communications 0207 466 5000
Charles Ryland / Steph Watson
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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END
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