For the six months ended 31 May the firm reported a pre-tax profit of £7.4mln, 41% higher than the prior year, while revenues climbed 21% to £72mln.
Porvair attributed the strong increase in profits to higher volumes through its plants and better operating efficiencies, while strength in its aerospace division had offset a slower start to the year in markets affected by the US-China trade war.
As a result of the improved performance, the company upped its interim dividend to 1.7p per share.
Looking ahead, chief executive Ben Stocks said the company’s order books for the second half of the year were “robust” and that its new product pipeline and investment in capacity had continued.
Peel Hunt ups target price
In a note, analysts at Porvair’s ‘house’ broker Peel Hunt upped their target price to 590p from 580p and reiterated their ‘buy’ rating on the back of what they said were “another good set of results” from the filter maker, while also upgrading their full year pre-tax profit forecasts to £14.3mln from £14mln previously.
“We like Porvair for its positive earnings momentum, its value-adding business model and the designed in nature of much of its revenues”, the broker said, adding that they saw scope for further upgrades later in the year.
In mid-morning Porvair shares were 4.2% higher at 587.9p.