PORVAIR is a specialist environmental technology company involved in metals filtration and micro-filtration.
Operating in the UK, the US and Germany, it serves a range of market segments, including aviation, molten metal, clean energy, clean wat
er and life sciences.
Porvair has not been immune to the effects of the recession. At a recent update, the company confirmed its micro-filtration unit, which makes filters for the aviation and energy industries, saw revenues down 7 per cent between the end of June and the beginning of October.
However, things have been improving, with a number of important new contract wins, including in the nuclear sector. Half of the UK-based micro-filtration business is exported and, as a result, the recent weakness in sterling should be helping; last year this division generated about 80 per cent of profits.
The metals filtration business, which trades as Selee Corporation, makes porous ceramic filters for the filtration of molten metal. It is the world leader in the filtration of cast house aluminium, while other important markets include iron and steel. This division's fortunes have a correlation with the outlook for the automobile industry and here there are signs of a developing upturn, which would have a very positive effect on its trading prospects.
Some 22 per cent of the group's equity is held by GGG SpA, which is a vehicle for the founder of the Italian UFI Filters, a stake that might, one day, be used as a platform for a bid. Porvair's equity market is tight but it could react well to any developing economic upturn, in which its core markets would be in the van.
• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.
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