PUNT OF THE WEEK: Porvair’s filtration and environmental technology could play a part in a green future
Porvair specialises in filtration and environmental technology
What is it?
A small-cap company based in King’s Lynn, Norfolk, that specialises in filtration and environmental technology, some of which helps control pollution from the oil and gas and aviation industries. The equipment usually has to be replaced or serviced regularly.
What’s the latest?
Half-year profits to May 31 rose 19 per cent to £8.8million and it kept its dividend at 1.7p. But it also scrapped any guidance for the second half and has warned Covid-19 will disrupt business.
Who backs it?
Italian industrialist Giorgio Girondi is the biggest shareholder, with a 17 per cent slice. Big-name institutional backers include Liontrust, Aberdeen Standard and Royal London.
Why should you invest?
Graham Spooner, investment research analyst at The Share Centre, says: ‘We like the fact that their products benefit the environment and green issues, which will increasingly impact everyone in the future.’
And why shouldn’t you?
He says: ‘The group does have exposure to the aerospace industry, which has been hit hard by the pandemic, and clients could defer or cancel orders.’