Porvair swings to interim loss

22nd Jun 2009 08:01

Industrial filter maker Porvair swung to a half-year loss, due mainly to redundancy costs in the US, but said it believes it will prosper when conditions improve.The loss before tax was £0.6m in the six month ended 31 May compared with a profit of £1.9m last time. Revenues were up 5% to £27m.The group said results were dominated by significant changes in market conditions, particularly in the US, where demand in some automotive, aluminium and general industrial segments fell by as much as 50%. As a result, staff numbers in some US operations have been cut by 40%, resulting in a one-off charge of £600,000. Discounting the exceptional restructuring costs the group broke even in the period."Looking ahead we see opportunities for Porvair. Although trading conditions in Metals Filtration have been difficult, it appears that demand has stabilised, albeit at levels well below those seen for more than a decade," said chief executive Ben Stocks."On balance the board believes that with its spread of markets served, new product introductions and revised US cost base, Porvair will prosper when conditions improve," he added.