Porvair

Porvair is a steady grower of earnings and dividends. It offers investors useful exposure to specialist industrial applications, filtration and environmental technologies and can point to a long track record of earnings growth, modest levels of debt and exposure to growth industries such as clean water, environmental regulation and aerospace.

The company has excellent technical capabilities and is an important player in its markets. We also see scope for further acquisition-led growth.

Porvair operates 22 operating plants, including facilities in regions such as India and China, with its largest site generating between 20% and 25% of group revenue. Supply chain risks include workforce health and safety, particularly in manufacturing locations where worker protections are less strong.

Employees can face hazards from machinery, moving equipment and electrical systems, increasing the risk of injury, legal liability and operational disruption.

Although exposure is below our 10% threshold, Porvair has some involvement in less favourable industries. The company supplies filtration systems to industrial and commercial markets, including aviation components such as flight control systems, braking and landing gear and fuel tanks. We are more relaxed about these products as they are solid into non-military applications.

Porvair also supplies products to the nuclear power and oil, gas and petrochemical sectors, which are energy-intensive and carry environmental concerns.