Porvair rebounds with new products

Porvair, the maker of microporous synthetic materials which issued two profits warnings last year, signalled a recovery in its fortunes yesterday, alongside plans for the launch of a revolutionary breathable sock.

Announcing a 36 per cent rise in interim profits to pounds 2.1m, the chairman, John Morgan, said the second six months would see a continuation of the growth seen in the first half to May.

"Although Porvair Technology and Comfort Barrier Systems are not yet fulfiling their potential, all other companies are experiencing good quality growth and the group as a whole is expected to benefit," Mr Morgan said.

He also expressed excitement over the company's new products currently under development, including what are claimed will be the most advanced waterproof socks on the market.

The socks, on which Porvair has spent around pounds 250,000 in the first half, will be launched under the Porelle brand in the US and Europe next week. They are being targeted at military service users and hikers and are likely to retail at just short of pounds 30 a pair.

The results, which were accompanied by news of an 11 per cent rise in the half-way dividend to 2.1p and an upbeat statement, sent Porvair shares 9p higher to 281.5p yesterday. However, they remain some way adrift from the high of 431p struck in May last year, ahead of the announcement in July that one of the company's products had been hit by weak demand and another had lost a major customer.

The problem appeared to become more widespread by the autumn and Porvair issued a second warning in November, bracing analysts for lower than expected results.

However, one of the main problem divisions, Porvair International, involved in synthetic leather and permeable fabrics, has mounted a strong recovery in the first half. Operating profits have bounced from close to break- even last time, when it lost the big order, to pounds 1.1m in the latest period, making it the biggest contributor.