porvair plc annual report  accounts 201 3
a strong performance
positioned for growth
covs 136 92 tplayout 1  03032014  1343  page 2       overview
01  key performance highlights in 2013
02  porvair at a glance
04  where we operate
      strategic report
06  chairman’s statement 
07  chief executive’s report
08  market overview
10  strategy and business model
12  divisional performance
16  finance director’s review
19  key performance indicators
21  principal risks and uncertainties
25  corporate and social responsibility report
      governance
28  board of directors
29  directors’ report
33  corporate governance
36  report of the audit committee
37  remuneration report
      
      financial statements
      group accounts
47  independent auditors’ report to the 
members of porvair plc group 
50  consolidated income statement
50  consolidated statement of 
comprehensive income
51  consolidated balance sheet
52  consolidated cash flow statement
52  reconciliation of net cash flow to movement in net cashdebt
53  consolidated statement of changes in equity
54  notes to the consolidated financial statements
      company accounts
83  independent auditors’ report to the 
members of porvair plc company
85  parent company balance sheet 
under uk gaap
86  company profitloss for the financial year
86  parent company – reconciliation of movements 
in shareholders’ funds
87  notes to the financial statements
      other information
92  shareholder information
92  financial calendar 2014
ibc  contact details and advisers
      porvair online
      to find out more about porvair
      wwwporvaircom
contents
overview 
inside this year’s report
porvair plc annual report  accounts 2013
key features of 2013
delivering a strong 
performance
how our strategy and business 
model work together
strong niche positions in 
the markets we serve
geographic expansion 
to support key markets
delivering long term 
sustainable growth
read more on page 10 
read more on pages 8 and 9 
read more on pages 4 and 5 
read more on page 11 
read more on pages 1 and 6 to 15
covs 136 92 tplayout 1  03032014  1343  page 3 9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2765
4163
5307
£86m

20
8000
7000
6000
5000
4000
3000
2000
1000
0
1718
3129
£7 8m

25
2010 2011
130
120
110
100
90
80
70
60
50
40
30
20
10
0
2012 2009
27p
52p
73p
101p
127
p

26
90
80
70
60
50
40
30
20
10
0
all amounts shown before exceptional items
7205
8641
7848
4513
6299
2013
2010 2011 2012 2009 2013
2010 2011 2012 2009 2013
2010 2011 2012 2009 2013
127p
£843m

10
overview 
key performance highlights in 2013
552
636
681
765
843
turnover £m
operating profit £’000
profit before tax £’000
basic earnings per share pence
financial highlights
strong financial performance 
ahead of expectations
• revenues grew by 10 to a record for the 
group of £843 million 2012 £765 million
• 25 increase in profit before tax to 
£78 million 2012 £63 million
• basic earnings per share rose 26 to 
127 pence 2012 101 pence
• strong cash generation resulting in net cash 
of £06 million at 30 november 2013 2012 
net debt of £39 million
• £51 million invested in two small acquisitions 
both fully integrated and performing as expected
• final dividend of 18 pence per share
2012 16 pence per share recommended
operating highlights
metals filtration division
• revenue increased to £285 million 
2012 £280 million another record level
• stronger second half driven by margin and 
market share gains from patented products
microfiltration division
• revenue increased 15 to £558 million
2012 £485 million record revenue and
operating profits for this division
• several larger contracts signed and progressing well
• good core business progress in aviation nuclear
and bioscience
• seal analytical revenues up 13
• healthy order position going into 2014
outlook
• high capital investment in 2014 to support long
term organic growth plans
• significant oneoff boost to revenue from large
contracts expected in 2014 with profits spread 
from 2014 to 2017
• board expects steady underlying progress with an
additional beneficial impact from the large contracts
overview strategic 
report
governance financial
statements
other
information
01 porvair plc annual report  accounts 2013
delivering a strong
performance 
read more on pages 6 to 15 
covs 136 92 tplayout 1  03032014  1343  page 4 overview
porvair at a glance
specialist filtration and
environmental technology
porvair is a specialist filtration and environmental technology
group with two operating divisions metals filtration and
microfiltration we employ about 650 people with operations 
in the uk us germany and china
the group serves a range of markets of which aviation energy
and industrial process environmental laboratories and molten
metals are the most important
at the heart of what we do is filtration and engineering expertise
which allows us to solve customer problems across all the
markets we serve
main operating companies
• porvair filtration group
• seal analytical
• porvair sciences
2013 annual sales and revenue growth
markets served
• aviation
• energy  industrial process
• environmental laboratory supplies
what we do
the microﬁltration division principally serves aviation 
environmental laboratory and energy markets
• porvair’s aviation ﬁlters are speciﬁed on almost all 
commercial airframes
• we supply ﬁlter systems and spares principally for the gasiﬁcation 
and nuclear remediation markets
• systems and consumables principally for the laboratory 
analysis of water
• water quality laboratories across the world use porvair’s systems
read more on pages 8 and 9 read more on pages 14 and 15
02 porvair plc annual report  accounts 2013
microfiltration – division
the microfiltration division provides
bespoke filtration solutions to a diverse
range of customers and markets it has
operations in the uk us and germany
and employs 470 people its sales 
are global
£558m
annual sales
15
aviation
30
energy  industrial process
20
environmental laboratory supplies
approximate share 
of group sales
divisional highlights 2013
• revenue increased 15 to 
£558 million 2012 £485 million
record revenue and operating
proﬁts for this division
• several larger contracts signed
and progressing well
• good core business progress in
aviation nuclear and bioscience
• seal analytical revenues up 13
• healthy order position going 
into 2014
15
revenue growth
£86m
operating proﬁt
covs 136 92 tplayout 1  03032014  1343  page 5 overview strategic 
report
governance financial
statements
other
information
03 porvair plc annual report  accounts 2013
metals filtration – division
the metals filtration division serves the
market for the filtration and handling of
molten metal it has operations in the
us and china and employs 180 people 
its sales are global
main operating companies
• selee usa
• selee china
2013 annual sales and revenue growth
read more on page 9 read more on pages 12 to 13 
£285m
annual sales
35
molten metals
approximate share 
of group sales
divisional highlights 2013
• revenue increased to £285
million 2012 £280 million 
to another record level
• stronger second half driven by
margin and market share gains
from patented products
• opened new plant in xiaogan
china
• promising development pipeline
• positive start to 2014
markets served
• aluminium  
• iron foundry  
• super alloys
what we do
provide ‘meltquality’ products – ﬁlters refractories 
coatings – to molten metal customers around the world
• patent protected ﬁlters for the aluminium cast house industry
• patent protected ﬁlters for the ﬁltration of gray and ductile iron 
mainly for the us auto and light truck market
• patent protected super alloy ﬁlters used in the manufacture 
of turbine blades
see market overview pages 8 and 9
2
revenue growth
£24m
operating proﬁt
covs 136 92 tplayout 1  03032014  1343  page 6 overview
where we operate
our global operations
support our key markets
the group has manufacturing operations in the uk us
germany and china and sells its products throughout the
world our strategy is to expand geographically to support
our chosen markets 
04 porvair plc annual report  accounts 2013
ashlandva
caribou me
hendersonville nc
metals filtration
principal plant 
the group continues to expand
its footprint in north america
• the group acquired the trade
and assets of eisenmann
metallurgical in caribou me 
in june 2013 adding powder
metal ﬁltration expertise to 
the usa 
• in 2014 an enlarged us
management team is planning
to expand the caribou facility
• the group acquired the trade
and assets of thomas cain 
in september 2013 adding a
further block digester product
line to seal
• developments continue on next
generation molten metal ﬁlters
for specialist metal alloy ﬁltration
us developments 
revenue by destination 
     americas
46 
 
     uk
21 
 
     asia
18 
 
     row
2 
 
     europe
13 
 
our principal operations
usa
ashland va
caribou me
gilberts il
hendersonville nc
mequon wi
uk
fareham
king’s lynn
new milton
wrexham
europe
hamburg germany
asia
shanghai china
xiaogan china
microﬁltration
metals filtration
mequonwi
gilbertsil
covs 136 92 tplayout 1  03032014  1343  page 7 overview strategic 
report
governance financial
statements
other
information
05 porvair plc annual report  accounts 2013
a new plant in xiaogan china
increases capacity for metals
filtration
• the plant was completed on
time and to budget in 2013
• provides additional capacity to
serve the asian market
germany
xiaoganchina
shanghaichina
fareham uk
microﬁltration  
principal plant
uk
asia developments 
phased investments in the 
uk microﬁltration business 
will increase capacity
• a new plant in new milton 
will provide additional
manufacturing capacity 
• new capacity in fareham will
allow room for further growth
uk  europe developments 
revenue growth coming from us  asia £m
90
80
70
60
50
40
30
20
10
0
others
asia
americas
europe
united kingdom
2007 2013
read more on pages 6 to 15 
covs 136 92 tplayout 1  03032014  1343  page 8 strategic report
chairman’s statement
introduction
i am pleased to report that porvair continues
to make progress against its financial and
strategic objectives
results
revenues in the year to 30 november 2013
were £843 million 2012 £765 million and
profit before tax rose by 25 to £78 million
2012 £63 million these are record results
for the group basic earnings per share were 
127 pence 2012 101 pence an increase 
of 26
cash generated from operations was 
£123 million 2012 £92 million after interest
and tax net cash generated from operating
activities was £97 million 2012 £74 million
at 30 november 2013 the group was net
cash positive for the first time with net cash 
on hand of £06 million 2012 net debt 
of £39 million
dividends
the directors recommend an improved 
final dividend of 18 pence per share 
2012 16 pence making the full year
dividend 29 pence per share 2012 
26 pence an increase of 12
board composition
michael gatenby retired from the board 
at the 2013 agm in april andrew walker 
will retire at the 2014 agm having been a 
director for nine years they have both made 
a substantial contribution to the group’s
direction and strategy during their time on the
board we thank them and wish them well
following the 2013 agm andrew walker
succeeded michael gatenby as senior non
executive director and paul dean succeeded
him as chairman of the audit committee 
paul dean will succeed andrew walker as
senior nonexecutive director following the
2014 agm
governance
the board sets high standards for its
corporate governance and has in place
monitoring systems to ensure that those
standards are upheld throughout the group
the board complied with all aspects of the 
uk corporate governance code throughout
the year ended 30 november 2013 with the
exception of fixed terms of employment for
nonexecutive directors however all of the
directors offer themselves for reelection 
at each agm 
new formats have been adopted for our
strategic and remuneration reports as
required by latest governance guidelines 
for the first time at the 2014 agm shareholders
will have the opportunity to approve the
group’s remuneration policies as well as 
the remuneration report
staff
looking back over the last five or six years it is
remarkable how much has changed at porvair
in sales terms we are almost double the size
we were in 2007 a significant achievement by
our staff this year we have been joined by
employees of eisenmann metallurgical and
thomas cain and we are pleased to welcome
them to the group the board is most grateful
to all porvair’s staff for their hard work and
commitment
current trading and outlook
porvair’s strategic direction remains consistent
and continues to produce good results 
2013 finished well and order books are
healthy the fundamentals of the markets in
which we operate look satisfactory the larger
contracts announced during the year are
progressing well and are expected to have 
a positive impact on the group with their
accounting implications outlined on page 7
the board expects that provided economic
conditions allow the underlying business will
continue to grow the group expects to invest
in additional manufacturing capacity in 2014 
in the uk usa and china to meet growing
demand and notes that the group’s new
product pipeline is promising a positive start
has been made to 2014
charles matthews obe
chairman
24 january 2014
charles matthews
chairman
summary
• strong financial results 
• progressive dividend 
• positive outlook
see governance report on pages 29 to 46
profit before tax
25
profit before tax up 25 
to £78 million
earnings per share
127p
earnings per share up 26 
to 127 pence per share
progressive dividend
29p
dividend increased by 12 
to 29 pence per share
strong performance and
continued progress
06 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1343  page 9 overview of 2013
the group achieved record results in 2013 
with annual revenue growth of 10 proﬁt
before tax grew 25 and earnings per share
26 notwithstanding capacity expansion
investments and two small acquisitions strong
cash generation enabled the group to ﬁnish the
year free of net debt for the ﬁrst time order
books carried forward into 2014 are healthy
orders for aviation ﬁltration products grew 
14 in 2013 driven by recent new product
introductions nuclear and bioscience orders
were also strong sales to environmental
laboratories were up 13 after a slow start
revenues from metals filtration improved in 
the second half to ﬁnish up 2 for the year
several large contracts were announced in
energy markets during the year these will have
a signiﬁcant beneﬁcial impact on the group
results through to 2017 with the initial beneﬁts
showing in the 2013 results
capital investments were made in 2013 to
expand uk aviation and chinese manufacturing
capacity further such investments are planned
for 2014 in order to support longer term growth
plans for investment and future development
in 2013 porvair achieved two signiﬁcant
milestones large contracts were secured 
that will underpin manufacturing activity in
microﬁltration for at least the next two years 
and strong underlying trading enabled the
group to ﬁnish the year with net cash on the
balance sheet
together these will enable a period of
accelerated investment in 2014 we plan to
increase capital investment substantially 
• we intend to consolidate and expand our uk
facilities at new milton in order to free space
for aviation and industrial ﬁltration growth in
fareham aviation sales have grown strongly
recently and we need more capacity 
• following the acquisition of the trade and
assets of eisenmann metallurgical llc in june
2013 we will expand its manufacturing facility
in caribou maine during 2014 and invest in
production equipment to increase its capacity
• having built a new factory at xiaogan china
for metals filtration in 2013 we expect to
expand its production capability and capacity
in 2014 
• we will make further investments in the
production capabilities in the us
these and other projects will increase expected
capital investment in 2014 to around three 
times its level of recent years capacity increases
and equipment upgrades are necessary due 
to the impact that new product introductions
have had on the business we expect this
capacity pressure to continue with the 2014
product development pipeline looking promising
interesting work is going on in bioscience
ﬁltration metals ﬁltration manufacturing water
analysis nuclear ﬁltration and others
encouraging these projects is central to 
porvair’s business model
the 2013 results show the early beneﬁts of 
the large contract wins and these will become
even more apparent in 2014 the contracts in
question are principally those with posco the
uk government and reliance industries all of
which have been previously announced the
ﬁnancial impact of these contracts is expected
to cause the published results over the next
three to four years to ﬂuctuate more than has
generally been the case
• multiyear contracts are recognised under
longterm accounting rules which means that
revenues are expected to receive a oneoff
boost in 2014 causing them to be higher than
the underlying growth rate the group would
normally deliver revenues might then be
expected to return to the underlying levels 
in 2015
• proﬁts are recognised only after due
consideration of the potential risks outstanding
liabilities and warranties on each project proﬁt
recognition could therefore be spread over the
period between 2013 and 2017 
• net cash inﬂows are expected to arise
principally in 2013 and 2014 whilst we will
maintain suitable cash reserves against the
possible needs of the contracts this cash will
be used to reinvest in the business as
outlined above
ben stocks
group chief executive
strategic report
chief executive’s report
summary performance
• strong financial performance
– revenue up 10
– profit before tax up 25 
• 39 return on operating
capital
• year of investment in 2014
• large projects boost 2014
revenue
overview strategic 
report
governance financial
statements
other
information
07 porvair plc annual report  accounts 2013
well positioned for 
future growth
see more on pages 10 to 15
2009 2010
90
80
70
60
50
40
30
20
10
0
2011
552
636
681
2012 2013
765
843
£843m
revenue up 10 to 
£843 million
revenue growth £m
2009 2010
14
12
10
8
6
4
2
0
2011
60
81 81
2012 2013
92
123
£123m
cash generated from operations
up 34 to £123 million
cash generated from
operations £m
financial highlights 201 3
2013 2012
£m £m growth 
revenue 843 765 10
proﬁt before tax 78 63 25
cash generated from 
operations 123 92 34
net cashdebt 06 39 115
earnings per share 127p 101p 26
covs 136 92 tplayout 1  03032014  1343  page 10 08 porvair plc annual report  accounts 2013
aviation
strategic report
market overview
strong niche positions 
in the markets we serve
porvair focuses on markets which have long term
growth potential clear product regulation requirements
and require strong engineering or technical skills
at the heart of what we do is filtration and engineering
expertise which allows us to solve customer problems
across all the markets we serve
the group is a leading specialist in the design and
manufacture of filtration components and assemblies for the
aviation industry its components are specified on most of the
world’s passenger airlines in fuel systems hydraulic systems
and coolant systems
market trends and 
growth drivers
the group’s aviation business
supplies parts for new aircraft and
for maintenance spares activity in
this market is driven by
•aircraft build rates
•the frequency of maintenance
schedules
both are driven by the global
demand for air travel measured in
passenger miles flown long term
growth rates for passenger miles
flown are around 5 per annum
niche positions
the group provides a wide range
of aviation ﬁlters but has
particularly strong niche positions
in
•fuel tank inerting
•coolant systems for aircraft
control systems
•fuel line and hydraulic ﬁlters
competitive advantage
the group has a long track record
of design engineering skills using 
a wide range of ﬁlter media it has
a large installed base of bespoke
ﬁlters whose designs are owned
by the group
recent new products
the group’s larger new aviation
products include ﬁlters for
•airbus and boeing fuel 
tank inerting
•airbus a380 and boeing 787
coolant systems
•a range of airbus a350
applications
•a range of airbus neo
applications
the group provides filtration solutions for energy and industrial
process applications its filters are to be found in many of the
harshest industrial environments applications are diverse
including high temperature gas filtration and the containment 
of waste nuclear material
market trends and 
growth drivers
the group has a wide industrial
ﬁltration range with a particular
expertise in nuclear containment
and gasiﬁcation ﬁltration the us
doe estimates that gasiﬁcation
output is growing at 115 per
annum
niche positions
the group has niche expertise in
•hot gas and gasiﬁcation ﬁltration
•pulse jet ﬁltration systems
•nuclear containment ﬁltration
•polymer production ﬁltration
competitive advantage
the group has a long track record
of design engineering skills using 
a wide range of ﬁlter media it has
a large installed base of bespoke
ﬁlters whose designs are owned
by the group
recent new products
the group’s large projects
described throughout these 
results are included in this market
segment they include
•two large gasiﬁcation contracts
•an £11 million uk nuclear
remediation contract
read more on pages 14 and 15 read more on pages 14 and 15 
energy  industrial process
covs 136 92 tplayout 1  03032014  1344  page 11 overview strategic 
report
governance financial
statements
other
information
09 porvair plc annual report  accounts 2013
the group designs and manufactures a range of equipment 
for use in laboratories its seal analytical business is a global
leader in the manufacture of laboratory based equipment 
for testing for inorganic contaminents in water the group 
also produces a broad range of laboratory microplates for
storage and experimentation in the pharmaceutical and
biotechnology markets
the group’s metals filtration division specialises in the design 
and manufacture of filters for molten metal the group provides
patent protected filters for the aluminium cast house industry 
the filtration of gray and ductile iron mainly for the us auto and 
light truck market and the filtration of super alloys used in the
manufacture of turbine blades
market trends and 
growth drivers
the market for clean water testing
is growing throughout the world 
as more of the world’s population
seeks access to clean water and
water regulations tighten it is
estimated that the market for water
analysis consumables is growing
between 5 and 6 per annum
niche positions
the group has a particular
expertise in the development 
and manufacture of laboratory
based equipment for testing the
inorganic contaminants in water  
it manufactures equipment
develops testing methodologies
and supplies equipment
consumables
it also develops functionalised
porous plastics used for a variety 
of ﬁltration applications in the
bioscience market
competitive advantage
the group’s water analysis
business beneﬁts from design
protections on its equipment its
broad range of approved methods
and a large and loyal customer base
its porous plastics are protected 
by intellectual property and 
related patents
recent new products
the group continues to broaden its
range of water analysis equipment
with upgrades to its quaatro and
aq2 ranges more methods
introduced to its new aa1 machine
and a range of block digesters from
its recent acquisitions
its functionalised porous plastics
now include a range licensed 
to thermo fisher and a novel
patented epigenetics product
chromatrap™
market trends and 
growth drivers
the group’s molten metal
business grows as the demand
for clean metal increases alcoa
estimates that annual production
of aluminium is growing at about
65 per annum us car and light
truck production a proxy for the
rate of use of iron foundry ﬁlters
has been growing at 8 per
annum and the growth in the
aviation industry is driving growth
in the use of high grade alloys
niche positions
the group has a high market
share of
•the global market for cast house
aluminium ﬁlters
•the nafta market for gray and
ductile iron ﬁlters
•the global market for high grade
and exotic alloy ﬁlters
competitive advantage
the group’s competitive
advantage comes from its
metallurgical and ceramics
expertise which enable the group
to develop differentiated and
patent protected ﬁlters
recent new products
the division’s principal products
are all relatively new and patented
the principal products are
•selee csx™ for aluminium
ﬁltration
•selee ic™ for gray and ductile
iron ﬁltration
•selee sa™ for high grade alloys
environmental laboratory supplies molten metals
read more on pages 14 and 15 read more on pages 12 and 13
covs 136 92 tplayout 1  03032014  1344  page 12 strategic report
strategy and business model
our strategy
porvair’s strategy has remained consistent for several years 
it is to generate shareholder value through the development of
specialist filtration and environmental technology businesses both
organically and by acquisition such businesses have certain key
characteristics in common 
• specialist design or engineering skills are required
• product use and replacement is mandated by regulation quality
accreditation or a maintenance cycle and
• products will be designed into a specification and will typically 
have long life cycles
since 2007 this strategy has delivered revenue growth of 85 
11 cagr and cash from operations of £48 million in 2013 
the group’s after tax operating profit return on operating capital 
was 39 2012 30
our business model
porvair’s business model is as follows
focus on endmarkets which show long term growth potential
and where product use is mandatory
make new product development a core business activity
establish geographic presence where endmarkets require
maintain a conservative balance sheet reinvest in both
organic and acquired growth and pay a progressive dividend
this business model determines the
group’s daytoday activities
how our strategy and business
model work together
our strengths
• we focus on four endmarkets aviation energy and
industrial environmental laboratories and molten
metals all have clear structural growth drivers 
• our products are specialist in nature they typically
protect more costly or complex downstream systems
as a result they are replaced regularly over 80 
of our annual revenues are from repeat orders
• we encourage new product development in order 
to generate growth rates in excess of the underlying
market around 35 of our annual revenues are
now derived from recent product introductions 
we try to build good intellectual property around our
product developments about 30 of our revenues
are derived from patent protected products
• our geographic presence follows the markets we
serve 46 of revenues are from the americas
where aviation and metals ﬁltration are strong 
18 of revenues are in asia and australasia where
sales into water analysis markets are growing
• porvair is a cash generative business we aim to
maintain a conservative balance sheet meeting
dividend and investment needs within our existing
debt facilities and generating free cash ﬂow to pay
down debt in the last two years we have expanded
manufacturing capacity in the uk and china and
made ﬁve small acquisitions 
operating structure
• the group has two divisions the microﬁltration
division serves the aviation environmental laboratory
and energyindustrial markets the metals filtration
division serves global aluminium nafta iron foundry
and super alloy markets 
• the group manufactures in the uk us germany
and china
the experience 
and expertise  
of our staff
t echnological
innovation
product 
quality
customer 
service 
excellence
manufacturing
capabilities
10 porvair plc annual report  accounts 2013
1
2
3
4
covs 136 92 tplayout 1  03032014  1344  page 13 positioned for growth
delivering long term 
sustainable growth
capital investment to
support growth
investing for the future
since 2007 porvair has delivered 11 cagr
revenue growth during that period
• the group’s aviation revenue has grown
strongly
• new products have driven sales and 
margin growth 
• our presence in asia has increased to 
18 of revenue and
• our net debt has been eliminated
in 2014 capacity increases are planned 
across the group to allow room for further
growth with the 2014 new product pipeline
looking promising we expect capital
expenditure in 2014 to be around three 
times its level of recent years
our investment priorities for 2014 are
• to consolidate and expand our uk facilities 
at new milton in order to free space for
aviation and industrial ﬁltration growth 
• to expand the manufacturing facilities 
and production capacity in caribou me  
• to expand the production capability of 
our new factory at xiaogan china for 
metals filtration 
• to make further investments in metals
filtration and seal analytical production
capabilities in the us
read more on pages 7 and 12 to 18 
new product development
drives organic growth
new product development
new product development is a core 
activity for the group we undertake it 
to generate growth rates in excess of the
underlying market we try to build good
intellectual property positions around our
product developments through patents 
and knowhow
in metals filtration we have three main
patented product ranges
• selee csx™ for aluminium ﬁltration where
we have a high global market share 
• selee ic™ for gray and ductile iron ﬁltration
and 
• selee sa™ for the ﬁltration of nickel
cobalt alloys 
in microﬁltration interesting work is going on 
in bioscience ﬁltration water analysis nuclear
ﬁltration and aviation product development
our priorities for 2014 include
• development and trials of a new aluminium
ﬁlter for high grade lithium alloys
• further customer trials of a new design 
of metal ﬁltration ﬁlters
• further development of a patented dna
ﬁltration product and other bioscience
applications
• exploitation of the design rights of the range
of water analysers
• development of more robust longer lasting
industrial ﬁltration media
adding value through
acquisitions
enhancing our capabilities
our business model encourages investment 
in both organic and acquired growth over the
last two years the group has invested £86
million in ﬁve small acquisitions
• block digester range from aim lab
automation technologies
• trade and assets of pell industries
• trade and assets of pulse instrumentation
• trade and assets of eisenmann 
metallurgical and 
• trade and assets of thomas cain 
these acquisitions contribute to the steady
growth of the group and extend our product
ranges and geographic presence in our
markets
our priorities for 2014 include
• expanding the manufacturing facilities 
and production capacity of eisenmann
metallurgical
• completing the integration of the 
2013 acquisitions
• identifying further potential opportunities
read more on pages 7 and 12 to 18 read more on pages 7 and 12 to 18 
£123m
cash generated from operations
amounted to £123 million
cash generated from operations
30
over 30 of our revenue comes from
patented products
patented products
£86m
invested £86 million in ﬁve small
acquisitions in the last two years
value added acquisitions
overview strategic 
report
governance financial
statements
other
information
11 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1344  page 14 strategic report
divisional performance
12 porvair plc annual report  accounts 2013
metals filtration division
2009
2010
3
2
1
0
1
2011
12
05
15
2012 2013
24 24
£24m
operating profit growth
performance
• stronger second half leading to record
revenues of £285 million
• proﬁts of £24 million in line with the prior year
strategic progress
• better margins enabled the business to 
cope with a slower start to 2013
• market share gains from superior product
performance
forward focus
• promising development pipeline
• new high grade lithium aluminium alloy 
ﬁlter in trials
• entirely new design of ﬁlter in development 
• further capacity investments in 
xiaogan china
• positive start to 2014
lithium aluminium filter
customer need
lithium aluminium is a stronger
lighter alloy than aluminium with 
a growing use in the aerospace
industry  in common with
aluminium it needs to be ﬁltered
to produce high purity metal
however in its molten state it
corrodes traditional ﬁlters
porvair’s response
porvair has developed and is
testing a new ﬁlter using a
different ceramic formulation to
signiﬁcantly reduce corrosion 
and thereby produce higher 
purity metal
operating profit
case study
covs 136 92 tplayout 1  03032014  1344  page 15 divisional review – metals filtration
performance in 2013
after a slow start to 2013 the metals filtration
division had a stronger second half finishing
the year with record revenues of £285 million 
the board was pleased to note that this
division was better able to cope with a modest
sales downturn in early 2013 than had
previously been the case this is mainly due 
to higher operating margins achieved in recent
years with patented products accounting for
the majority of sales in this division despite
the slower start to the year operating profits
finished in line with 2012’s record result 
of £24 million
conditions in this division’s endmarkets 
have been mixed across the year with global
aluminium pricing relatively low but nafta
auto production staying at satisfactory levels
in this environment we have been able to build
market share by demonstrating superior
product performance we have three main
product ranges all patented 
• selee csx™ for aluminium filtration where
we have a high global market share this
product has a unique environmental footprint
in being free of phosphates
• selee ic™ for gray and ductile iron filtration
this range is sold principally in the us and
offers excellent filtration efficiency
• selee sa™ for the filtration of nickelcobalt
alloys this niche application requires
exceptional filtration performance and uses 
a highly proprietary manufacturing technique
the product development pipeline in this
division is promising in recent months we
have successfully trialed a new aluminium 
filter for high grade lithium alloys that are
increasingly used in aerospace applications
as previously noted we have been developing
an entirely new design of filter over the last 
18 months and this work continues to go
well several successful customer trials 
have been held and we are making modest
revenues from this project in 2014 we will
start to see whether this remains a niche
application or whether it can develop into 
a more substantial programme
a new plant was built at xiaogan in china in
the year the new facility is substantially larger
than its predecessor and was built on time
and under budget production started in the
final quarter we plan to develop this facility 
to meet the needs of the domestic chinese
market further investment in production
equipment will be necessary with installation
likely towards the end of 2014
annual sales 
£285m
metals filtration annual sales 
grew to £285 million
revenue growth
2
metals filtration revenue up 2
operating profit
£24m
metals filtration operating profit
£24 million 
financial highlights 201 3
2013 2012
£m £m growth 
revenue 285 280 2
operating proﬁt 24 24 –
overview strategic 
report
governance financial
statements
other
information
13 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1344  page 16 strategic report
divisional performance continued
14 porvair plc annual report  accounts 2013
microfiltration division
2009 2010
10
8
6
4
2
0
2011
51
55
56
2012 2013
67
86
£86m
operating profit growth
operating profit
case study
reliance contract
customer need
the reliance contract is a 
multiyear project to install
gasiﬁcation ﬁltration systems for 
a gasiﬁcation plant being built 
by reliance industries at the
jamnagar oil reﬁnery in india
porvair’s response
the project was won in a
competitive bid the group being
selected on the basis of a strong
technical presentation its design
stage is complete manufacturing
has begun and will continue
throughout 2014 with installation
commencing thereafter
performance
• revenue increased 15 to £558 million
• seal analytical revenue up 13
• operating proﬁt up 29 to £86 million
strategic progress
• several large contracts progressing well
• core business progress in aviation nuclear
and bioscience
• two us based acquisitions completed
forward focus
• healthy order books going into 2014
• one off revenue boost from larger contracts
expected in 2014
• larger contract proﬁts spread over next 
three to four years
• signiﬁcant investment in facilities and
capacity in uk and us planned
covs 136 92 tplayout 1  03032014  1344  page 17 overview strategic 
report
governance financial
statements
other
information
15 porvair plc annual report  accounts 2013
financial highlights 201 3
2013 2012
£m £m growth 
revenue 558 485 15
operating proﬁt 86 67 29
divisional review – microfiltration
performance in 2013
the microfiltration division had a good year with
revenues increasing 15to a record £558 million
order books going into 2014 are healthy
several large contracts are now underway in
this division all are proceeding satisfactorily 
a second delivery under the us10 million
posco contract was made towards the end
of 2013 posco expect to start production
trials of its plant that turns coal to substitute
natural gas at gwangyang south korea later 
in 2014 a much larger contract for a similar
project was signed in february 2013 with
reliance industries for their plant at jamnagar
india the scope of this work was extended 
in april and again in august finally an 
£113 million contract with the uk government
was announced in january 2013 for deliveries
starting in 2014 the likely beneficial financial
impact of these projects is discussed on page 7
orders in aviation and nuclear filtration have
grown again in 2013 with a 14 increase in
aviation orders meaning we are starting to hit
capacity constraints as noted on page 7 we
will expand our facilities both in the uk and us 
to provide room for further growth
the us based operation grew 24 in 2013 a
good result excluding the maiden contribution
from eisenmann metallurgical “cem” acquired
in june 2013 cem is a good bolton acquisition
for the group bringing product and market
expertise with a committed and skillful workforce
in caribou maine as noted on page 7 we will
invest in this facility in 2014 to allow room for
growth and have an expanded management
and commercial team in place to drive further
growth trading at cem since acquisition has
been satisfactory with integration activities
focused on it and financial systems this work
is complete with the caribou facility now
operating well as a satellite plant
we have been working for several years 
on some interesting intellectual property in
bioscience filtration a patented dna filtration
product is under development in collaboration
with the university of swansea and with some
financial support from the welsh government
in an unrelated project an agreement was
struck with thermo fisher scientific “thermo”
under which porvair will licence its technology
to thermo who will market fritless solid phase
extraction columns under the sola brand
porvair will receive licence and royalty income
and manufacture the product for thermo this
sort of opportunity where porvair technology 
is licenced to others is of interest to the board
and results will be monitored closely
seal analytical revenues grew 13 helped 
by small acquisitions in 2012 and 2013 seal is
the market leading supplier of equipment and
consumables for the detection of inorganic
contamination in water a well defined niche
market that will grow as water quality standards
improve across the worldalthough its us
markets remained quiet for most of the year
demand from china was robust and parts of
europe showed the first signs of improvement
in several yearsdesign rights to a range of water
analysers were acquired early in the year and
these have transferred to seal’s us operation
cost savings have been found and
manufacturing is now fully integrated in
september the group purchased the trade 
and assets of thomas cain inc “cain” a
manufacturer of complementary instruments
and consumables initial trading at cain has
been satisfactory and the outlook for 2014 
is good
ben stocks group chief executive
24 january 2014
annual sales 
£558m
microfiltration annual sales 
grew to £558 million
revenue growth 
15
microfiltration revenue up15
operating profit 
£86m
microfiltration operating profit
£86 million
covs 136 92 tplayout 1  03032014  1344  page 18 group operating performance
the operating profit margin improved to 103
2012 94 this improvement arises from 
the benefit of higher revenue driving operational
gearing and a steady improvement in the quality
of business throughout the group following
several years of steadily improving margins in
metals filtration operating margins were
maintained in the year and the growth in
microfiltration was accompanied by a 17
improvement in operating margins in the year
the operating performance of the microfiltration
and metals filtration divisions are described in
detail in the chief executive’s report and below 
the operating loss associated with the other
unallocated segment was £24 million 2012
£19 million which mainly comprises group
corporate costs these include new business
development costs and general financial costs
the operating profit includes amortisation
charges on intangible assets arising on
acquisition of £02 million 2012 £01 million
acquisition expenses written off of £01 million
2012 £01 million and share based payment
charges of £05 million 2012 £04 million
impact of exchange rate movements 
on performance
the international nature of the group’s business
means that relative movements in exchange
rates can have a significant impact on reported
performance the average rate used for
translating the results of us operations into
sterling was us157£ 2012 us158£ 
and the group’s euro denominated operations
were translated at €118£ 2012 €122£ 
the slightly stronger dollar and stronger euro
rates accounted for 1 of the revenue growth
and 1 of the operating profit growth such that
currency differences on translation had only a
marginal impact compared with the prior year
the group sold forward the majority of its uk
business’ 2013 us dollar revenue during the
financial year and achieved rates between
151£ and 16£ similar to the rates 
achieved in 2012
at 30 november 2013 the group had 
us19 million of outstanding forward foreign
exchange contracts taken out to hedge the
future revenue on the group’s large contracts
the group has applied hedge accounting to
these transactions and a gain of £09 million 
is shown in the consolidated statement of
comprehensive income
finance costs
net interest payable decreased to £08 million
2012 £09 million included within interest
payable are finance costs in relation to the
defined benefit pension scheme which were
£04 million 2012 £04 million in the year
other net interest payable reduced as a result 
of lower borrowings and a lower margin on the
new facilities in place from january 2013
the group has a policy of maintaining between
40 and 60 of its borrowings on fixed interest
terms it achieved this by taking out interest rate
swaps to fix the interest rates on certain of its
borrowings these provided some protection
for the group in the event of interest rate rises
as a result of the significant decline in the
group’s borrowings in the year the group had
approximately 75 of its gross borrowings held
at a fixed rate at 30 november 2013 however
the fixed rate contracts expire shortly after the
year end for the time being while the group’s
gross borrowings are low the board has
concluded that further interest rate swaps need
not be taken out and the group’s borrowings
are at a floating rate from 13 december 2013
the contracts in place during the year are
summarised below
fixed rate principal amount principal terms
188 5 million effective from 
12 december 2010
to 12 december 2013
229 25 million effective from 
12 december 2011
to 12 december 2013
interest cover was 11 times 2012 8 times
excluding the impact of the pension finance
charge the interest cover is 21 times 2012 
14 times
tax
the group tax charge was £24 million 2012
£20 million this is an effective rate of 30
2012 32 higher than the uk standard
corporate tax rate of 233 2012 247
mainly as a result of higher tax rates on profits
made in germany and the us the tax charge 
strategic report
finance director’s review
chris tyler
group finance director
summary performance
• operating profit margin
improved to103
• net debt eliminated
• £51 million invested in
two acquisitions
financial highlights 201 3
2013 2012
£m £m growth 
revenue 843 765 10
operating proﬁt 86 72 20
proﬁt before tax 78 63 25
16 porvair plc annual report  accounts 2013
strong financial performance
profit before tax
25
proﬁt before tax increased by
25 to £78 million
operating margin
10
group operating margin
improved to10
roce
13
return on capital employed
increased to13
covs 136 92 tplayout 1  03032014  1344  page 19 overview strategic 
report
governance financial
statements
other
information
17 porvair plc annual report  accounts 2013
comprises current tax of £23 million 2012 
£18 million and a deferred tax charge of 
£01 million 2012 £02 million
the deferred tax asset of £24 million 2012
£20 million relates to the deficit on the pension
fund and share based payments totaling £37
million 2012 £31 million offset by a net £13
million 2012 £11 million deferred tax liability 
in relation to accelerated capital allowances
capitalised development costs and other timing
differences the group no longer has any
unrecognised deferred tax assets arising from
previous losses
total equity
total equity at 30 november 2013 was 
£477 million 2012 £452 million an increase
of 6 over the prior year increases in total
equity arose from profit after tax of £60 million
2012 £49 million after adding back the
charge for employee share option schemes
£07 million 2012 £nil in relation to share
issues on option exercises and £10 million
2012 £01 million arising from hedge
accounting instruments dividends paid of £12
million 2012 £10 million an actuarial loss of
£31 million net of tax 2012 £06 million and
exchange losses on translation of £09 million
2012 loss of £03 million reduced total equity
return on capital employed
the increase in the profits of the group
compared with a stable asset base led to an
increase in the return on capital employed to
13 2012 10 excluding the impact of
goodwill the return on operating capital
employed increased to 39 2012 30
cash flow
the table below summarises the key elements
of the cash flow for the year
2013 2012
£m £m
operating cash flow before
working capital 112 95
working capital movement 11 03
cash generated from 
operating activities 123 92
interest 04 05
tax 21 12
capital expenditure net of disposals 15 20
83 55
acquisitions 33 33
dividends 12 10
share issue proceeds 07 –
net debt at 1 december 39 51
net cashdebt at 30 november 06 39
net working capital was tightly controlled 
and reduced by £11 million although revenue
rose by 10 in the year inventories increased
as a result of the increased revenue trade and
other receivables also increased a little as a
result of higher revenue but the majority of the
increase relates to advance payments made 
to suppliers in relation to the group’s large
contracts trade and other payables increased
significantly in part because of the receipt of
cash ahead of the recognition of revenue on 
the group’s large projects
net interest paid represents the bank interest
charged in the year it reduced as bank
borrowings fell in the year
tax payments in the us have increased
following the final utilisation in 2012 of past 
tax losses in the metals filtration division tax
payments are now more closely in line with 
the group’s tax charge
capital expenditure
capital expenditure was £20 million 2012 
£20 million offset by £05 million 2012 £nil
received on the disposal of a uk property the
principal investments in 2013 were a new plant
in xiaogan china for metals filtration and
additional plant in the microfiltration division 
to increase capacity principally to deliver 
growth in aerospace business
looking forward the board is planning
significant capital projects in 2014 to provide
new and upgraded plants in the uk us and
further increases to production capacity
throughout the group capital expenditure 
is likely to rise to around three times the 
normal level
acquisitions
the group invested £51 million in two us
based acquisitions in the year on 4 june 2013
the group purchased the trade and assets of
eisenmann metallurgical llc a manufacturer 
of specialist filters and on 20 september 2013
the group purchased the trade and assets 
of thomas cain inc a manufacturer of
environmental laboratory equipment and
consumables these acquisitions gave rise to
goodwill of £37 million £33 million was paid 
in cash in the year up to a further £19 million
deferred and contingent consideration is due
including £01 million in relation to acquisitions
made in 2012
2010
2011
0
2
4
6
8
10
12
14
2012
97
2009
139
51
39
2013
06
£06m
net debt reduced by 115 
to a £06 million net cash
position
2009 2010
14
12
10
8
6
4
2
0
2011
60
81 81
2012 2013
92
123
£123m
cash generated from
operations
2009 2010
14
12
10
8
6
4
2
0
2011
27
52
73
2012 2013
101
127
127p
earnings per share
cash generation £m
net debtcash £m
eps growth trend pence
covs 136 92 tplayout 1  03032014  1345  page 20 the acquisitions contributed £15 million of
revenue and £01 million of operating profit 
in the year after charging £01 million of
acquisition costs 
it is estimated that had the acquisitions been
owned for a full year they would have contributed
£38 million of revenue and £07 million of
operating profit in the year
pension schemes
the group continues to support its defined
benefit pension scheme in the uk which is
closed to new members and to provide access
to defined contribution schemes for its us
employees and other uk employees
the group’s total pension cost was £14 million
2012 £12 million £10 million 2012 £08
million was recorded as an operating cost and
£04 million 2012 £04 million was recorded 
as a finance charge the group continues to
account for its pension schemes under ias 19
and will adopt ias 19 revised in the year ending
30 november 2014 had the group adopted 
ias 19 revised it is estimated that the group’s
pension charge in the year would have been 
£02 million higher
the group recorded a retirement benefit
obligation of £119 million 2012 £85 million
the increase in the deficit principally related to 
an actuarial loss in the year of £36 million 2012
£12 million which in turn arose as a result of a
change in the mortality assumptions the other
assumptions adopted were in line with the
previous year
the scheme had 53 2012 54 active members
289 2012 295 deferred members and 265
2012 265 pensioners at 30 november 2013
the life expectancy of members of the scheme 
at age 65 is assumed to be 215 years 2012
197 years for men and 237 years 2012 223
years for women
a full triennial actuarial valuation of the assets 
and liabilities of the defined benefit scheme was
completed in 2013 based on data at 31 march
2012 as a result of this review the group and
the trustees agreed to alter the employer’s
contributions from 82 of salary to 133 
of salary additionally the group committed to
make a £194000 annual contribution towards
the running costs of the scheme from march
2014 which will increase by 325 per annum
thereafter the group also committed to make
additional annual contributions to cover the 
past service deficit of £456000 per annum
commencing in december 2013 increasing 
by 5 per annum thereafter the funding shortfall
is expected to be eliminated by december 2027
the next full actuarial valuation of the scheme will
be based on the pension scheme’s position at 
31 march 2015 and is expected to be completed
before june 2016
borrowings and bank finance
at the year end the group had net cash
balances of £06 million 2012 net debt of £39
million comprising cash balances of £68 million
2012 £73 million offset by gross borrowings 
of £62 million 2012 £112 million borrowings
of £46 million us75 million 2012 £64 million
us103 million are held in us dollars
the group signed new five year borrowing
facilities on 25 january 2013 comprising a five
year us20 million revolving credit facility a 
£25 million term loan reduced to £175 million at
30 november 2013 and a £25 million overdraft
facility these facilities have margins ranging
between 195 and 225 a considerable
reduction on the margins of the previous facilities
which had margins of 27 the new facilities
provide adequate operating headroom until
january 2018
at 30 november 2013 the group had £76 million
of unused loan facilities 2012 £10 million of
unused facilities an unutilised overdraft facility 
of £25 million 2012 £25 million and cash
balances of £68 million 2012 £73 million 
the £14 million cash balance held as restricted
cash at 30 november 2012 was released in
march 2013
finance and treasury policy
the treasury function at porvair is managed
centrally under board supervision it is not a 
profit centre and does not undertake speculative
transactions it seeks to limit the group’s trading
exposure to currency movements the group
does not hedge against the impact of exchange
rate movements on the translation of profits and
losses of overseas operations
at the year end the group had us75 million
2012 us103 million of us dollar borrowings
exposure which partially hedged underlying us
net assets on the balance sheet of us399
million 2012 us358 million
the group finances its operations through share
capital retained profits and bank debt it has
adequate facilities to finance its current operations
and capital plans for the foreseeable future
chris tyler
group finance director
24 january 2014
strategic report
finance director’s review continued
18 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1345  page 21 strategic report
key performance indicators
revenue growth description
revenue growth captures our performance in the main 
tenets of our business model meeting customer
requirements developing new products expanding
geographically and making acquisitions
revenue growth in constant currency is a good measure 
of the underlying growth within each division
10
2011
2012
2013
7
12
10
revenue growth at constant currency
9
2011
2012
2013
9
12
9
revenue growth – metals filtration
2
2011
2012
2013
15
8
2
revenue growth – microﬁltration
15
2011
2012
2013
4
15
15
operating margin – group description
operating margins demonstrate the group’s propensity to
turn revenue into profits 
microfiltration has improved its operating margin by 1 as 
a result of the revenue growth being higher than the increase
in the underlying operating cost base metals filtration’s
operating margin has reduced by 1 as a result of increasing
its technical costs to support product development
10
2011
2012
2013
8
9
10
operating margin – metals filtration
8
2011
2012
2013
6
9
8
operating margin – microﬁltration
15
2011
2012
2013
13
14
15
howwe measureperformance
overview strategic 
report
governance financial
statements
other
information
19 porvair plc annual report  accounts 2013
kpis are used to measure our progress on strategic
priorities the board considers that the group has
performed ahead of the expectations set at the start 
of the financial year as measured by these key
performance indicators
covs 136 92 tplayout 1  03032014  1345  page 22 proﬁt before tax growth description 
a measure of the profits of the business after all costs and
finance charges have been taken into account but before
corporation tax
25
2011
2012
2013
44
40
25
earnings per share growth description 
earnings per share growth gives a measure of our ability 
to deliver earnings growth for our shareholders 26
2011
2012
2013
40
38
26
interest cover description 
interest cover is a measure of the number of times our
operating profits could pay our finance costs a figure higher
than 3 times indicates that the group can comfortably
service its debt
11
times
2011
2012
2013
7
8
11
post tax return on capital employed description 
13
2011
2012
2013
7
10
13
post tax return on operating capital employed description 
the post tax return on operating capital employed gives 
a measure of the group’s ability to make financial returns 
from the fixed assets and working capital employed in its
operations it ignores the goodwill arising on acquisitions
it gives a simple measure of the group’s ability to make
returns from its investments in plant and equipment and
working capital
39
2011
2012
2013
21
30
39
overview strategic 
report
governance financial
statements
other
information
20 porvair plc annual report  accounts 2013
strategic report
key performance indicators continued
post tax return on capital employed gives a measure of
financial return from all of the invested capital in the business 
a return higher than the group’s weighted average cost 
of capital is satisfactory 
covs 136 92 tplayout 1  03032014  1345  page 23 effective risk management underpins the delivery of our 
key strategic and operational objectives
our approach to risk management
we aim to identify key risks at an early stage and develop actions
to eliminate or mitigate their impact
risk management processes are embedded throughout the
group and form an integral part of daytoday business activity
risk governance
the board has overall responsibility for ensuring that the group
maintains an effective risk management system 
principal risks and uncertainties
there are a number of risks and uncertainties described 
on pages 21 to 24 which could have a material impact on 
the group’s long term performance and prospects
strategic report
principal risks and uncertainties
overview strategic 
report
governance financial
statements
other
information
21 porvair plc annual report  accounts 2013
managing risk in delivering
our strategy
read more on governance pages 33 to 35 
risk description and impact
existing market risk
the group serves the needs of a range of specialist filtration
markets such that it is not dependent upon any one market
however its activities are spread across four key markets as
follows 
• aviation filtration where quality and accreditation of products 
are critical
• energy and industrial process filtration where projects tend 
to be large and demand would be affected by a sustained
economic downturn
• environmental laboratory supplies where revenue can be affected
by access to capital in customers’ markets municipalutilities 
and industrial labs and
• aluminium filtration where demand for aluminium can fluctuate
each of the above markets contribute more than 10 of the
group’s revenue and the group would be exposed to a significant
decline in any of these markets
mitigation change
no single market represents more than 30 of revenue many of 
the group’s products are consumable and are essential to the safe
operation of their respective systems and processes so whilst
volumes are impacted by changes in economic circumstances
significant fluctuations for other reasons are rare 
the aviation market has traditionally provided very steady business
as product cycles are long and the group offers a broad range of
products split evenly between aftermarket and new build the
outlook for the aviation market is for steady growth and the group
has a good pipeline of new long term supply contracts there is
unlikely to be such a rapid decline in aerospace demand that the
group could not manage the consequences over time  
the energy and industrial process products serve a range of
customers who use filters as an integral part of processes in their
plants sales are both for new build and after market spares  
environmental laboratory supplies are chiefly sold to laboratories
engaged in meeting the regulatory requirements for clean water  
it is expected that the regulated nature of this market will mitigate
cyclical changes this market is expected to grow as water
regulations tighten throughout the world and demand for clean 
water in the developing world increases the group is steadily
increasing its consumable revenue into this market and reducing 
its reliance on original equipment sales 
the group’s revenue is affected by the levels of aluminium
production however the group now has a stronger market 
position having successfully converted its customers to a new filter
formulation the production of aluminium is gradually moving to
larger smelters in regions of low cost energy the group is
developing its sales presence accordingly 
key and links to strategy
1
2
3
4
focus on regulated markets with long term growth prospects
concerted investment in new product development
geographic expansion
maintain conservative balance sheet
no change to risk risk exposure reduced risk exposure increased
1
covs 136 92 tplayout 1  03032014  1345  page 24 strategic report
principal risks and uncertainties continued
22 porvair plc annual report  accounts 2013
risk description and impact
new products and markets risk
the group invests significant amounts into the development of 
new products often driven either by environmental imperatives or
legislation in the early stage of development there is a risk that 
these products will either not be adopted or that the legislation 
or regulation will not develop as anticipated
mitigation change
the group’s new product development is focused on solving 
specific challenges identified by the group’s customers this focus
on specific developments improves the adoption rate of the group’s
designs the group has brought a number of these products 
to market and is now less exposed to the risks associated with new
products the group maintains a close review of each of its major
developments and is not significantly exposed if the market for any
one product does not develop
risk description and impact
large contracts risk
the group currently has a number of large contracts for the
installation of filtration systems the group’s future results will be
affected by the outcome of these contracts and the potential future
revenue from the installations significant delays or engineering
challenges with these contracts could impact the group’s expected
performance 
mitigation change
these contracts have direct senior management involvement on 
a day to day basis the group makes every effort to ensure that 
its commitments are met on time and in full detailed engineering
and financial plans risk assessments and forecasts are maintained
for each of these projects the financial impact of reasonably
foreseeable risks are included in these plans reports are
produced every month which detail project progress and 
changes to planned schedules and assessment of risk
risk description and impact
raw materials resources and facilities risk
the group uses raw materials in its production processes 
prices for these raw materials can be volatile and are affected by 
the cyclical movement in commodity prices such as oil alumina 
gas and steel the group’s ability to pass on these price fluctuations
to its customers is to some extent dependent on the contracts it 
has entered into and the prevailing market conditions there may be
times when the group’s results are adversely affected by an inability
to recover increases in raw material prices 
the group operates a number of production facilities the largest
facility generating approximately one third of the group’s revenue 
a disaster such as a fire or flood at any of the group’s facilities 
could have a material impact on the group’s performance  
mitigation change
where practical the group seeks to fix its raw materials prices in 
long term contracts with suppliers and in certain cases uses forward
contracts to manage its exposure to fluctuating prices
the group maintains insurance of its equipment and facilities and
carries business interruption insurance to cover loss of profits in
addition the group has iso 9001 and other industry specific quality
control systems which reduce the risk that a disaster will occur
risk description and impact
competitive risk
porvair operates in competitive global markets the group’s
achievement of its objectives is reliant on its ability to respond 
to many competitive factors including but not limited to pricing
technological innovations product quality customer service
manufacturing capabilities and the employment of qualified personnel
if the group does not continue to compete in its markets effectively
by developing innovative solutions for its customers and delivering
high quality customer service it could lose its customers and its
results could be adversely affected
mitigation change
the group recognises that certain of its competitors are larger and
have greater financial resources this may enable them to deliver
products on more attractive terms than the group or to invest more
resources including research and development
through the development of a strategy that focuses on micro
niches within the group’s chosen markets the group seeks 
to identify specific opportunities where it has a commercial
reputational or technological advantage that enables it to 
compete successfully
1
1
2
covs 136 92 tplayout 1  03032014  1345  page 25 key and links to strategy
1
2
3
4
focus on regulated markets with long term growth prospects
concerted investment in new product development
geographic expansion
maintain conservative balance sheet
no change to risk risk exposure reduced risk exposure increased
risk description and impact
technological risk
porvair has a broad portfolio of products delivered to a diverse range
of markets the group’s business could be affected if it does not
continue to win new mandates for filtration solutions with designs
that provide technical or cost advantages over its competitors
mitigation change
the design and testing cycle of many of the group’s products takes
several years before a product is accepted by the customer once
the product is accepted and production commences products
often have a very long lifecycle the group therefore has good
visibility of its pipeline of opportunities for revenue growth however
the ultimate commercial success of a project can often only be
judged when the development cycle is close to completion
risk description and impact
financing risk
the group maintains a level of borrowing to finance its operations
damage to or loss of its banking relationships could have a material
impact on the profitability of the group 
mitigation change
to mitigate this risk the group has sufficient longterm facilities in
place for its expected requirements and has progressively reduced
its gearing it maintains a close relationship with its bankers and
carefully monitors the restrictions on its borrowings  
risk description and impact
pensions risk
the group operates a defined benefit pension scheme which 
is closed to new members but remains open for future accrual 
for the existing active members the group retains the ultimate
responsibility for ensuring that the trust has sufficient funds to ensure
that all current and future pensions can be paid in full a significant
shortfall in the value of the assets of the scheme compared with its
liabilities could require the company to make additional payments 
to the scheme
mitigation change
the pension scheme is financed through a separate trust fund 
and administered by a board of trustees with an independent
chairman the group maintains a close oversight of the pension
scheme through appointment of its own trustees to ensure that 
the scheme is properly administered and that sound investment
advice is obtained the group has a deficit recovery plan in place
that is affordable and expected to reduce the current deficit 
the deficit contribution is reviewed every three years as part of 
the triennial valuation 
overview strategic 
report
governance financial
statements
other
information
23 porvair plc annual report  accounts 2013
risk description and impact
acquisitions risk
the group is actively involved in searching for complementary
acquisitions a poorly executed acquisition could weaken the group
mitigation change
the group engages in thorough due diligence on its target
companies and adopts a cautious approach in its selection and
completion of acquisitions
risk description and impact
product liability risk
the group manufactures products that are potentially vital to the safe
operation of its customers’ products or processes a failure of the
group’s products could expose the group to loss as a result of claims
made by the group’s customers or users of their products  
mitigation change
the group seeks to minimise liabilities through limitations of liability 
in its contracts and carries insurance cover in the event that claims
are made
2
3
4
4
covs 136 92 tplayout 1  03032014  1345  page 26 24 porvair plc annual report  accounts 2013
risk description and impact
financial risk management
the group’s operations expose it to a variety of financial risks that
include the effects of
• price risk 
• foreign exchange risk 
• credit risk 
• liquidity risk and
• interest rate cash flow risk
mitigation change
the group has in place financial risk management procedures 
that seek to limit the adverse effects on the financial performance 
of financial risks the principal procedures are described below
price risk
the group is exposed to commodity price risk as a result of its
operations the group buys certain raw materials and energy 
on long term contracts to minimise its exposure to fluctuation in
commodity prices in all cases these contracts result in the ultimate
delivery and use by the group of the commodity the group has 
no exposure to equity securities price risk as it holds no listed 
or other equity investments
foreign exchange risk
the group seeks to manage its exposure to the impact of 
exchange rate movements on its net investments by maintaining
some borrowings in us dollars previously it sought to maintain
borrowings in us dollars equivalent to around 60 of the carrying
value of its us dollar net tangible assets in its us operations
however as the group’s overall borrowings have reduced so 
the us dollar borrowings have reduced to around 15 of its 
us dollar net assets
the uk operations of the business generate significant revenues 
in us dollars and the group seeks to minimise the impact of
movements in the us dollar exchange rate on the value of these 
us dollar flows by using financial instruments to fix the future value
of the us dollars the group does not apply hedge accounting 
to these transactions in the case of large contracts where the 
future currency income is in a different currency from the operations
functional currency is certain and can be specifically assigned 
to individual transactions the group takes out forward foreign
exchange contracts to minimise the impact of currency fluctuations
the group applies hedge accounting to these transactions
credit risk
the group has implemented policies that require appropriate 
credit checks on potential customers before sales are made 
debtor finance is very rarely used and is reviewed on a case by 
case basis by the board of directors the group monitors the level
of deposits held with overseas banks and financial institutions and
repatriates cash as part of its treasury management
liquidity risk
the group actively maintains a mixture of long term and short term
debt finance that is designed to ensure the group has sufficient
available funds for operations and planned expansions
interest rate cash flow risk
the group has only interest bearing liabilities the group seeks 
to maintain between 40 and 60 of its borrowings at a fixed
interest rate typically through fixed rate swap agreements 
the group applies hedge accounting to these instruments
as a result of the significant decline in the group’s borrowings in 
the year the group has approximately 75 of its gross borrowings
held at a fixed rate at 30 november 2013 however the fixed rate
contracts expired shortly after the year end for the time being while
the group’s gross borrowings are low the board has concluded 
that further interest rate swaps need not be taken out and the
group’s borrowings are at a floating rate from 13 december 2013
strategic report
principal risks and uncertainties continued
4
covs 136 92 tplayout 1  03032014  1345  page 27 strategic report
corporate and social responsibility report
overview strategic 
report
governance financial
statements
other
information
25 porvair plc annual report  accounts 2013
managing our business
responsibly
policy
the board’s policy is to enhance shareholder
value in an ethical and socially responsible
manner the board believes that operating
efﬁciently with high quality standards includes
promoting high standards of health and safety
and helping to protect the environment as a
minimum the group operations are required 
to meet the legal and regulatory requirements
of operating in their local jurisdiction
employment
porvair prides itself on its staff and their 
ability to provide innovative solutions for its
customers porvair is committed to employing
talented people and enabling them to reach
their full potential porvair provides employment
in a wide range of disciplines associated with
the design and manufacture of ﬁltration and
separation equipment
the group involves employees through 
both formal and informal systems of
communication and consultation managers
have a responsibility to communicate effectively
and to promote a better understanding by
employees of the activities and performance 
of the group information relating to trading
company strategy and any other matters of
signiﬁcance are communicated to all
employees through local brieﬁngs
it is the group’s policy to recruittrainpromote
and treat all personnel on grounds solely 
based on individual ability and performance
these principles are applied regardless of sex
sexual orientation religion age nationality or
ethnic origin
the group’s split between male and female
employees is shown below
female male total
directors –5 5
senior managers 
statutory directors of 
subsidiary entities – 16 16
employees 179 437 616
total 179 458 637
applications for employment by disabled
persons are always considered in full bearing
in mind the respective aptitudes and abilities 
of the applicant concerned in the event of
members of staff becoming disabled every
effort is made to ensure that their employment
with the group continues and the appropriate
training is arranged it is the policy of the 
group that the training career development
and promotion of a disabled person should 
so far as possible be identical to that of all
other employees
health and safety
the group recognises its clear responsibilities
for the health and safety of its employees 
and to the communities in which the group
operates by managing and controlling health
and safety and reducing accidents and injuries
the group benefits from increased productivity
lower absenteeism reduced insurance and
healthcare premiums and ultimately a safety
record which holds the group in good stead 
for securing future projects
health and safety responsibility is delegated 
to senior managers within each business
these officers perform regular reviews and
inspect the conditions in which the group’s
employees work discretionary health and
safety benefits for employees include the
availability of gyms and onsite nursing and
counseling staff at certain operations the
group’s regular reporting procedures include 
a review of accidents in the workplace
the group’s insurers and insurance brokers
carry out a rolling programme of reviews of 
the group’s operations as part of their risk
assessments and the recommendations of the
consultants are generally implemented in full
health and safety achievements in the year
have included
• an iosh institution of occupational safety
and health accredited training program 
has been launched this year to develop
knowledge of modern health and safety
management techniques the training which
is mandatory is being rolled out to all our 
uk managers over the next 12 months with
the aim of
– creating and encouraging common
standards for health and safety across 
all of our uk sites and operations
– developing employee involvement in 
health and safety programs and 
– improving group health and safety
communications and information sources 
summary
• the board’s policy is to
enhance shareholder value
in an ethical and socially
responsible manner
• porvair prides itself on its
people and their ability to
provide innovative solutions
for its customers
• porvair recognises its 
clear responsibilities for 
the health and safety of 
its employees and to the
communities in which it
operates
• many of the products
developed by porvair are
used to the beneﬁt of the
environment
• porvair is committed 
to building relationships
with its customers its
suppliers and the local
communities in which 
it operates
covs 136 92 tplayout 1  03032014  1345  page 28 26 porvair plc annual report  accounts 2013
strategic report
corporate and social responsibility report continued
• in the metals filtration business the safety
leadership team has been strengthened 
and safety improvement highlights include 
– improved factory layouts to separate forklift
trucks and pedestrians
– improved safety clothing for all employees
who are required to do electrical work
– new systems to replace manual handling 
of furnace carts and raw materials and
– defensive driver training for the sales team
the environment
many of the products developed by porvair 
are used to the benefit of the environment
examples include
• seal water analysis equipment which is
used inter alia to ensure drinking water is fit
for consumption and to analyse sea and river
water for signs of pollution or changes to
normal mineral composition 
• the patented selee csx™ aluminium filter
which is manufactured without phosphates 
or ceramic fibres has other improved filtration
and manual handling benefits over competitor
products and 
• the group’s nuclear filters which have 
been fitted to a range of demonstration 
plants being assessed as part of the
decontamination and decommissioning work
being carried out at the major us and uk
nuclear waste sites 
this year the group has begun to introduce
filters which will filter lithium alloys these alloys
are less dense and stronger than aluminium
and will allow aircraft of the future to be made
lighter and more fuel efficient
the group consistently considers methods 
of improving its environmental profile
environmental impacts are managed in
conformity with local regulatory requirements
the group’s manufacturing processes have
only a limited potential emissions impact the
group uses solvents in certain of its processes
and has procedures in place for their control
and its metals filtration division manages the
emissions from its kiln firing operations within
agreed regulatory parameters
greenhouse gas emissions
the group has implemented the uk
government’s guidance on measuring and
reporting greenhouse gas emissions in line
with defra guidelines using conversion units
published by the carbon trust the group
reports ‘scope 1 and 2’ emissions in tonnes 
of carbon dioxide scope 1 covers direct
emissions those that emanate directly from
group operations this is principally natural gas
burned in manufacturing and fuel used in
company owned vehicles scope 2 covers
indirect emissions those generated by key
suppliers which is principally electricity
metals filtration in the us runs gas powered
furnaces to fire its ceramic filters the gas to
run these furnaces is the largest component 
of the group’s emissions electricity provides
heat light and power for the group’s premises
and other plant and equipment the plant 
and equipment is mainly light manufacturing
equipment but does include some high
pressure presses and electric furnaces
2010 is used as a base year and kilogrammes
of co2 emission per pound sterling of revenue’
as a measure of intensity the group aims to
reduce its total intensity ratio over time
greenhouse gas ghg emissions                                                                       year ended                  year ended                 year ended   
                                                                                                                                                30 november 2013    30 november 2012    30 november 2010
                                                                                                                                                                        tco 2                             tco 2                             tco 2
scope 1  direct ghg emissions
gas                                                                                                             8470                 8706                 8571 
owned vehicles                                                                                              349                    347                    368
total scope 1 gross emissions                                                                     8819                 9053                 8939
scope 2  indirect ghg emissions
electricity                                                                                                     5611                 5644                 5204
total scope 2 gross emissions                                                                     5611                 5644                 5204
total gross emissions                                                                                14430               14697               14143
                                                                                                                                                                         kco 2 £                          kco 2 £                         kco 2 £
scope 1 intensity ratio                                                                                 0105                 0118                 0142
scope 2 intensity ratio                                                                                 0067                 0074                 0082
total intensity ratio                                                                                    0172                 0192                 0224
covs 136 92 tplayout 1  03032014  1345  page 29 overview strategic 
report
governance financial
statements
other
information
27 porvair plc annual report  accounts 2013
geographical breakdown tonnes of co2
scope 1      scope 2           total       scope 1       scope 2           total      scope 1       scope 2          total
tco 2          tco 2           tco 2           tco 2           tco 2           tco 2          tco 2          tco 2          tco 2
uk 425         1883          2308             438          1806          2244            479          1497         1976
us 8173         3636        11809          8406          3752        12158         8350          3639       11989
row 221              91             312             209               86             295            110               68            178
total 8819         5610        14429          9053          5644        14697         8939          5204       14143 
year ended 30 november 2012 year ended 30 november 2013 year ended 30 november 2010
relationships with customers
the group’s products are generally bespoke
for specific customers and generally have a
very long product lifecycle this naturally
requires the group to build close relationships
with its customers over 80 of the group’s
annual revenue comes from repeat business
from existing customers
most new product introductions are developed
with existing customers and when new
customers are gained it is often after a long
development period over which a close
relationship has developed and a long term
relationship is expected
particularly in aerospace and energy the 
group builds relationships with the immediate
customer for the product and also with the
ultimate end user or manufacturer who is often
the party that certifies the product for example
the airframe manufacturer will be an important
stakeholder but the customer will usually be 
a subassembly manufacturer
relationships with suppliers
the group has an extensive network of
suppliers and subcontractors many of whom
are critical to the manufacture of specific parts
the group has a stable supplier base it seeks
to increase its supplier base by extending the
number of suppliers only where there are
perceived to be risks of under capacity or
resilience in its existing supply chain suppliers
are generally only removed from the approved
list for persistent quality or delivery failures
wherever possible the group seeks local
suppliers to fulfil its requirements the group
carefully selects its suppliers as part of building
a long term relationship with its critical suppliers
the group works closely with them to ensure
that the quality and delivery standards required
by the group are achieved
antibribery and corruption policy
the group seeks to prohibit all forms of bribery
and corruption within its business and complies
with the requirements of all applicable laws
designed to combat bribery and corruption
the group requires all employees agents
intermediaries and consultants to conduct
themselves in accordance with our antibribery
and corruption policy
porvair and the local community
the management of each operation is aware 
of its role within its local communities they
seek to recruit locally and retain a skilled local
workforce and are encouraged to build
relationships with local community
organisations
human rights
the group is aware of its requirements to
respect human rights in all jurisdictions in which
it operates there has however never been 
a human rights issue that has had a direct
impact on the activities of the business and
accordingly the group has nothing further 
to disclose
chris tyler
company secretary
24 january 2014
building relationships 
80
over 80 of the group’s
annual revenue comes from
repeat business from existing
customers
covs 136 92 tplayout 1  03032014  1345  page 30 28 porvair plc annual report  accounts 2013
governance
board of directors
andrew walker 
nonexecutive director
experience and external appointments
appointed to the board in january 2005
he is a nonexecutive director of api
group plc and plastics capital plc he is
chairman of mainstay ltd he was
previously chief executive of mckechnie
plc and south wales electricity plc
committee membership
chairman of the remuneration
committee member of the audit and
nomination committees
paul dean 
nonexecutive director
experience and external appointments
appointed to the board in august 2012
he was finance director of ultra
electronics plc from 2009 to 2013 having
previously been finance director of foseco
from 2001 until its acquisition by cookson
plc in 2008 from 1989 to 2001 he held 
a number of senior finance roles in burmah
castrol plc he is a chartered management
accountant
committee membership
chairman of the audit committee and
member of the remuneration and
nomination committees
charles matthews obe 
nonexecutive chairman
experience and external appointments
appointed to the board in january 2005
and became chairman on 12 april 2006
he is also chairman of norican group 
aps beck  pollitzer ltd and african
petroleum corp ltdhe was previously
nonexecutive director of fki plcchief
executive of cosworth managing director
of rolls royce and bentley motor cars
and a member of the vickers group plc
executive board
committee membership
chairman of the nomination committee
member of the audit and remuneration
committees
ben stocks 
group chief executive
experience and external appointments
joined the group in february 1998 
he was previously managing director 
of the speciality packaging division of
carnauld metal box he holds an mba
from insead
committee membership
none
chris tyler
group finance director 
experience and external appointments
appointed to the board in september
2004 he had previously held a number
of senior financial positions at cable 
wireless latterly as chief financial officer
of cable  wireless in the caribbean 
he is a chartered accountant
committee membership
group company secretary 
and pension scheme trustee
role of the board
the group is directed and controlled
by the board it provides strategic
leadership and support with the aim 
of developing the business profitably
whilst at the same time assessing 
and managing the associated risks
the board ensures that the financial
management controls and resources
are in place to enable the business to
meet its objectives the directors take
collective responsibility for the group’s
performance
covs 136 92 tplayout 1  03032014  1345  page 31 overview strategic 
report
governance financial
statements
other
information
29 porvair plc annual report  accounts 2013
governance
directors’ report
the directors are pleased to present their annual report and
the audited accounts of the group for the year ended 30
november 2013
the company
porvair plc is a public limited company incorporated in england
and wales and domiciled in the uk with a listing on the london
stock exchange under the symbol prv  the address of its
registered office is 7 regis place bergen way kings lynn
norfolk pe30 2jn
business review
the business review is covered in the strategic report 
the group’s strategy objectives key performance indicators
likely future developments and risks and uncertainties are
discussed throughout the report 
acquisitions
on 4 june 2013 the group through its subsidiary porvair
filtration group inc purchased the goodwill trade and 
assets of eisenmann metallurgical llc the trade is the
manufacture of specialist filters and is based in the usa 
the total consideration is us5995000 £3890000
us3995000 £2582000 was paid in the year ended 
30 november 2013 with further payments due up to 
4 june 2015
on 20 september 2013 the group through its subsidiary 
seal analytical inc purchased the trade and assets of thomas
cain inc a manufacturer of environmental laboratory equipment
and consumables total consideration is up to us1987000
£1241000 us1087000 £679000 was paid in the year
ended 30 november 2013 and the remaining us900000
£562000 is contingent upon achievement of agreed profit
performance in the year ending 30 november 2014  
dividends
an interim dividend of 11 pence per share 2012 10 penny
per share was paid on 6 september 2013 the directors
recommend the payment of a final dividend of 18 pence 
per share 2012 16 pence per share on 6 june 2014 to
shareholders on the register on 2 may 2014 the exdividend
date is 30 april 2014 this makes a total dividend for the year
of 29 pence per share 2012 26 pence per share
directors and their interests
the names and biographical details of the directors are set 
out on page 28 paul dean charles matthews ben stocks
chris tyler and andrew walker all served throughout the year
michael gatenby retired from the board at the annual general
meeting on 16 april 2013 andrew walker will retire from the
board at the annual general meeting on 8 april 2014
in accordance with best practice it is the board’s intention that
all directors should offer themselves for reelection each year
the appointment and replacement of directors is governed 
by the articles the companies act 2006 the uk corporate
governance code and related regulation and legislation
applying to uk listed companies the articles require there to
be a minimum of three directors and permit a maximum of 15
and provide that the business of the company shall be
managed by the board of directors which may exercise all
powers of the company the board of directors may make
such arrangements as they see fit to delegate those powers
except that the board retains specific authority over the matters
reserved for the board which are summarised in the board 
of directors section in the corporate governance report on
page 33
during the year and up to the date of this report the group
maintained insurance providing liability cover for its directors
details of all the beneficial and nonbeneficial interests of the
directors in the shares of the company share options and
service contracts are set out in the remuneration report on
pages 37 to 46 none of the directors had a material interest 
in any contract of significance in relation to the company 
or its subsidiaries during the year
there are no agreements between the company and its
directors or employees that provide for compensation for 
loss of office or employment in the event of a takeover 
of the company
the company has in place procedures to deal with conflicts 
of interest the company follows the guidance on conflicts 
of interest issued by the association of general counsel and
company secretaries of the ftse
research and development
the group continues to undertake a research and
development programme with the objective of identifying 
and developing new materials and products which have the
potential to transform the growth of the group the cost to 
the group in the year under review was £32 million 2012 
£31 million which was written off to the income statement
and no development expenditure was capitalised in the year or
the preceding year the expenditure is of a development nature
and is largely undertaken inhouse rather than by third parties
greenhouse gas emissions
the disclosure of the group’s greenhouse gas emissions is
given in the corporate and social responsibility report on pages
26 and 27 which forms part of this report and is incorporated
into it by cross reference
share capital
the company has one class of ordinary share capital which
carries no right to fixed income all of the company’s shares 
in issue are fully paid and each share carries the right to vote 
at general meetings of the company during the year the
company issued 1121026 shares to satisfy the exercise 
of share options
further details of the share capital of the company are given 
in note 21 to the financial statements on page 74
there are no specific restrictions on the size of a holding in 
the company nor on the transfer of shares which are both
governed by the provisions of the articles and prevailing
regulation and legislation governing uk listed companies 
the directors are not aware of any agreements between
holders of the company’s shares that may result in restrictions
on voting rights no person has special rights of control over
the company’s share capital
covs 136 92 tplayout 1  03032014  1345  page 32 30 porvair plc annual report  accounts 2013
governance
directors’ report continued
each year the board seeks shareholder approval to renew the
board’s authority to allot relevant securities and to purchase its
own shares
contracts
the company is a party to a number of agreements that take
effect alter or terminate upon a change of control of the
company such as commercial contracts banking agreements
property lease arrangements and employee share plans
substantial shareholders
as at 24 january 2014 the company has been notified of the
following substantial shareholdings held indirectly comprising
3 or more of the issued share capital of the company
                                                                                                             ordinary
                                                                                                        shares          percentage
                                                                                                    number                        
ggg spa                                                   7369430              169
mg group limited                                   6080987              139
alliance trust plc                                      3929155                90
impax environmental plc                            1872782                43
cavendish asset management                  1532423                35
old mutual asset managers                       1440000                33
corporate governance
the disclosure requirements set out in the disclosure and
transparency rules paragraph 72 are included within the
corporate governance report on pages 33 to 35 which forms
part of this report and is incorporated into it by cross reference
employment policies
the group’s employment policies are described in the
corporate and social responsibility report on page 25 which
forms part of this report and is incorporated into it by cross
reference
financial risk management
the group’s operations expose it to a variety of financial risks
that include the effects of price risk foreign exchange risk
credit risk liquidity risk and interest rate cash flow risk the
group has in place risk management procedures that seek 
to limit the adverse effects on the financial performance 
of the group of these financial risks
given the size of the group the directors have not delegated
the responsibility of monitoring financial risk management to 
a subcommittee of the board the policies set by the board 
of directors are implemented by the company’s finance
department which has a policy and procedures manual that
sets out specific guidelines to manage interest rate risk and
credit risk and circumstances where it would be appropriate 
to use financial instruments to manage these
further details on the specific risks related to financial
management and their mitigation are given on pages 
21 to 24
going concern
after having made appropriate enquiries including a review of
the group’s budget for 2014 its medium term plans and taking
into account the available banking facilities the directors have 
a reasonable expectation that the group and company has
adequate resources to continue in operational existence for 
the foreseeable future accordingly they continue to adopt the
going concern basis in preparing these accounts
annual general meeting
the annual general meeting of the company is to be held 
on tuesday 8 april 2014 the notice for this meeting and 
proxy forms have been sent to shareholders separately 
the resolutions are
resolution 1 – to receive the company’s annual accounts 
for the year ended 30 november 2013
resolution 2 – approval of the directors’ remuneration report
resolution 3 – approval of the directors’ remuneration policy 
the remuneration committee has presented a remuneration
policy which will bind the company in its awards of remuneration
to the directors until a new resolution is approved by
shareholders a resolution will be put to shareholders at 
least every three years
resolution 4 – to approve the final dividend of 18 pence 
per share
resolutions 5 to 8 – all of the directors with the exception 
of andrew walker offer themselves for reelection 
brief biographies of the directors are set out on page 28 
of the annual report
resolution 9 – reappointment of pricewaterhousecoopers
llp as auditors
resolutions 10 and 11 – directors’ authority to allot 
shares ordinary resolution and disapply preemption rights
special resolution
resolution 10 authorises the directors to allot shares 
under section 551 of the companies act 2006 paragraph 
111 gives the directors customary authority to allot ordinary
shares or grant such subscription or conversion rights as are
contemplated by sections 5511a and b respectively of the
companies act 2006 up to an aggregate nominal amount 
of £291557 being an amount equal to one third of the
company’s issued share capital as at 24 january 2014 
as at 24 january 2014 the company did not hold any 
treasury shares 
the authorities granted under resolution 10 shall expire at the
next annual general meeting of the company resolution 10
replaces a similar resolution passed at the annual general
meeting of the company held on 16 april 2013
if the directors wish to allot shares or other equity securities for
cash or sell any shares which the company holds in treasury
following a purchase of its own shares pursuant to the authority
in resolution 11 the companies act 2006 requires that such
shares or other equity securities are offered first to existing
shareholders in proportion to their existing holding resolution
11 asks shareholders to grant the directors authority to allot
equity securities or sell treasury shares for cash up to an
aggregate nominal value of £43733 being 5 of the
company’s issued ordinary share capital as at 24 january
2014 without first offering the securities to existing
shareholders the resolution also disapplies the statutory 
covs 136 92 tplayout 1  03032014  1345  page 33 overview strategic 
report
governance financial
statements
other
information
31 porvair plc annual report  accounts 2013
preemption provisions in connection with a rights issue and
allows the directors in the case of a rights issue to make
appropriate arrangements in relation to fractional entitlements
or other legal or practical problems which might arise the
directors confirm that they do not intend to issue in excess 
of 75 of the company’s issued ordinary share capital within
any rolling three year period without prior consultation with
shareholders the authority will expire at the next annual
general meeting of the company
resolution 12 – purchases of own shares by the company
special resolution
resolution 12 to be proposed at the annual general meeting
seeks authority from shareholders for the company to make
market purchases of its own ordinary shares such authority
being limited to the purchase of 10 of the ordinary shares in
issue as at 24 january 2014 the maximum price payable for
the purchase by the company of its own ordinary shares will be
limited to the higher of i 5 above the average of the middle
market quotations of the company’s ordinary shares as derived
from the daily official list of the london stock exchange for
the five business days prior to the purchase and ii the higher 
of the price of the last independent trade of an ordinary share
and the highest current independent bid for an ordinary share
as derived from the london stock exchange trading system
sets the minimum price payable by the company for the
purchase of its own ordinary shares will be 2 pence per share
being the nominal value of an ordinary share the authority 
to purchase the company’s own ordinary shares will only be
exercised if the directors consider that there is likely to be a
beneficial impact on earnings per ordinary share and that it is 
in the best interests of the company at the time the resolution
renews a similar resolution passed at the annual general
meeting of the company held on 16 april 2013 any ordinary
shares so purchased by the company will be held in treasury
by the company and will remain in issue and be capable of
being resold by the company or used in connection with
certain of its share schemes
to understand the impact of dilution options to subscribe for
up to 1613544 ordinary shares have been granted and are
outstanding as at 24 january 2014 being the latest practicable
date prior to publication of this document which if issued
would represent 36 of the issued ordinary share capital at
that date if the directors were to exercise in full the power for
which they are seeking authority under resolution 13 the
options outstanding as at 24 january 2014 would represent
39 of the ordinary share capital excluding shares held in
treasury in issue following such exercise
resolution 13 – calling of general meetings 
special resolution
resolution 13 to be proposed at the annual general meeting
seeks authority from shareholders to hold general meetings
other than annual general meetings on 14 days’ clear notice
this is permissible under the articles and the companies act
2006 however pursuant to the eu shareholders’s rights
directive the company must offer the facility accessible to all
shareholders to vote by electronic means and must obtain
specific shareholder approval on an annual basis to retain this
ability the directors believe that there may be circumstances 
in which it will be in the interests of the company to be able to
convene meetings at such short notice the shorter notice
period would not be used as a matter of course but only
where it is merited by the business of the meeting and is
thought to be to the advantage of the shareholders as a whole
accordingly the directors believe that it is important for the
company to retain this flexibility resolution 13 renews a similar
resolution passed at the annual general meeting of the
company held on 16 april 2013
resolution 14 – to establish a new save as you earn
“saye” scheme
resolution 14 to be proposed at the annual general meeting
seeks to reintroduce an hm revenue  customs approved
saye scheme the existing saye scheme that was
implemented in 2003 expired in 2013 the scheme was
implemented to incentivise and reward all employees it is
proposed that a new saye plan be implemented to enable 
all uk employees to benefit from the future growth and 
success of the company
statement of directors’ responsibilities 
the directors are responsible for preparing the annual report
the remuneration report and the financial statements in
accordance with applicable law and regulations
company law requires the directors to prepare financial
statements for each financial year under that law the directors
have prepared the group financial statements in accordance
with international financial reporting standards ifrss as
adopted by the european union and the parent company
financial statements in accordance with united kingdom
generally accepted accounting practice united kingdom
accounting standards and applicable law under company law
the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state
of affairs of the group and the company and of the profit or
loss of the group for that period in preparing these financial
statements the directors are required to
• select suitable accounting policies and then apply them
consistently 
• make judgements and accounting estimates that are
reasonable and prudent 
• state whether ifrss as adopted by the european union and
applicable uk accounting standards have been followed
subject to any material departures disclosed and explained 
in the group and parent company financial statements
respectively and 
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the company will
continue in business 
the directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the company and the group and
enable them to ensure that the financial statements and the
remuneration report comply with the companies act 2006
and as regards the group financial statements article 4 of the
ias regulation they are also responsible for safeguarding the
assets of the company and the group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities
covs 136 92 tplayout 1  03032014  1345  page 34 the directors are responsible for the maintenance and integrity
of the company’s website legislation in the united kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions  
the work carried out by the auditors does not involve
consideration of these matters and accordingly the auditors
accept no responsibility for any changes that may have
occurred to the financial statements since they were initially
presented on the website 
the directors consider that the annual report and accounts
taken as a whole is fair balanced and understandable and
provides the information necessary for shareholders to assess
the company’s performance business model and strategy  
each of the directors whose names and functions are listed 
on page 28 confirm that to the best of their knowledge
• the group financial statements which have been prepared in
accordance with ifrss as adopted by the eu give a true and
fair view of the assets liabilities financial position and profit 
of the group and
• the chairman’s statement the chief executive’s report the
finance director’s review and the directors’ report when
taken together include a fair review of the development and
performance of the business and the position of the group
together with a description of the principal risks and
uncertainties that it faces
directors’ responsibility for provision of information 
to the auditors
so far as each director is aware there is no relevant audit
information of which the company’s auditors are unaware
each director has taken all the steps that he ought to have
taken as a director in order to make himself aware of any
relevant audit information and to establish that the company’s
auditors are aware of that information
independent auditors
pricewaterhousecoopers llp have indicated their willingness
to continue in office and a resolution concerning their 
reappointment will be put to the annual general meeting
by order of the board
chris tyler
company secretary
24 january 2014
32 porvair plc annual report  accounts 2013
governance
directors’ report continued
covs 136 92 tplayout 1  03032014  1345  page 35 compliance
the following sets out the main principles of good governance
in the 2012 uk corporate governance code that have been
followed by the board and how those principles have been
applied the directors are of the opinion that the company has
complied with the provisions of the uk corporate governance
code which is publicly available at wwwfrcorg throughout the
year except where explicitly set out below
role of the board
the group is directed and controlled by the board it provides
strategic leadership and support with the aim of developing the
business profitably whilst at the same time assessing and
managing the associated risks the board ensures that the
financial management controls and resources are in place to
enable the business to meet its objectives the directors take
collective responsibility for the group’s performance
the board has a fixed schedule for reviewing the group’s
operating performance and has other specific responsibilities
reserved to it which include
• approval of the published financial results and dividends 
• appointments to the board and other board committees 
• approval of the strategic direction of the business 
• approval of expenditure over certain limits 
• approval for acquisitions and disposals 
• approval of treasury policy and significant new financing and 
• approval of the funding policies of the defined benefit 
pension scheme 
the executive directors manage the day to day operations 
of the business within the framework set out by the board
outside the formal schedule of board meetings the chairman
and nonexecutive directors make themselves available for
consultation with the executive team as necessary
the board has a schedule of seven prearranged meetings
during the year in addition such other meetings as are required
are arranged to deal with specific issues or transactions 
during the year there was full attendance at all prearranged
board meetings
the board undertook a rigorous self assessment review during
the year to consider its own performance the procedures
included individual interviews by the chairman with each
director completion of an assessment form and discussion 
of the findings at a board meeting the senior independent
nonexecutive director maintains regular contact with the 
other independent nonexecutive directors and the executive
directors sufficient to monitor the performance of the
chairman the chairman in consultation with the executive
directors monitors the performance of the nonexecutive
directors
board of directors
the board consists of five directors two executive directors
and three nonexecutive directors including the chairman
the board is chaired by charles matthews ben stocks is the
group chief executive and chris tyler is the group finance
director paul dean charles matthews and andrew walker 
are independent nonexecutive directors andrew walker is
the senior independent nonexecutive director the board
considers that charles matthews continues to be an
independent nonexecutive director after his appointment 
as chairman
the directors’ appointment and removal is a matter for the
board as a whole the senior nonexecutive director is
available for consultation with shareholders through the
company secretary by written submission the executive
directors and the chairman have met with the company’s
major shareholders and other potential investors on a regular
basis and have reported to the board on those meetings
the nonexecutive directors’ terms of appointment do not
specify a specific period for their appointment and therefore 
the terms are not in compliance with provision b23 of the 
uk corporate governance code however in accordance 
with best practice all of the directors offer themselves for 
reelection at each annual general meeting all newly
appointed directors offer themselves for election at the first
annual general meeting following their appointment the
chairman considers that following the application of the
board’s formal performance evaluation programme each
director’s performance continues to be effective and each
director has demonstrated commitment to his role 
on joining the board a new director receives appropriate
induction including meeting with other directors visiting 
the group’s principal operations and meeting with senior
management and the group’s principal advisers
the board has put in place a procedure by which any 
director may take independent professional advice at the
expense of the company in furtherance of his duties as 
a director of the company
the company maintains directors’ and officers’ 
liability insurance
overview strategic 
report
governance financial
statements
other
information
33 porvair plc annual report  accounts 2013
governance
corporate governance
covs 136 92 tplayout 1  03032014  1345  page 36 34 porvair plc annual report  accounts 2013
governance
corporate governance continued
board committees
audit committee
the board has established an audit committee to review 
and advise the board on matters relating to the internal controls
and financial reporting of the group  
the audit committee currently comprises all of the independent
nonexecutive directors of the company the chairman of 
the audit committee is paul dean who succeeded michael
gatenby following the annual general meeting in april 2013
the committee includes charles matthews the chairman of
the company the board considers that all members of the
audit committee have recent and relevant financial experience
to enable it to discharge its function
the report of the audit committee on page 36 includes 
details of the audit committee’s remit scope of work in the 
year and related judgments
the audit committee met four times during the year 
there was full attendance by the members
the audit committee’s full terms of reference are available 
on the group’s website wwwporvaircom
remuneration committee
the remuneration committee determines and recommends to
the board the framework or broad policy for the remuneration
and long term incentive arrangements of the company’s
executive directors the remuneration committee comprises
all of the independent nonexecutive directors of the
company andrew walker is the chairman of the committee
the group chief executive may be invited to attend and 
speak at meetings of the remuneration committee but 
does not participate in any matter which impacts upon his 
own remuneration arrangements the remuneration of the 
nonexecutive directors including the chairman is set by 
the executive directors
the remuneration report on pages 37 to 46 includes details 
on remuneration policy practices and the remuneration 
of the directors
the remuneration committee met twice during the year 
and was fully attended by all of its members  
the remuneration committee’s full terms of reference are
available on the group’s website wwwporvaircom
nomination committee
the company’s nomination committee provides a transparent
process and procedure for the appointment of new directors 
to the board the nomination committee comprises all of the
nonexecutive directors and is chaired by the chairman of the
company the nomination committee’s responsibilities include
• identifying and nominating candidates to fill board vacancies 
• evaluating the balance of skills knowledge and experience on
the board and the leadership needs of the organisation and 
• succession planning 
the company recognises the importance of diversity including
gender on the board and throughout the executive functions
within the business
the nomination committee did not meet during the year 
the group’s leadership and succession planning was
considered in a meeting of the full board
the nomination committee’s full terms of reference are
available on the group’s website wwwporvaircom
takeover directive
disclosures relating to the takeover directive are included in 
the directors’ report under “share capital” on page 29
internal control
the turnbull guidance issued in 2005 gives guidance for
directors on reviewing internal controls and reporting the
company has complied in full throughout the year and up 
to the date the financial statements were approved with the
recommendations of the turnbull guidance
the board has overall responsibility for ensuring that the group
maintains a system of internal controls and for reviewing its
effectiveness the system is not designed to eliminate the risk
that the group’s objectives will not be achieved but to ensure
that there is an ongoing process for identifying evaluating and
managing the significant risks as with any such system it can
only provide reasonable but not absolute assurance against
material misstatement or loss the board has reviewed the
effectiveness of the process regularly throughout the year 
the group’s key procedures are as follows
control environment – each operating business has its 
own management group which meets regularly to monitor
operational matters each operating business is responsible 
for establishing its own system of internal controls and for
ensuring compliance with those controls the managing
director of each operating business reports to the group 
chief executive and clearly defined lines of responsibility 
covs 136 92 tplayout 1  03032014  1345  page 37 overview strategic 
report
governance financial
statements
other
information
35 porvair plc annual report  accounts 2013
have been established within this organisational structure 
the senior finance executive in each operation has a dual
responsibility to report within his operation to the managing
director and to the group finance director the executive
directors visit all operations regularly to perform 
detailed reviews
risk management – operating business management have 
a clear responsibility for the identification of risks facing each
operation and for establishing procedures to investigate and
monitor such risks the board reviews a group register of risks
and mitigation on a regular basis as part of its normal board
reporting the board also commissions independent reviews 
of the key risks facing the group as appropriate
information and control systems – each operating business
maintains its own internal systems and controls designed to
provide management with regular and reliable management
information the group has a comprehensive process of annual
budgets and detailed monthly reporting the annual budget of
each operating business and the consolidated group budget
are approved by the board as part of its normal responsibilities
the board receives copies of the monthly management
accounts for each month and the performance of the group 
is reviewed in detail at each board meeting
monitoring system – the board has established a framework of
controls encompassing procedures applicable to all businesses
that are subject to executive review the group operates a 
selfassessment process so that the operating businesses can
quantify the extent of their compliance with control objectives
this process is monitored by an internal audit cycle conducted
by peer review by the group’s financial controllers directed by
the group finance director the board considers that the peer
review process provides an appropriate level of review the
group has a formal whistle blowing procedure which gives
employees the opportunity to escalate their concerns
ultimately to the senior nonexecutive director
consolidation process – full management accounts for 
each entity in the group are consolidated each month and
review and analysis is carried out on those results these
consolidated accounts form the basis of reports that are
provided to board members every month
the audit committee and the board have reviewed the
effectiveness of the group’s internal controls for the period 
1 december 2012 up to the date of approval of the annual
report and accounts and have addressed issues as they 
have been identified
chris tyler
company secretary
24 january 2014
covs 136 92 tplayout 1  03032014  1345  page 38 report of the audit committee
the audit committee has a formal timetable of 
meetings representatives of the company’s auditors
pricewaterhousecoopers llp  attend meetings by invitation
other employees of the company may be invited to attend
meetings as and when required
the committee has a formal agenda timetable and terms 
of reference the committee met four times in the year
two of those meetings were held prior to the board meetings
to approve the announcement of the group’s full year and
interim announcements to consider the ﬁnancial reporting
judgments made by the management its deliberations 
are informed by accounting papers and ﬁnancial reports
prepared by the management and reviews prepared by 
the group’s auditors 
the committee’s signiﬁcant judgment in respect of the year
under review related to the forecasts adopted in the accounting
for large longterm contracts speciﬁcally the committee
considered whether the judgments used to forecast the
percentage completion and the costs to complete including
provisions for rework costs and other contractual obligations 
in each of the contracts were reasonable
in addition certain judgments which are inherent to the
preparation of the ﬁnancial statements and are considered
each year including the choice of an appropriate weighted
average cost of capital used in assessing whether goodwill is
impaired and the assumptions underlying the valuation of the
pension liabilities were carefully considered by the committee
the committee also reported to the board that it considered
that taken as a whole the 2013 annual report was fair
balanced and understandable and included the necessary
information to assess the performance business model and
strategy of the company
in addition to its work reviewing the group’s ﬁnancial
statements the committee has
• monitored the company’s internal ﬁnancial controls and the
company’s internal control and risk management systems
and ensured that these are properly reviewed by the group’s
management 
• reviewed the scope of the internal audit work done in
reviewing the operating companies’ internal controls and
procedures the internal audit work is undertaken through 
a system of peer reviews by the group’s ﬁnance function
the committee considers the group to be too small to 
justify a dedicated internal audit function
• made recommendations to the board in relation to the
appointment of the external auditor and approved the
remuneration and terms of engagement of the external
auditor 
• monitored the external auditor’s effectiveness independence
and objectivity the committee in conjunction with the
management considered the robustness of the audit
process the quality and timeliness of its delivery the quality 
of the auditor’s staff and reporting and its value for money
• reviewed arrangements by which staff of the company may
raise concerns about possible improprieties in matters of
ﬁnancial reporting or other matters
• considered its own effectiveness and made
recommendations to the board for improvements where
necessary and
• reported to the board on how it has discharged its
responsibilities
the audit committee has set a policy which is intended to
maintain the independence and objectivity of the company’s
auditors when acting as auditor of the group accounts the
policy governs the provision of audit and nonaudit services
provided by the auditor and in summary requires signiﬁcant
nonaudit related services to be subjected to a competitive
tendering process the fees paid to the auditor for audit
services audit related services and other nonaudit services are
set out in note 3 of the consolidated ﬁnancial statements the
audit has always been conducted by pricewaterhousecoopers
llp or its predecessor ﬁrms and has not been the subject of a
competitive tender the audit committee do however carefully
consider the reappointment of the auditors each year prior to
making their recommendation to the shareholders the auditors
are also engaged to provide a review of the group’s interim
results and are auditors to the group’s pension scheme
during the course of the year the group reviewed the provision
of its tax services which were previously provided by the
auditors these services were put out to competitive tender
and the group appointed grant thornton uk llp to provide
them there are no other signiﬁcant services provided by the
group’s auditors
the audit committee is authorised to engage the services 
of external advisers as it deems necessary at the company’s
expense in order to carry out its function
the audit committee’s full terms of reference are available 
on the group’s website wwwporvaircom
statement by the chairman of the audit committee
the committee’s role is to assist the board by reviewing
the integrity of the group’s ﬁnancial reporting the quality 
of the external and internal audit review processes the
appropriateness of the group’s internal controls and
compliance with a range of ﬁnancial governance and 
other compliance issues
new requirements this year require the committee to
disclose the signiﬁcant accounting judgments it has
considered in the course of its review of the annual report
and to consider whether the annual report is fair balanced
and understandable
paul dean
chairman of the audit committee
24 january 2014 
36 porvair plc annual report  accounts 2013
governance
report of the audit committee
covs 136 92 tplayout 1  03032014  1345  page 39 overview strategic 
report
governance financial
statements
other
information
37 porvair plc annual report  accounts 2013
governance
remuneration report 
annual report on remuneration
this report complies with the uk corporate governance
code published in september 2012 the “uk corporate
governance code” and other relevant regulation including
the remuneration regulations it sets out the group’s
remuneration policy and details of directors’ remuneration
a resolution to approve this report will be proposed at the
annual general meeting in april 2014
the committee
the members of the remuneration committee are drawn
solely from the independent nonexecutive directors to be
quorate the committee is required to comprise at least two
members during the year the committee comprised paul
dean michael gatenby until his resignation on 16 april
2013 charles matthews and andrew walker chairman 
the committee uses external published benchmark data to
guide its deliberations
the committee also has an advisory role in relation to major
changes in employee benefit structures throughout the
company and the group
this part of the remuneration report has been audited
summary of executive directors’ remuneration packages
the executive directors’ remuneration packages consist of
a base salary a discretionary annual cash bonus earned for
the achievement of financial and nonfinancial objectives the
grant of share options and long term incentives with three
year financial performance targets and the provision of other
benefits comprising pension benefits a cash allowance in lieu
of a company car medical insurance and wellness benefits
life insurance and permanent health insurance
annual statement by the chairman of the
remuneration committee “the committee”
the committee’s remit is to set policies and levels of
remuneration to encourage actions by management that
are in the long term interests of the company and its
shareholders
the committee is responsible for determining
• the framework for the remuneration of the executive
directors
• the overall remuneration package of each executive
director including if appropriate bonuses incentive
payments and share options
• the targets for any performance related elements of the
executive directors’ remuneration
• the policy for and scope of pension arrangements for
each executive director and
• the terms of termination this includes ensuring that
any payments made are fair to the individual and the
group that failure is not rewarded and that the duty to
mitigate loss is fully recognised
the company is now subject to new remuneration
reporting regulations the large and mediumsized
companies and groups accounts and reports
amendment regulations 2013 the “remuneration
regulations” and this report therefore takes a different
form to previous years in particular the remuneration
regulations require the company to present a
forwardlooking remuneration policy setting out the
company’s future policy on directors’ remuneration
including the company’s approach to exit payments and
certain additional disclosures regarding the directors’
remuneration the remuneration policy is subject to
shareholder approval and a resolution will be proposed at
the company’s 2014 agm to approve the policy the
remuneration report excluding the remuneration policy
report remains subject to an advisory shareholder
approval as previously 
during the year the committee sought to
• set executive directors’ remuneration at levels to
incentivise and reward excellent performance in line
with the long term interests of the group and its staff
and shareholders
• maintain a substantial proportion of total remuneration
as performance related
• enable the executive directors through excellent
performance to attain and keep a substantial
shareholding in the business
andrew walker
chairman of the remuneration committee
24 january 2014
aremunreport p3746 tprf66104p01cln  03032014  1340  page 37 governance
remuneration report continued
38 porvair plc annual report  accounts 2013
executive directors’ remuneration
the following table shows the total remuneration of the executive directors for the year
salary taxable annual long term total
and fees benefits pension bonus incentives 2013
£000 £000 £000 £000 £000 £000
executive directors
b d w stocks 276 28 32 200 633 1169
c p tyler 192 25 30 140 443 830
salary taxable annual long term total
and fees benefits pension bonus incentives 2012
£000 £000 £000 £000 £000 £000
executive directors
b d w stocks 269 27 64 189 378 927
c p tyler 188 23 34 131 252 628
in 2013 the executive directors incurred paye tax and national insurance contributions amounting to £1200000 2012 £352000
including amounts payable on the exercise of long term incentive share options in 2012 the executive directors did not
exercise any long term incentive share options
benefits
benefits for the executive directors comprise a cash allowance in lieu of a company car medical insurance and wellness
benefits life insurance and permanent health insurance life assurance benefits covering a lump sum of four times salary on
death in service and a 20 of salary spouse’s pension are provided through the porvair pension plan the executive directors
are covered by the group’s permanent health insurance scheme
pension entitlements
the porvair plc pension and death benefit plan “the plan” is a contributory defined benefit scheme which is now closed to new
employees pension benefits from the plan were subject to the hmrc earnings cap and the group has continued to maintain an
earnings cap since the hmrc limits were removed in april 2006 
pension benefits up to the capped limit of £138000 were provided in the period for ben stocks by the plan ben stocks is
entitled to the same pension benefits from the plan as all other members the plan has a normal retirement age of 65 only basic
salary is pensionable ben stocks was aged 51 on 30 november 2013 in the event that he retires early he may at the discretion
of the trustees of the plan apply to draw a reduced pension there is no actuarial benefit to the individual to retiring early ben
stocks also received a 15 contribution to a self invested pension plan “sipp” on the difference between his full salary and the
capped limit covered by the plan 
pension benefits were provided for chris tyler by a contribution of 15 of full salary to a sipp 
annual bonus
bonus payments to executive directors are made at the discretion of the committee for achievement of group financial
performance targets and strategic objectives in 2012 and 2013 awards were capped at 75 of base salary up to 60 may be
paid on achievement of financial performance targets and up to 15 on achievement of strategic objectives bonuses are not
pensionable but may be paid directly into the executive directors’ pension schemes if requested 
the table below shows the targets set for 2013
                                                                                                                                                                                                                salary            salary                                                
                                                                                                                                                              target at         target for     awarded for     awarded for                                          of
                                                                                                                                                             operating       maximum operating plan        maximum                                       salary
target                                                                                                                    plan level             payout    achievement    achievement         achieved          awarded
adjusted operating cash flow £38m £54m 20 60 £115m 60
strategic securing at least two large 
scale long term key contracts and see
improving aerospace delivery performance na na 0 15 below 125
in assessing the nonfinancial targets for 2013 the committee noted that the key objective of securing two major contracts had
been achieved securing a 10 bonus and that delivery performance had improved but not to the level required for a full bonus
payout so only a 25 bonus of the 5 available was paid
in 2012 all financial performance targets were exceeded but one strategic objective was not met accordingly a bonus of 70
of salary was awarded to the executive directors 
aremunreport p3746 tprf66104p01cln  03032014  1340  page 38 overview strategic 
report
governance financial
statements
other
information
39 porvair plc annual report  accounts 2013
vesting of long term share plan
2012 vesting
options granted in 2010 under the porvair long term share plan 2008 the “2008 scheme” are exercisable in full if the group
achieved earnings per share “eps” of at least 110 pence in the financial year ended 30 november 2012 “fy2012” 30 of
the award vested if the group achieved eps of 74 pence in fy2012 50 of the award vested if the group achieved eps of
80 pence in fy2012 a sliding scale operated if the eps was between 80 pence and 110 pence accordingly 92 of these
options vested as a result of the eps performance in fy2012 the remaining options lapsed
2013 vesting
options granted in 2011 under the 2008 scheme were exercisable in full if the group achieved eps of at least 125 pence per
share in the financial year ended 30 november 2013 “fy2013” 30 of the award vested if the group achieved eps of
80 pence in fy2013 50 of the award vested if the group achieved eps of 95 pence in fy2013 a sliding scale operated if
the eps was between 80 pence and 95 pence and between 95 pence and 125 pence 100 of these options vested as a
result of the performance in the year
share options and long term incentive plan shares
awards of share options and long term incentive plan shares are at the discretion of the committee 
the company operates two discretionary share option plans
• market priced options under the porvair 2005 unapproved share options scheme the ‘2005 scheme’ and 
• nominal priced options under the 2008 scheme 
both schemes provide options with a ten year life and are subject to vesting conditions after three years based on performance
conditions set by the committee 
the company also periodically offers invitations to uk employees to join save as you earn “saye” schemes currently 
there is a three year and five year scheme running following an invitation in october 2011 
the maximum number of shares that may be issued under the company’s option schemes may not exceed 10 of the
company’s issued share capital in any 10 year period the maximum number of shares that may be issued under the 2005
scheme may not exceed 5 of the company’s issued share capital in any 10 year period 
the market price of the company’s ordinary shares at 30 november 2013 was 278 pence 2012 152 pence
the range of market prices during the year was 153 pence to 298 pence
directors’ holdings in shares and share options
in awarding long term incentive shares to the executive directors the remuneration committee encourages the executive
directors to build up a holding of shares in the company the committee prefers executive directors to hold the equivalent of at
least the value of one year’s base salary in porvair shares after exercising options in april 2013 each of the executive directors
either met or exceeded this guideline from that date onwards
the beneficial interests at 30 november 2013 and 30 november 2012 of the directors and their connected persons in the
ordinary shares of the company are shown below there have been no changes in those interests up to the date of this report
2013 2012
ordinary share ordinary share
shares options shares options
number number number number
executive directors
b d w stocks 441502 701304 130199 1196604
c p tyler 252450 499186 65250 757186
nonexecutive directors
p dean 5000 – ––
c l matthews 30000 – 30000 –
a j walker 29499 – 29454 –
aremunreport p3746 tprf66104p01cln  03032014  1340  page 39 governance
remuneration report continued
40 porvair plc annual report  accounts 2013
details of the share options held by the executive directors at the end of the year which have been granted under porvair share
option schemes are as follows
at 30 at 30
november granted exercised in november
2012 in the year the year 2013 exercise exercisable
number number number number price grant date from expiry date
b d w stocks
vested
2005 emi 76330 – 76330 – 13100p 27012006 27012009 27012016
2005 123670 – 123670 – 13100p 27012006 27012009 27012016
2005 200000 – 200000 – 6950p 30012009 30012012 30012019
2008 276900 – 276900 – 200p 28012010 28012013 28012020
2008 250000 – – 250000 200p 27012011 27012014 27012021
unvested
saye 9704 –– 9704 9300p 01102011 01102014 01042015
2008 260000 – – 260000 200p 02022012 02022015 02022022
2008 – 181600 – 181600 200p 01022013 01022016 01022023
1196604 181600 676900 701304
c p tyler
vested
2005 emi 76330 – 76330 – 13100p 27012006 27012009 27012016
2005 23670 – 23670 – 13100p 27012006 27012009 27012016
2005 100000 – 100000 – 6950p 30012009 30012012 30012019
2008 184600 – 184600 – 200p 28012010 28012013 28012020
2008 175000 –– 175000 200p 27012011 27012014 27012021
unvested
saye 16586 –– 16586 9300p 01102011 01102016 01042017
2008 181000 –– 181000 200p 02022012 02022015 02022022
2008 – 126600 – 126600 200p 01022013 01022016 01022023
757186 126600 384600 499186
scheme interests awarded during the financial year
the table below sets out the options granted during 2012 and 2013
share price face value of 
exercise used to grant
date of grant scheme number price value grant £000
b d w stocks 2 february 2012 2008 260000 2p 1015p 264
1 february 2013 2008 181600 2p 152p 276
c p tyler 2 february 2012 2008 181000 2p 1015p 184
1 february 2013 2008 126600 2p 152p 192
for performance over the three year period 201416 the committee has decided that ben stocks will be awarded 110700
2 pence options and chris tyler will be awarded 77000 2 pence options under the 2008 scheme
the awards granted in 2012 and 2013 were calculated to equal approximately a year’s salary based on the share price at the
end of each financial year the award to be granted after the publication of these results will be calculated to equal a year’s salary
for each executive director based on the average share price over the final quarter of the financial year ended 30 november
2013 the 2008 scheme provides options issued at the nominal value of the company’s ordinary shares of 2 pence the face
value of the grant is determined by the year end share price in 2011 and 2012 and average share price over the final quarter of
the financial year ended 30 november 2013 for the 2014 award
performance conditions of the unvested share options
options granted in 2012 under the 2008 scheme can only be exercised in full if the committee is satisfied that in the financial
year ending 30 november 2014 “fy2014” the group has achieved eps of at least 14 pence 30 of the award will vest if the
group has achieved eps of 90 pence in fy2014 50 of the award will vest if the group has achieved eps of 110 pence in
fy2014 a sliding scale operates if the eps is between 90 pence and 110 pence and between 110 pence and 14 pence
no shares vest if the eps for fy2014 is below 90 pence
options granted in 2013 under the 2008 scheme can only be exercised in full if the committee is satisfied that in the financial
year ending 30 november 2015 “fy2015” the group has achieved eps of at least 155 pence 30 of the award will vest if
the group has achieved eps of 110 pence in fy2015 50 of the award will vest if the group has achieved eps of 125 pence
in fy2015 a sliding scale operates if the eps is between 110 pence and 125 pence and between 125 pence and 155 pence
no shares vest if the eps in fy2015 is below 110 pence
aremunreport p3746 tprf66104p01cln  03032014  1340  page 40 overview strategic 
report
governance financial
statements
other
information
41 porvair plc annual report  accounts 2013
the committee intends to grant options in 2014 after publication of these results under the 2008 scheme which can only be
exercised in full if the committee is satisfied that in the financial year ending 30 november 2016 “fy2016” the group has
achieved eps of at least 180 pence 30 of the award will vest if the group has achieved eps of 135 pence in fy2016 50
of the award will vest if the group has achieved eps of 150 pence in fy2016 a sliding scale will operate if the eps is between
135 pence and 150 pence and between 150 pence and 180 pence no shares vest if the eps in fy2016 is below 135 pence
the options granted under the saye scheme in 2011 were issued at a 20 discount to the market price at the date of grant
these options have no performance conditions
the table below sets out the options exercised during 2013
share price 
on date 
date of exercise scheme number exercise price of exercise
b d w stocks 16 april 2013 2005 emi 21800 131p 228p
16 april 2013 2005 100000 695p 228p
16 april 2013 2008 276900 2p 228p
25 june 2013 2005 emi 54530 131p 274p
25 june 2013 2005 123670 131p 274p
25 june 2013 2005 100000 695p 274p
676900
c p tyler 16 april 2013 2005 emi 15200 131p 228p
16 april 2013 2005 100000 695p 228p
16 april 2013 2008 184600 2p 228p
25 june 2013 2005 emi 61130 131p 274p
25 june 2013 2005 23670 131p 274p
384600
in 2013 options were exercised the executive directors’ total gain on the exercise of options was £20 million before deduction
of income tax and national insurance the executive directors sold only sufficient shares to fund the option acquisition costs and
the related income tax and national insurance costs the remaining shares were retained as a result of these option exercises
ben stocks and chris tyler’s holdings in shares in the company increased by 306700 shares and 187200 shares respectively
the executive directors did not exercise any share options in 2012
nonexecutive directors
the table below gives the salary and fees of the nonexecutive directors
                                                                                                                                                                                                                                                                                 basic salary
                                                                                                                                                                                                                                                                                       and fees
2013                                                                                                                                                                                                                                                                                     £000
p dean 31
m r b gatenby resigned on 16 april 2013 12
c l matthews 73
a j walker 31
147
                                                                                                                                                                                                                                                                                   basic salary
                                                                                                                                                                                                                                                                                         and fees
2012                                                                                                                                                                                                                                                                                      £000
p dean appointed 2 august 2012 10
m r b gatenby 30
c l matthews 72
a j walker 30
142
payments to directors leaving the group
no payments 2012 £nil were made during the year ended 30 november 2013 to any former director of the company or any
other group company
aremunreport p3746 tprf66104p01cln  03032014  1340  page 41 governance
remuneration report continued
42 porvair plc annual report  accounts 2013
performance graph and table
the following graph charts total shareholder return against the ftse smallcap index for the last three years given the size and
nature of the group the ftse smallcap index is the logical comparator index
the table below shows the total remuneration for the chief executive officer and the percentages of the maximum awards of
performance related pay received over the past five years
single ﬁgure total annual variable long term 
remuneration element incentives
year ceo £000  of max  of max
2013 b d w stocks 1169 97 100
2012 b d w stocks 927 93 92
2011 b d w stocks 518 100 100 
2010 b d w stocks 432 95 0
2009 b d w stocks 337 0 0
ben stocks received a basic salary increase of 20 2012 25 on 1 december 2013 this salary rise was the same as the
general salary rise awarded to all other uk employees the benefits and annual bonus limits for both ben stocks and all other
uk employees remained in line with the prior year except as adjusted by the underlying salary increase
relative importance of spend on pay
as required by the remuneration regulations the table below compares total staff remuneration with the amounts paid in
dividends to shareholders and the profit after tax of the group
statement of voting at the annual general meeting
a resolution to approve the report of the remuneration committee included in the 2012 report and accounts was passed by
the shareholders at the agm on 16 april 2013 9978 of votes were cast in favour of the resolution 022 of votes were cast
against the resolution and 16806 votes were withheld
advisers to the committee
during the year the committee has reviewed published surveys of the remuneration of directors of similar sized companies but
has not taken specific advice from remuneration consultants
the committee received input into its decision making from reports prepared by the executive directors none of whom were
present at any time when their own remuneration was being considered
— porvair plc — ftse smallcap index
3 year total shareholder return
dec 12
jun 12
jun 13
dec 10
dec 11
jun 11
dec 13
50
0
50
100
150
200
250
300
0
5000
10000
15000
20000
25000
30000
2012
2013
dividends total employee
remuneration
proﬁt after tax
relative spend on pay
£’000
aremunreport p3746 tprf66104p01cln  03032014  1340  page 42 overview strategic 
report
governance financial
statements
other
information
43 porvair plc annual report  accounts 2013
remuneration policy 
the committee’s remuneration policy will be subject to a vote at the annual general meeting in this forward looking section on
pages 43 to 46 we describe our remuneration policies and potential future outcomes for each executive director we also
describe our policy for rewarding nonexecutive directors
these policies and the individual elements of the reward package are reviewed each year to ensure that they remain in line with
good practice and support the delivery of the group’s strategy 
in formulating its policy the committee has given full consideration to the requirements of section d of the uk corporate
governance code and the remuneration regulations
the committee aims to provide remuneration packages that
• are competitive but not excessive and are designed to attract retain and motivate managers of high quality to deliver
growth for the business
• are aligned with shareholders’ interests and have a significant proportion of the potential remuneration linked to the short
and medium term performance of the business
• include an element of the potential reward linked to personal performance and
• encourage the executive directors to accumulate shares in the company
aremunreport p3746 tprf66104p01cln  03032014  1340  page 43 governance
remuneration report continued
44 porvair plc annual report  accounts 2013
the table below summarises the main components of the existing remuneration package for executive directors
the remuneration committee has set performance targets for the long term share plan based on stretching eps growth as it
believes that this provides a reliably measurable target in line with the group’s medium and long term objectives the committee
considers each year as part of its awards process whether this basis remains appropriate
estimate of the total future potential remuneration
the charts below set out estimates of the potential remuneration for each of the executive directors based on the current
remuneration packages the assumptions included in each scenario are described below 
• the porvair share price is assumed to remain constant at the average of the last quarter’s share price
 
remuneration 
component
strategic objective how the component 
operates
performance measures 
applicable
maximum and 
minimum payouts
base salary
• to attract and retain executives
of high quality
initial salaries on joining or appointment
to the role are set by reference to
• the level of skill and experience of the
individual
• the scope of responsibilities required
in the role
• market comparators for similar roles
in similar sized quoted businesses
salaries are reviewed annually and
ﬁxed for a twelve month period from
1 december each year the rate of
increase is inﬂuenced by
• the annual increase given to other 
uk employees
• the current rate of cpi inﬂation
• market comparators for similar roles
in similar sized quoted businesses
none • there are no maxima or minima 
in recent years base salary 
awards have been in line with 
uk staff averages
annual bonus • to encourage and reward actions
consistent with the near term
annual priorities of the group
• to motivate and incentivise
executive directors to deliver
performance in the current
ﬁnancial year
• performance targets are set with
reference to the group’ s annual
operating plan and strategic 
priorities for the year
• bonus payments include an element
based on the ﬁnancial performance
of the group in the year and an
element based on the delivery of
strategic targets
• the annual bonus is not pensionable
however at the executive directors’
discretion some or all of the bonus
may be sacriﬁced into a pension
scheme to which the group adds
8 of the amount sacriﬁced
• the bonus is paid after the
announcement of the group’ s 
annual results
• financial set by the committee in 
line with near term priorities for the
group – typically adjusted proﬁt
before tax or operating cash ﬂow
• strategic two or three strategic 
targets based on the requirements
of the group’ s annual or three year
operating plan
• the maximum bonus payable is
75 of salary 60 is based on
ﬁnancial performance measures 
and 15 is based on delivery of
strategic priorities the minimum
payout is nil
beneﬁts • to provide a competitive package
for executive directors
beneﬁts comprise
• a company car or allowance
• medical insurance and health
beneﬁts
• life insurance and spouse’s pension
• permanent health insurance
none na
long term share
plan and share 
options
• to motivate and incentivise
executive directors to deliver
sustained performance over 
the longer term in line with
shareholder interests
awards are made under the 
porvair long t erm share plan 
2008 to the executive directors 
the remuneration committee
determines
• the period of time over which
performance will be judged 
usually three years as suggested 
by schedule a of the uk corporate
governance code
• the number of shares to be awarded
• the performance criteria required
• stretching vesting criteria are set
based on achievement of goals set
out in the group’ s three year
strategic plan
• a sliding scale is typically used to
encourage excellent performance
• a typical grant has been options
over shares with the equivalent
value of one year’s base salary
pensions • to provide a competitive package
for executive directors
• the executive directors are
provided with a contribution to 
their retirement savings plans
• ben stocks is a member of the
closed porvair pension plan and his
beneﬁts up to a capped limit of
salary are provided by the plan
above the limit he receives a
contribution to his retirement
savings plan
none na
aremunreport p3746 tprf66104p01cln  03032014  1340  page 44 overview strategic 
report
governance financial
statements
other
information
45 porvair plc annual report  accounts 2013
fixed
• consists of base salary pension and benefits
• base salary is the current salary
• benefits are assumed to be in line with those received in 2013
• pensions are assumed to be in line with 2013
for performance in line with both the annual and three year operating plan
• annual bonus of 20 of salary
• long term share plan “ltsp” award of 50 of maximum
for performance significantly above both the annual and three year operating plan the maximum award is
• annual bonus of 75 of salary
• ltsp award of 100 of maximum
   
policy on nonexecutive directors
the nonexecutive directors receive letters of appointment with six month notice terms and are subject to annual reelection
in common with the executive directors in accordance with the best practice set out in the uk corporate governance code
published in september 2012 the executive directors review the nonexecutive directors’ annual fees with effect from 1 june
each year they receive a fixed annual fee which reflects their time commitment to the business and comparatives from similar
sized quoted companies they do not participate in any share option scheme bonus or pension arrangements
the current scale of remuneration is
                                                                                                                                                                                                                                                                                              £000
chairman 74
other nonexecutive directors 31
engagement with shareholders
the committee considers shareholder feedback received during the agm and any other shareholder meetings as part of its
annual review of its remuneration policy the chairman of the remuneration committee is available on request to discuss
issues of remuneration with shareholders of the group
where the committee proposes to introduce new long term incentive plans the committee seeks the views of major
shareholders prior to seeking general shareholder approval at a general meeting
there were no shareholder representations to the company in 2013 in respect of directors’ remuneration
relationship with employees pay 
all employees receive a salary pension and benefit package with levels of salary commensurate with their responsibilities
executives throughout the group participate in various bonus schemes designed to reward good performance in their
operations 
the committee takes into account proposed or agreed changes to employees’ pay and conditions as part of its review of the
remuneration of executive directors except in exceptional circumstances this results in the annual pay increases awarded to
executive directors being broadly in line with increases applied to other uk employees 
the committee maintains an overview of the remuneration policies throughout the group it seeks to ensure that employees are
paid a market rate for their particular roles and that there is consistency in targets set where performance related pay might be
awarded employees are not consulted in the process of setting the policy for executive directors’ remuneration
0
100
300
500
700
900
250 250 250
39
97
147
195
fixed on plan maximum
fixed
annual
ltsp
chris tyler
£’000
0
100
300
500
700
900
342 342
56
140
342
211
279
fixed on plan maximum
fixed
annual
ltsp
ben stocks
£’000
aremunreport p3746 tprf66104p01cln  03032014  1340  page 45 recruitment of directors
in the event that the company recruits a new director either from within the organisation or externally when determining
appropriate remuneration arrangements the committee will take into consideration all relevant factors including but not limited
to quantum the type of remuneration being offered and the candidates’ background to ensure that arrangements are in the
best interests of both the company and its shareholders without paying more than is necessary to recruit a director of the
required calibre the committee would generally seek to align the remuneration package offered with the remuneration policy
outlined in the tables on page 44 
in the first year of appointment the committee may offer additional remuneration arrangements that it considers appropriate and
necessary to recruit and retain the individual such remuneration may be made in the form of cash or share based awards which
may vest immediately or at a future point in time vesting may be subject to performance conditions selected by the committee
the committee may make awards on appointing a director to “buyout” remuneration arrangements forfeited on leaving a
previous employer in doing so the committee will take account of relevant factors including any performance conditions
attached to these awards the form in which they were granted eg cash or shares and the time over which they would have
vested generally buyout awards will be made on a comparable basis to those forfeited
in the event of recruitment the committee may also grant awards to a new director under listing rule 942 which allows for the
granting of awards specifically to facilitate in unusual circumstances the recruitment or retention of a director without seeking
prior shareholder approval
service contracts and policy in respect of payments for loss of office
the executive directors have rolling contracts with the company which can be terminated on giving twelve months’ notice
this is considered to be an appropriate balance between flexibility and commitment on both parties
payments for loss of office will be determined by the remuneration committee based on the contractual entitlements of the
director concerned under service contracts and the terms of the long term share plan the particular circumstances of the
director’s loss of office will determine whether mitigation of payments should apply and whether the payments that would
ordinarily be due under the discretionary annual bonus plan would be paid 
all employee share plans
the company also periodically offers invitations to uk employees to join save as you earn “saye” schemes currently 
there is a three year and five year scheme running following an invitation in october 2011 the executive directors are eligible to
join these schemes the nonexecutive directors are not the 2003 saye scheme has expired and a resolution will be put to
shareholders at the annual general meeting to introduce a new scheme the porvair plc saye share option scheme 2014 on
substantially the same terms as the previous scheme
governance
remuneration report continued
46 porvair plc annual report  accounts 2013
aremunreport p3746 tprf66104p01cln  03032014  1340  page 46 report on the group financial statements
our opinion
in our opinion the group financial statements
• give a true and fair view of the state of the group’s affairs as
at 30 november 2013 and of the group’s profit and cash
flows for the year then ended
• have been properly prepared in accordance with international
financial reporting standards ifrss as adopted by the
european union and
• have been prepared in accordance with the requirements of
the companies act 2006 and article 4 of the ias regulation
this opinion is to be read in the context of what we say below
what we have audited
the group financial statements which are prepared by
porvair plc comprise
• the consolidated balance sheet as at 30 november 2013
• the consolidated income statement and statement of
comprehensive income for the year then ended
• the consolidated statement of changes in equity and
statement of cash flows for the year then ended and
• the notes to the consolidated financial statements which
include a summary of significant accounting policies and
other explanatory information
the financial reporting framework that has been applied in
their preparation comprises applicable law and ifrss as
adopted by the european union
certain disclosures required by the financial reporting
framework have been presented elsewhere in the annual
report and accounts the “annual report” rather than in the
notes to the financial statements these are crossreferenced
from the financial statements and are identified as audited
what an audit of financial statements involves 
we conducted our audit in accordance with international
standards on auditing uk and ireland ‘isas uk  ireland’
an audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free
from material misstatement whether caused by fraud or error
this includes an assessment of
• whether the accounting policies are appropriate to the
group’s circumstances and have been consistently applied
and adequately disclosed
• the reasonableness of significant accounting estimates
made by the directors and 
• the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial
information in the annual report to identify material
inconsistencies with the audited group financial statements
and to identify any information that is apparently materially
incorrect based on or materially inconsistent with the
knowledge acquired by us in the course of performing 
the audit if we become aware of any apparent material
misstatements or inconsistencies we consider the 
implications for our report
overview of our audit approach
materiality
we set certain thresholds for materiality these helped 
us to determine the nature timing and extent of our audit
procedures and to evaluate the effect of misstatements 
both individually and on the financial statements as a whole
based on our professional judgement we determined
materiality for the group financial statements as a whole to 
be £370000 which represents approximately 5 of proﬁt
before tax
we agreed with the audit committee that we would report 
to them misstatements identified during our audit above
£18000 as well as misstatements below that amount that 
in our view warranted reporting for qualitative reasons
overview of the scope of our audit
the group is structured along two business lines being
microfiltration and metals filtration and has a number of
centralised functions the group financial statements are a
consolidation of 14 reporting units comprising the group’s
operating businesses within these business lines and the
centralised functions
in establishing the overall approach to the group audit we
determined the type of work that needed to be performed at
the reporting units by us as the group engagement team or
component auditors from other pwc network firms operating
under our instruction where the work was performed by
component auditors we determined the level of involvement
we needed to have in the audit work at those reporting units
to be able to conclude whether sufﬁcient appropriate audit
evidence had been obtained as a basis for our opinion on the
group ﬁnancial statements as a whole 
accordingly of the groups 14 reporting units we identified 7
which are based in the united kingdom and united states of
america and which in our view required an audit of their
complete financial information due to their size specific audit
procedures on certain balances and transactions were
performed at the further 7 reporting units including operations
in the united states of america germany and china this
together with additional procedures performed at the group
level gave us the evidence we needed for our opinion on the
group financial statements as a whole
areas of particular audit focus
in preparing the financial statements the directors made 
a number of subjective judgements for example in respect 
of significant accounting estimates that involved making
assumptions and considering future events that are inherently
uncertain we primarily focused our work in these areas 
by assessing the directors’ judgements against available
evidence forming our own judgements and evaluating 
the disclosures in the financial statements
in our audit we tested and examined information using
sampling and other auditing techniques to the extent we
considered necessary to provide a reasonable basis for us 
to draw conclusions we obtained audit evidence through
testing the effectiveness of controls substantive procedures
or a combination of both
financial statements
independent auditors’ report to the members of porvair plc
47 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
bauditorsgroup p4749 tplayout 1  03032014  1341  page 47 we considered the following areas to be those that required
particular focus in the current year this is not a complete list
of all risks or areas of focus identified by our audit we
discussed these areas of focus with the audit committee
their report on those matters that they considered to be
significant issues in relation to the financial statements is set
out on page 36
going concern
under the listing rules we are required to review the directors’
statement set out on page 30 in relation to going concern
we have nothing to report having performed our review
as noted in the directors’ statement the directors have
concluded that it is appropriate to prepare the group’s
financial statements using the going concern basis of
accounting the going concern basis presumes that the
group has adequate resources to remain in operation and
that the directors intend it to do so for at least one year from
the date the financial statements were signed as part of our
audit we have concluded that the directors’ use of the going
concern basis is appropriate
however because not all future events or conditions can be
predicted these statements are not a guarantee as to the
group’s ability to continue as a going concern
opinion on matter prescribed by the companies act 2006
in our opinion the information given in the strategic report
and the directors’ report for the financial year for which the
group financial statements are prepared is consistent with
the group financial statements
other matters on which we are required to 
report by exception 
adequacy of information and explanations received
under the companies act 2006 we are required to report to
you if in our opinion we have not received all the information
and explanations we require for our audit we have no
exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report if 
in our opinion certain disclosures of directors’ remuneration
specified by law have not been made and under the listing
rules we are required to review certain elements of the report
to shareholders by the board on directors’ remuneration we
have no exceptions to report arising from these responsibilities
corporate governance statement
under the listing rules we are required to review the 
part of the corporate governance statement relating to 
the company’s compliance with nine provisions of the uk
corporate governance code ‘the code’ we have 
nothing to report having performed our review
on page 32 of the annual report as required by the code
provision c11 the directors state that they consider the
annual report taken as a whole to be fair balanced and
understandable and provides the information necessary for
members to assess the group’s performance business
model and strategy on page 36 as required by c38 of the
code the audit committee has set out the significant issues
that it considered in relation to the financial statements and
how they were addressed under isas uk  ireland we are
required to report to you if in our opinion
• the statement given by the directors is materially
inconsistent with our knowledge of the group acquired in
the course of performing our audit or
• the section of the annual report describing the work of the
audit committee does not appropriately address matters
communicated by us to the audit committee
we have no exceptions to report arising from this responsibility
other information in the annual report
under isas uk  ireland we are required to report to you if 
in our opinion information in the annual report is
• materially inconsistent with the information in the audited
group financial statements or
• apparently materially incorrect based on or materially
inconsistent with our knowledge of the group acquired in 
the course of performing our audit or
• is otherwise misleading
we have no exceptions to report arising from this responsibility
areas of focus how the scope of our audit
addressed the area of focus
risk of fraud in revenue recognition
auditing standards require that we 
consider this
we focused on this area because of the
potential for misstatement of revenue due 
to the inherent complexities of revenue
recognition
we performed year end sales cut off testing
and we interrogated the accounting system 
to match revenue transactions with cash
receipts to gain assurance over the 
occurrence of revenue transactions
longterm contracts
we focused on this area because of the
judgements required in accounting for the 
long term contracts our focus was on the
judgements around the level of provisions 
for rework costs and other contractual 
provisions and the forecast costs to
complete the contracts refer to note 16 to
the ﬁnancial statements
we tested the reasonableness of the level 
of provisions included in the forecast costs 
against provisions required in similar such
contracts and we challenged management 
on the level of provisions
we tested the calculations of revenue
recognised on these contracts based on 
the work performed to date which we 
agreed to supporting documentation and 
the forecast costs to complete we agreed 
the forecast costs to complete to project 
plans and challenged management on the
preparation of these plans
risk of management override 
of internal controls 
auditing standards require that we 
consider this
we tested manual journal entries we
considered whether there was evidence 
of bias by the directors in the signiﬁcant
accounting estimates and judgements 
relevant to the ﬁnancial statements we also
assessed the overall control environment of 
the group including the arrangements for 
staff to “whistleblow” inappropriate actions
and discussed with senior management 
the possibilities for management override 
of controls
48 porvair plc annual report  accounts 2013
financial statements
independent auditors’ report to the members of porvair plc continued
bauditorsgroup p4749 tplayout 1  03032014  1341  page 48 49 porvair plc annual report  accounts 2013
responsibilities for the financial statements and the audit
our responsibilities and those of the directors
as explained more fully in the directors’ responsibilities
statement set out on pages 31 and 32 the directors are
responsible for the preparation of the group financial
statements and for being satisfied that they give a true 
and fair view
our responsibility is to audit and express an opinion on the
group ﬁnancial statements in accordance with applicable 
law and isas uk  ireland those standards require us to
comply with the auditing practices board’s ethical standards
for auditors
this report including the opinions has been prepared for
and only for the company’s members as a body in
accordance with chapter 3 of part 16 of the companies act
2006 and for no other purpose we do not in giving these
opinions accept or assume responsibility for any other
purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly
agreed by our prior consent in writing
other matter 
we have reported separately on the parent company
financial statements of porvair plc for the year ended
30 november 2013 and on the information in the 
remuneration report that is described as having
been audited
christopher maw senior statutory auditor 
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
cambridge
24 january 2014
overview strategic 
report
governance financial
statements
other
information
bauditorsgroup p4749 tplayout 1  03032014  1341  page 49 financial statements
consolidated income statement
50 porvair plc annual report  accounts 2013
2013 2012
for the year ended 30 november note £’000 £’000
continuing operations
revenue 2 84267 76455 
cost of sales 55519 51231
gross profit 28748 25224 
distribution costs 968 990
administrative expenses 19139 17029
operating profit 2 8641 7205 
interest payable and similar charges 5 793 906
profit before income tax 23 7848 6299 
income tax expense 6 2367 2017
profit for the year attributable to shareholders 23 5481 4282 
earnings per share basic 7 127p 101p
earnings per share diluted 7 125p 99p
consolidated statement of comprehensive income
2013 2012
for the year ended 30 november note £’000 £’000
profit for the year 5481 4282
other comprehensive incomeexpense
items that will not be reclassified to profit or loss
actuarial losses in deﬁned beneﬁt pension plans net of tax 23 3079 635
items that may be subsequently reclassified to profit or loss
exchange differences on translation of foreign subsidiaries 23 921 271
changes in fair value of interest rate swaps held as a cash ﬂow hedge 23 79 81 
changes in fair value of foreign exchange contracts held as a cash ﬂow hedge 23 932 – 
90 190
other comprehensive expense for the year net of tax 2989 825
total comprehensive income for the year attributable to 
shareholders of porvair plc 2492 3457 
cfinancstatements p5053 tprf66104p01cln  03032014  1342  page 50 overview strategic 
report
governance financial
statements
other
information
51 porvair plc annual report  accounts 2013
company registered number 01661935
2013 2012
as at 30 november note £’000 £’000
noncurrent assets
property plant and equipment 9 9006 8641 
goodwill and other intangible assets 10 42535 39983 
deferred tax asset 18 2440 1996 
derivative ﬁnancial instruments 11 144 – 
54125 50620 
current assets
inventories 12 11617 10258 
trade and other receivables 13 13978 11911 
derivative ﬁnancial instruments 11 1027 67 
cash and cash equivalents 14 6773 7275 
33395 29511 
current liabilities
trade and other payables 15 19472 14228
current tax liabilities 995 875
borrowings 17 983 1000
derivative ﬁnancial instruments 11 20 99
21470 16202
net current assets 11925 13309 
noncurrent liabilities
borrowings 17 5211 10145
retirement beneﬁt obligations 19 11875 8494
other payables 25 1159 – 
provisions for other liabilities and charges 20 125 116
18370 18755
net assets 47680 45174 
capital and reserves
share capital 21 875 852 
share premium account 21 35147 34511 
cumulative translation reserve 23 309 612 
retained earnings 23 11967 9199 
total equity 47680 45174 
the financial statements on pages 50 to 82 were approved by the board of directors on 24 january 2014 and were signed on
its behalf by
b d w stocks
c p tyler
financial statements
consolidated balance sheet
cfinancstatements p5053 tprf66104p01cln  03032014  1342  page 51 financial statements
consolidated cash flow statement
52 porvair plc annual report  accounts 2013
2013 2012
for the year ended 30 november note £’000 £’000
cash flows from operating activities
cash generated from operations 24 12265 9163 
interest paid 417 518
tax paid 2104 1238
net cash generated from operating activities 9744 7407 
cash flows from investing activities
acquisition of subsidiaries net of cash acquired 25 3324 3329
purchase of property plant and equipment 9 1831 1780
purchase of intangible assets 10 193 171
proceeds from sale of property plant and equipment 481 23 
net cash used in investing activities 4867 5257
cash flows from financing activities
proceeds from issue of ordinary share capital 21 659 41 
repayment ofincrease in borrowings 4850 1071 
dividends paid to shareholders 8 1175 1023
capital element of ﬁnance leases – 6
net cash used ingenerated from financing activities 5366 83 
net decreaseincrease in cash and cash equivalents 489 2233 
effects of exchange rate changes 13 69
502 2164 
cash and cash equivalents at 1 december 7275 5111 
cash and cash equivalents at 30 november 14 6773 7275 
reconciliation of net cash flow to movement in net cashdebt
2013 2012
£’000 £’000
net decreaseincrease in cash and cash equivalents 489 2233 
effects of exchange rate changes 88 53 
repayment ofincrease in borrowings 4850 1071
repayment of ﬁnance leases – 6 
net debt at 1 december 3870 5091
net cashdebt at 30 november 579 3870
cfinancstatements p5053 tprf66104p01cln  03032014  1342  page 52 overview strategic 
report
governance financial
statements
other
information
53 porvair plc annual report  accounts 2013
share  cumulative  
share premium translation retained total
capital account reserve earnings equity
note £’000 £’000 £’000 £’000 £’000
balance at 1 december 2011 851 34471 883 5886 42091 
proﬁt for the year ––– 4282 4282 
other comprehensive expenseincome
exchange differences on translation of foreign subsidiaries 23 – – 271 – 271
changes in fair value of interest rate swaps held as a cash ﬂow hedge 23 – – – 81 81 
actuarial losses in deﬁned beneﬁt pension plans net of tax – – – 635 635
total comprehensive expenseincome for the year – – 271 3728 3457 
transactions with owners
employee share options scheme
– value of employee services net of tax – – – 608 608 
proceeds from shares issued 21 1 40 – – 41 
dividends approved or paid 8 – – – 1023 1023
balance at 30 november 2012 852 34511 612 9199 45174 
balance at 1 december 2012 852 34511 612 9199 45174 
proﬁt for the year – – – 5481 5481 
other comprehensive expenseincome
exchange differences on translation of foreign subsidiaries 23 – – 921 – 921
changes in fair value of interest rate swaps held as a cash ﬂow hedge 23 – – – 79 79 
changes in fair value of foreign exchange contracts held 
as a cash ﬂow hedge 23 – – – 932 932 
actuarial losses in deﬁned beneﬁt pension plans net of tax – – – 3079 3079
total comprehensive expenseincome for the year – – 921 3413 2492 
transactions with owners
employee share options scheme
– value of employee services net of tax – – – 530 530 
proceeds from shares issued 21 23 636 – – 659 
dividends approved or paid 8 – – – 1175 1175
balance at 30 november 2013 875 35147 309 11967 47680
financial statements
consolidated statement of changes in equity
cfinancstatements p5053 tprf66104p01cln  03032014  1342  page 53 financial statements
notes to the consolidated financial statements
54 porvair plc annual report  accounts 2013
1 summary of signiﬁcant accounting policies 
porvair plc is a public limited company registered and domiciled in the uk and listed on the london stock exchange 
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below
these policies have been consistently applied to all the years presented unless otherwise stated 
basis of preparation
the consolidated financial statements of the group have been prepared in accordance with international financial reporting
standards ifrss as endorsed by the european union the ifrs interpretations committee formerly the international
financial reporting interpretations committee ifric interpretations and those parts of the companies act 2006 applicable
to companies reporting under ifrs the company has elected to prepare its entity accounts in accordance with united
kingdom generally accepted accounting practice “uk gaap” and these are presented on pages 85 to 91
the financial statements have been prepared on a going concern basis and under the historical cost convention as modified
by the recognition of financial assets and financial liabilities including derivative financial instruments at fair value through
profit or loss 
basis of consolidation
the group applies the acquisition method to account for business combinations the consolidated financial statements
incorporate the financial statements of the company and entities controlled by the company its subsidiaries made up to
30 november each year control is achieved where the company has the power to govern the financial and operating policies
of an investee entity so as to obtain benefits from its activities
on acquisition the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of
acquisition any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as
goodwill acquisition related costs are expensed as incurred 
the results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from
the effective date of acquisition or up to the effective date of disposal as appropriate where necessary adjustments are
made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group
any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date subsequent
changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance
with ias 39 either in profit or loss or as a change to other comprehensive income contingent consideration that is classified
as equity is not remeasured and its subsequent settlement is accounted for within equity
all intragroup transactions balances income and expenditures are eliminated on consolidation
use of assumptions and estimates
the preparation of the consolidated financial statements requires management to make judgements estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities income and expenses 
the estimates and associated assumptions are based on historical experience and various other factors that are believed 
to be reasonable under the circumstances including management’s best knowledge of the amount event or actions 
the results form the basis of making judgements about carrying values of assets and liabilities that are not readily 
apparent from other sources actual results may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are
recognised in the period in which the estimate is revised
material estimates and assumptions are made in particular with regard to establishing uniform depreciation and amortisation
periods for the group goodwill and intangible assets valuation cash flows and discount rate impairment testing
assumptions used in the calculation of share based payments parameters for measuring pension and other provisions and
the likelihood that tax assets can be realised
the group applies the percentage of completion method in accounting for its construction contracts use of the percentage
of completion method requires the group to estimate the construction performed to date as a proportion of the total
construction to be performed estimating the costs to complete is considered to be a material estimate
the group tests annually whether goodwill has suffered any impairment the recoverable amounts of cashgenerating units
have been determined based on valueinuse calculations these calculations require the use of estimates note 10
goodwill
goodwill arising on consolidation represents the excess of the cost of acquisition over the group’s interest in the fair value of
the identifiable assets and liabilities of a subsidiary at the date of acquisition the cost of acquisition includes the fair value of
deferred and contingent consideration
goodwill is recognised as an asset at cost less accumulated impairment losses and reviewed for impairment annually and
more frequently if events or changes in circumstances indicate potential impairment any impairment is recognised
immediately in the income statement and is not subsequently reversed
for the purpose of impairment testing goodwill acquired in a business combination is allocated to each of the cash
generating units that is expected to benefit from the synergies of the combination
on disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on
disposal
goodwill arising on acquisitions before the date of transition to ifrss has been retained at the previous uk gaap amounts
subject to being tested for impairment since that date
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 54 55 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
1 summary of signiﬁcant accounting policies continued
revenue recognition excluding construction contracts
revenue comprises the invoiced value of goods and services supplied net of value added tax and other sales taxes revenue
is recognised when goods are despatched to the customer at which point the risks and rewards of ownership are transferred
revenue from service contracts is recognised on a straightline basis over the contract period
interest income is accrued on a straightline basis by reference to the principal outstanding and the effective interest rate
applicable which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to that asset’s net carrying amount
construction contracts
where the outcome of a construction contract can be estimated reliably revenue and costs are recognised by reference to
the stage of completion of the contract activity at the balance sheet date this is normally measured by the proportion that
contract costs incurred for work performed to date bear to the estimated total contract costs except where this would not 
be representative of the stage of completion variations in contract work claims and incentive payments are included to the
extent that the amount can be measured reliably and its receipt is considered probable contract costs include costs directly
related to the specific contract and indirect costs attributable to the contract
where the outcome of a construction contract cannot be estimated reliably contract revenue is recognised to the extent of
contract costs incurred where it is probable they will be recoverable contract costs are recognised as expenses in the period
in which they are incurred
when it is probable that total contract costs will exceed total revenue the expected loss is recognised as an expense
immediately
leasing
leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee all other leases are classified as operating leases finance lease payments are allocated between the
liability and finance charges so as to achieve a constant rate on the finance balance outstanding the rental obligations net of
finance charges are included in current and noncurrent liabilities the interest element of the finance cost is charged to the
income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period
rentals payable under operating leases are charged to the income statement on a straightline basis over the term of the
relevant lease
foreign currencies
the consolidated financial statements are presented in pounds sterling which is the company’s functional and presentation
currency the group determines the functional currency of each entity based on the primary economic environment in which
the entity operates and items included in the financial statements of each entity are measured using that functional currency
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions or valuation where items are remeasured at each balance sheet date monetary assets and liabilities that
are denominated in foreign currencies are retranslated at the rates prevailing on the balance sheet date foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation at yearend exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except when
deferred in other comprehensive income as qualifying cash flow hedges
on consolidation the assets and liabilities of the group’s overseas operations borrowings and other currency instruments are
translated at exchange rates prevailing on the balance sheet date income and expense items are translated at the average
exchange rates for the period unless exchange rates fluctuate significantly exchange differences arising if any are classified
as other comprehensive income and transferred to the group’s translation reserve 
goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the closing rate
borrowing costs
all borrowing costs are typically recognised in the income statement in the period in which they are incurred with the
exception of borrowing costs incurred on the arrangement of new facilities which are capitalised and subsequently recognised
in the income statement over the period of the borrowings
government grants
government grants for the development of new products are recognised over the periods necessary to match them with the
related costs and are deducted in reporting the related expense
retirement benefit costs
payments to defined contribution retirement benefit schemes are charged as an expense as they fall due 
for defined benefit retirement schemes the cost of providing benefits is determined using the projected unit credit method
with actuarial valuations being carried out at each balance sheet date actuarial gains and losses are recognised in full in the
period in which they occur they are recognised in the consolidated statement of comprehensive income
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 55 financial statements
notes to the consolidated financial statements continued
56 porvair plc annual report  accounts 2013
1 summary of signiﬁcant accounting policies continued
the retirement benefit obligation in the balance sheet represents the present value of the defined benefit obligation as
adjusted for unrecognised past service cost and as reduced by the fair value of scheme assets 
taxation
the tax expense represents the sum of the current tax and deferred tax
current tax is based on taxable profit for the period taxable profit differs from net profit as reported in the income statement
because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items
that are never taxable or deductible the group’s liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the balance sheet date
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets 
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is
accounted for using the balance sheet liability method deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised such assets and liabilities are not recognised if the
temporary difference arises from goodwill or from the initial recognition other than a business combination of other assets
and liabilities in a transaction that affects neither the tax profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates
except where the group is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates which have been enacted or substantively enacted by the balance sheet date 
and are expected to apply in the period when the liability is settled or the asset is realised deferred tax is recognised in the
income statement except when it relates to items recognised directly to other comprehensive income or directly to equity 
in this case the deferred tax is also recognised in other comprehensive income or directly in equity respectively
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to
settle its current tax assets and liabilities on a net basis
property plant and equipment
property plant and equipment for use in the production or supply of goods or services or for administrative purposes are
stated in the balance sheet at their cost less any subsequent accumulated depreciation and subsequent accumulated
impairment losses 
property plant and equipment in the course of construction for production or administrative purposes are carried at cost less
any recognised impairment loss cost includes professional fees and for qualifying assets borrowing costs capitalised in
accordance with the group’s accounting policy depreciation for these assets on the same basis as other assets
commences when the assets are ready for their intended use
depreciation is charged so as to write off the cost of assets other than assets under construction over their estimated useful
lives using the straight line method on the following bases
buildings                                                25 – 3
plant machinery and equipment            10 – 33
freehold land is not depreciated
assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or
where shorter over the term of the relevant lease
the gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds
and the carrying amount of the assets and is recognised in the income statement
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 56 57 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
1 summary of signiﬁcant accounting policies continued
internally generated intangible assets – research and development expenditure
expenditure on research activities is recognised as an expense in the period in which it is incurred
an internally generated intangible asset arising from the group’s product development expenditure is recognised only if all of
the following criteria are demonstrable
• the technical feasibility of completing the intangible asset so that it will be available for use or sale
• the intention to complete the intangible asset and use or sell it
• the ability to use the intangible asset or to sell it 
• the way in which the intangible asset will generate probable future economic benefits
• the availability of adequate technical financial and other resources to complete the development and to use or sell the
intangible asset and  
• the ability to measure reliably the expenditure attributable to the intangible asset during its development 
internally generated intangible assets are valued at cost and held at cost less accumulated amortisation and impairment
losses which is recognised as an expense on a straight line basis over their estimated useful lives useful life is determined
with reference to estimated product life in the industry in which the expenditure has been incurred useful life of the group’s
development expenditure is currently between 3 and 10 years amortisation of development expenditure commences when
development has been completed to management satisfaction and the related project is ready for its intended use where no
internally generated intangible asset can be recognised development expenditure is recognised as an expense in the period
in which it is incurred
patents trademarks and knowhow
patents trademarks and knowhow purchased as part of an acquisition where there are expected future economic benefits
are initially measured at fair value and amortised over their estimated useful lives of 35 years
software
software costs are classified as intangible fixed assets and measured initially at purchase cost amortisation is charged on a
straight line basis over their estimated useful lives of 35 years
impairment of property plant and equipment and intangible assets 
the group reviews annually the carrying amounts of its property plant and equipment and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss if any such indication exists the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss if any for the purposes
of assessing impairment assets are grouped at the lowest levels for which there are separately identifiable cash flows cash
generating units
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated
future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted if the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount the
carrying amount of the asset or cash generating unit is reduced to its recoverable amount an impairment loss is recognised
as an expense immediately
when an impairment loss subsequently reverses the carrying amount of the asset or cash generating unit other than
goodwill is increased to the revised estimate of its recoverable amount but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or cash
generating unit in prior years a reversal of an impairment loss is recognised in the income statement immediately
inventories
inventories are stated at the lower of cost and net realisable value cost comprises direct materials and where applicable
direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and
condition cost is calculated using the weighted average method net realisable value represents the estimated selling price
less all estimated costs of completion and costs to be incurred in marketing selling and distribution where necessary
provision is made for obsolete slow moving and defective inventories
loans and receivables
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active
market they are included in current assets except for those with maturities greater than 12 months after the balance sheet
date these are classified as noncurrent assets loans are classified as “other receivables” in the balance sheet
trade receivables
trade receivables are recognised initially at fair value and subsequently held at amortised cost a provision for impairment 
of trade receivables is established when there is objective evidence that the group will not be able to collect all amounts 
due according to the original terms of receivables significant financial difficulties of the debtor and default or delinquency 
in payments when credit control procedures have been applied are indicators an impairment may be required the amount 
of the provision is the difference between the asset’s carrying amount and the present value of the estimated future cash
flows discounted at the effective interest rate the amount of the provision is recognised in the income statement within
administrative expenses when a trade receivable is uncollectible it is written off to the provision for impairment subsequent
recoveries of amounts previously written off are credited against administrative expenses in the income statement
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 57 financial statements
notes to the consolidated financial statements continued
58 porvair plc annual report  accounts 2013
1 summary of signiﬁcant accounting policies continued
cash and cash equivalents
in the consolidated statement of cash flows cash and cash equivalents includes cash in hand deposits held at call with
banks other shortterm highly liquid investments with original maturities of three months or less and bank overdrafts in the
consolidated balance sheet bank overdrafts are shown within borrowings in current liabilities
bank borrowings
interest bearing bank loans and overdrafts are recorded at the proceeds received net of direct issue costs finance charges
including premiums payable on settlement or redemption and direct issue costs are accounted for on an accruals basis in the
income statement using the effective interest method and are added to the carrying amount of the instrument to the extent
that they are not settled in the period in which they arise
trade payables
trade payables are not interest bearing and are initially recognised at fair value and subsequently held at amortised cost
equity instruments
ordinary shares are classified as equity equity instruments issued by the company are recorded at the proceeds received
net of direct issue costs
derivative financial instruments and hedge accounting
the group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates 
the group uses foreign exchange forward contracts and interest rate swap agreements to hedge these exposures the
group does not use derivative financial instruments for speculative purposes
the use of financial derivatives is governed by the group’s policies approved by the board of directors which provides written
principles on the use of financial derivatives
derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured at their fair value the method of recognising the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument and if so the nature of the item being hedged the group designates certain derivatives
as cash flow hedges
for cash flow hedges the group documents at the inception of the transaction the relationship between hedging instruments
and hedged items as well as its risk management objectives and strategy for undertaking various hedging transactions the
group also documents its assessment both at hedge inception and on an ongoing basis of whether the derivatives that are
used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items 
the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in equity the gain or loss relating to the ineffective portion is recognised immediately in the income statement
amounts accumulated in equity are recycled in the income statement in the periods when the hedged item affects profit or
loss for example when the forecast sale that is hedged takes place the gain or loss relating to the effective portion of
interest rate swaps hedging variable rate borrowings is recognised in the income statement
when a hedging instrument expires or is sold or when a hedge no longer meets the criteria for hedge accounting any
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is
ultimately recognised in the income statement when a forecast transaction is no longer expected to occur the cumulative
gain or loss that was reported in equity is immediately transferred to the income statement
changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the
income statement as they arise
derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value
with unrealised gains or losses reported in the income statement
provisions
provisions have been made for future dilapidation costs on leased property these provisions are the directors’ best estimates
as the actual costs and timing of future cash flows are dependent on future events any difference between expectations and
the actual future liability will be accounted for in the period when such determination is made
where the impact of discounting is material the group discounts at its weighted average cost of capital unless some other
rate is more appropriate in the circumstances
share based payments
the group has applied the requirements of ifrs 2 “share based payment” in accordance with the transitional provisions
ifrs 2 has been applied to all grants of equity instruments after 7 november 2002 that were unvested as of 1 january 2005
the group issues equity settled share based payments to certain employees equity settled share based payments are
measured at fair value at the date of grant the fair value determined at the grant date of the equity settled share based
payments is expensed on a straight line basis over the vesting period based on the group’s estimate of shares that will
eventually vest the charge is then credited back to reserves
nonmarket performance and service conditions are included in assumptions about the number of options that are expected
to vest 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 58 59 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
1 summary of signiﬁcant accounting policies continued
at each balance sheet date the group revises its estimates of the number of options that are expected to vest it recognises
the impact of the revision to original estimates if any in the income statement with a corresponding adjustment to equity
fair value is measured by use of a blackscholes model the expected life used in the model has been adjusted based on
management’s best estimate for the effects of nontransferability exercise restrictions and behavioural considerations
exceptional items
the group presents certain items as “exceptional” these are material items which derive from events or transactions that fall
within the group’s ordinary activities and which by virtue of their size nature or incidence need to be separately disclosed to
enable an understanding of the group’s underlying financial performance examples of items include but are not limited to
acquisition costs disposals or restructuring of a significant part of an operating segment impairment events and litigation
claims by or against the group
segment reporting
an operating segment is a component of an entity that engages in business activities from which it may earn revenues and
incur expenses including revenues and expenses relating to transactions with other components of the same entity an
operating segment’s operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions
about resources to be allocated to the segment and assess its performance and for which discrete financial information is
available operating segments are aggregated into reporting segments where they share similar economic characteristics 
as a result of the nature of the products sold or the services provided the production processes used to manufacture the
products the type of customer for the products and services and the methods used to distribute the products or provide 
the services
dividend distribution
dividend distribution to the company’s shareholders is recognised as a liability in the group’s financial statements in the
period in which the dividends are approved by the company’s shareholders
new standards amendments and interpretations
a standards amendments and interpretations effective for the first time in the year ended 30 november 2013
• amendment to ias 12 ‘income taxes’ on deferred tax and
• amendment to ias 1 ‘financial statement presentation’ regarding other comprehensive income
none of these have had any impact on the reported results of the group
b standards amendments and interpretations that are not yet effective and have not been early adopted
• amendment to ias 19 ‘employee benefits’
• amendment to ifrs 1 ‘first time adoption’ on government loans
• amendment to ifrs 7 ‘financial instruments disclosures’ on asset and liability offsetting
• amendment to ifrss 10 11 and 12 on transition guidance
• annual improvements 2011
• ifrs 10 ‘consolidated financial statements’
• ifrs 11 ‘joint arrangements’
• ifrs 12 ‘disclosures of interests in other entities’
• ifrs 13 ‘fair value measurement’
• ias 27 revised 2011 ‘separate financial statements’
• ias 28 revised 2011 ‘associates and joint ventures’
• ifric 20 ‘stripping costs in the production phase of a surface mine’
• amendment to ias 32 ‘financial instruments presentation’ on asset and liability offsetting
• amendments to ifrss 10 and 12 and ias 27 on consolidation for investment entities
• amendment to ias 36 ‘impairment of assets’ on recoverable amount disclosures
• amendment to ias 39 ‘financial instruments recognition and measurement’ on novation of derivatives
• ifric 21 ‘levies’ and
• ifrs 9 ‘financial instruments’
the directors do not anticipate that the adoption of these standards amendments and interpretations where relevant in future
periods will have a material impact on the group’s financial statements other than the adoption of ias 19 ‘employee benefits’
ias 19 ‘employee benefits’ was amended in june 2011 and is effective for periods beginning on or after 1 january 2013 the
impact will be as follows to immediately recognise all past service costs and to replace interest cost and expected return on
plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability the
group has calculated that if ias 19 revised 2011 had been adopted early for the year ended 30 november 2013 it would
have resulted in an additional charge of £210000
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 59 financial statements
notes to the consolidated financial statements continued
2 segment information
the chief operating decision maker has been identified as the board of directors the board of directors review the group’s
internal reporting in order to assess performance and allocate resources management have determined the operating
segments based on this reporting
at 30 november 2013 the group is organised on a worldwide basis into two operating segments
1 metals filtration – serving the global aluminium nafta iron foundry and superalloys markets and
2 microfiltration – serving the aviation environmental laboratory and energy and industrial markets
other group operations’ costs assets and liabilities are included in “other unallocated” costs mainly comprise group
corporate costs and include new business development costs some research and development costs and general financial
costs and assets and liabilities mainly comprise group retirement obligations tax assets and liabilities cash and borrowings
the segment results for the year ended 30 november 2013 are as follows
metals other 
filtration microﬁltration unallocated group
30 november 2013 note £’000 £’000 £’000 £’000
revenue 28484 55783 – 84267
operating profitloss 2391 8632 2382 8641
net ﬁnance costs 5 – – 793 793
profitloss before income tax 2391 8632 3175 7848
income tax expense – – 2367 2367
profitloss for the year 2391 8632 5542 5481
the segment results for the year ended 30 november 2012 are as follows
metals other 
filtration microﬁltration unallocated group
30 november 2012 note £’000 £’000 £’000 £’000
revenue 27977 48478 – 76455 
operating proﬁtloss 2383 6688 1866 7205 
net ﬁnance costs 5 – – 906 906
proﬁtloss before income tax 2383 6688 2772 6299 
income tax expense – – 2017 2017
proﬁtloss for the year 2383 6688 4789 4282 
60 porvair plc annual report  accounts 2013
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 60 61 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
2 segment information continued
other segment items included in the income statement are as follows
metals other 
filtration microﬁltration unallocated group
30 november 2013 note £’000 £’000 £’000 £’000
depreciation and amortisation property plant and equipment 
and intangible assets 910 732 1147 – 1879
metals other 
filtration microﬁltration unallocated group
30 november 2012 note £’000 £’000 £’000 £’000
depreciation and amortisation property plant and equipment 
and intangible assets 910 681 981 – 1662
the segment assets and liabilities at 30 november 2013 are as follows
metals other 
filtration microﬁltration unallocated group
30 november 2013 note £’000 £’000 £’000 £’000
segmental assets 24623 51606 4518 80747
cash and cash equivalents 14 – – 6773 6773
total assets 24623 51606 11291 87520
segmental liabilities 3360 15459 2952 21771
retirement beneﬁt obligations 19 – – 11875 11875
borrowings 17 – – 6194 6194
total liabilities 3360 15459 21021 39840
the segment assets and liabilities at 30 november 2012 are as follows
metals other 
filtration microﬁltration unallocated group
30 november 2012 note £’000 £’000 £’000 £’000
segmental assets 24362 45285 3209 72856 
cash and cash equivalents 14 – – 7275 7275 
total assets 24362 45285 10484 80131 
segmental liabilities 3102 10059 2157 15318
retirement beneﬁt obligations 19 – – 8494 8494
borrowings 17 – – 11145 11145
total liabilities 3102 10059 21796 34957
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 61 financial statements
notes to the consolidated financial statements continued
62 porvair plc annual report  accounts 2013
2 segment information continued
geographical analysis 
2013 2012
by by
destination by origin destination by origin
revenue £’000 £’000 £’000 £’000
united kingdom 17772 36943 14250 34877 
continental europe 11187 6658 11506 6749 
united states of america 33324 39214 30963 33350 
other nafta 3479 – 2846 – 
south america 1709 – 1904 – 
asia 14342 1452 12440 1479 
australasia 1141 – 1048 – 
africa 1313 – 1498 – 
84267 84267 76455 76455 
2013 2012
noncurrent assets £’000 £’000
united kingdom 19059 19389 
continental europe 3389 3402 
americas 28466 25489 
asia 771 344 
unallocated deferred tax 2440 1996 
54125 50620 
2013 2012
capital expenditure including intangibles £’000 £’000
united kingdom 695 1038 
continental europe 48 98 
americas 736 677 
asia 545 138 
2024 1951 
no single customer represents 10 or more of the group’s revenue in 2013 and 2012
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 62 63 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
3 proﬁt before income tax
the following items have been included in arriving at profit before income tax
2013 2012
£’000 £’000
staff costs 25785 23257
inventories – cost of inventories recognised as an expense included in cost of sales 30901 28900
net realised foreign exchange gains 251 301
depreciation on property plant and equipment – owned 1427 1329
amortisation of intangible assets 452 333
proﬁt on sale of property plant and equipment and intangible assets 66 1
other operating lease rentals payable
– plant and machinery 246 236
– property 1154 1127
repairs and maintenance on property plant and equipment 1375 1589
trade receivables impairment 66 189
research and development expenditure 3178 3122
services provided by the group’s auditors and network firms
during the year the group including its overseas subsidiaries obtained the following services 
from the company’s auditors and associates at costs as detailed below
fees payable to company’s auditors and its associates for audit of parent company 
and consolidated ﬁnancial statements 51 51
fees payable to company’s auditors and its associates for other services
the audit of company’s subsidiaries 79 79
auditrelated assurance services 17 17
tax services – compliance 50 64
tax services – advisory 18 33
other nonaudit services 2 – 
217 244
2013 2012
£’000 £’000
fees in respect of the porvair plc pension and death beneﬁt plan audit 13 13 
4 employee beneﬁt expense
the average monthly number of staff including executive directors employed during the year is detailed below
2013 2012
average average
number number
number
metals filtration 169 160 
microﬁltration 435 396 
head ofﬁce 7 7 
611 563 
north american employees included above 212 168 
2013 2012
£’000 £’000
staff costs
wages and salaries 20785 19127 
social security costs 3431 2831 
other pension costs 1114 919 
share based payments 455 380 
25785 23257 
detailed disclosures of directors’ emoluments and interests in share options are shown in the remuneration report on pages
37 to 46 the directors comprise the key management and their remuneration is disclosed in note 29
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 63 financial statements
notes to the consolidated financial statements continued
64 porvair plc annual report  accounts 2013
5 finance income and costs
2013 2012
note £’000 £’000
interest payable on bank loans and overdrafts 404 496 
interest payable on ﬁnance leases – 1 
unwinding of discount on provisions 20 9 9 
pension scheme ﬁnance expense 19 380 400 
793 906 
6 income tax expense
2013 2012
note £’000 £’000
current tax
uk corporation tax 781 731 
adjustment in respect of prior periods 131 169 
overseas tax 1587 900 
2237 1800 
deferred tax
origination and reversal of temporary differences – uk 28 261
origination and reversal of temporary differences – overseas 46 473 
adjustment in respect of prior periods 116 – 
effect of change in deferred tax rates 4 5 
18 130 217 
2367 2017 
the tax on the group’s profit before tax differs from the theoretical amount that would arise using the uk tax rate applicable to
profits of the consolidated companies as follows
2013 2012
£’000 £’000
proﬁt before tax 7848 6299 
tax at the uk corporation tax rate of 2333 2012 2467 1831 1554 
current tax adjustments in respect of prior periods 131 169 
deferred tax adjustments in respect of previous periods 116 – 
deferred tax on share based payments within the income statement 105 94
tax effect of expenses not deductible in determining taxable proﬁt 181 32
tax effect of utilisation of previously unrecognised tax losses 19 – 
effect of change in deferred tax rates 4 5 
effect of different tax rates of subsidiaries operating in other jurisdictions 498 415 
tax charge 2367 2017 
in addition to the amount charged to the income statement the following tax was credited direct to equitycomprehensive
income
2013 2012
£’000 £’000
deferred tax on share based payments direct to equity 75 228
deferred tax on actuarial losses on the pension fund direct to comprehensive income 471 565
546 793
the standard rate of corporation tax in the uk changed from 24 to 23 with effect from 1 april 2013 accordingly the
theoretical effective tax rate applied to the group’s profits for this accounting period is 2333 the standard rate of
corporation tax in the uk will fall in future periods and as a result the group’s theoretical future effective tax rate will be
between 20 and 23
during the year as a result of the change in uk corporation tax rates which were effective from 1 april 2013 deferred tax
balances have been remeasured deferred tax relating to temporary differences which are expected to reverse prior to 1 april
2014 is measured at 23 deferred tax relating to temporary differences expected to reverse after 1 april 2014 is measured at
the tax rate of 21 and deferred tax relating to temporary differences expected to reverse after 1 april 2015 is measured at
the tax rate of 20 as these are the enacted rates that will apply on reversal
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 64 65 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
7 earnings per share
2013 2012
weighted weighted
average per share average per share
earnings number of amount earnings number of amount
£’000 shares pence £’000 shares pence
basic eps
earnings attributable to ordinary shareholders 5481 43254346 127 4282 42601240 101
effect of dilutive securities
earnings attributable to ordinary shareholders 5481 – 127 4282 – 101
dilutive impact of share options – 661024 02 – 777195 02
diluted eps 5481 43915370 125 4282 43378435 99
8 dividends per share
                                                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                             
                                                                                                                                                                                                  per share                               per share
                                                                                                                                                                                                       pence             £’000             pence £’000
final dividend paid – in respect of prior year 160 694 140 597 
interim dividend paid – in respect of current year 110 481 100 426 
270 1175 240 1023 
the directors recommend a final dividend of 18 pence for the financial year ended 30 november 2013 to be paid on 
6 june 2014
9 property plant and equipment
plant  
assets in machinery
land and course of and
buildings construction equipment total
£’000 £’000 £’000 £’000
cost
at 1 december 2011 4159 368 23388 27915 
reclassiﬁcation – 639 639 – 
additions 50 651 1079 1780 
acquisitions – 13 78 91 
disposals – – 555 555
exchange differences 45 6 255 306
at 30 november 2012 4164 387 24374 28925 
accumulated depreciation
at 1 december 2011 1761 – 17941 19702
charge for year 78 – 1251 1329
disposals – – 534 534 
exchange differences 22 – 191 213 
at 30 november 2012 1817 – 18467 20284
net book value at 30 november 2012 2347 387 5907 8641 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 65 financial statements
notes to the consolidated financial statements continued
66 porvair plc annual report  accounts 2013
9 property plant and equipment continued
plant  
assets in machinery
land and course of and
buildings construction equipment total
£’000 £’000 £’000 £’000
cost
at 1 december 2012 4164 387 24374 28925 
reclassiﬁcation 76 488 412 – 
additions 338 454 1039 1831 
acquisitions 100 – 393 493 
disposals 584 – 264 848
exchange differences 72 4 315 391
at 30 november 2013 4022 349 25639 30010 
accumulated depreciation
at 1 december 2012 1817 – 18467 20284
charge for year 210 – 1217 1427
disposals 224 – 209 433 
exchange differences 32 – 242 274 
at 30 november 2013 1771 – 19233 21004
net book value at 30 november 2013 2251 349 6406 9006
10  goodwill and other intangible assets
trademarks
development knowhow
expenditure software and other
goodwill capitalised capitalised intangibles total
£’000 £’000 £’000 £’000 £’000
at 1 december 2011
cost 54832 1863 1016 35 57746 
accumulated amortisation and impairment 18537 1250 865 24 20676
net book amount 36295 613 151 11 37070 
year ended 30 november 2012
opening net book amount 36295 613 151 11 37070 
additions – – 91 80 171 
acquisitions 2458 – 19 709 3186 
disposals cost – – 157 – 157
disposals amortisation – – 156 – 156 
amortisation charges – 124 117 92 333
exchange differences 87 15 5 3 110
closing net book amount 38666 474 138 705 39983 
at 30 november 2012
cost 57203 1829 962 820 60814 
accumulated amortisation and impairment 18537 1355 824 115 20831
net book amount 38666 474 138 705 39983 
year ended 30 november 2013
opening net book amount 38666 474 138 705 39983 
additions – – 47 146 193 
acquisitions 3654 – – 127 3781 
amortisation charges – 134 168 150 452
exchange differences 947 11 2 14 970
closing net book amount 41373 329 19 814 42535 
at 30 november 2013
cost 59910 1818 1011 1079 63818 
accumulated amortisation and impairment 18537 1489 992 265 21283
net book amount 41373 329 19 814 42535 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 66 67 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
10  goodwill and other intangible assets continued
internally generated intangible assets arising from the group’s product development are recognised only if all conditions are
met as described in the summary of significant accounting policies
amortisation of £452000 2012 £333000 is included in ‘cost of sales’ in the income statement 
impairment tests for goodwill
goodwill is allocated to the group’s cash generating units cgus identified by operating segment
a segment level summary of the goodwill allocation is presented below
2013 2012
                                                                                                                                                        metals                                                             metals                         
                                                                                                                                                    filtration  microfiltration               total          filtration    microfiltration total
                                                                                                                                                          £’000                £’000              £’000              £’000                £’000 £’000
14650 26723 41373 15285 23381 38666 
the recoverable amount of the goodwill is based on valueinuse calculations the calculations use cash flow projections
based on financial budgets approved by management covering a threeyear period pretax cash flows beyond the threeyear
period are extrapolated using the estimated growth rates stated below
key assumptions used for valueinuse calculations                                                                                                            metals filtration                           microfiltration
                                                                                                                                                                                                              us                  us                    uk germany
budgeted gross margin 27 35 37 35
growth rate used to extrapolate cash ﬂows beyond the budget period 3 3 3 3
weighted average cost of capital pretax 106 106 95 96
these assumptions have been used for the analysis of each operation within the operating segment management determined
budgeted gross margin based on past performance and its expectations for the development in the group’s markets the
average growth rates used are consistent with past experience and market expectations the discount rates used are pretax
and reflect specific risks relating to the relevant segments
based on the results of the current period impairment review no impairment charges have been recognised by the group in
the year ended 30 november 2013 having assessed the anticipated future cash flows the directors do not currently foresee
any reasonable changes in assumptions that would lead to such an impairment charge in the year ended 30 november 2013
11  derivative ﬁnancial instruments
                                                                                                                                                                                                                                   2013 2012
                                                                                                                                                                                             
                                                                                                                                                                                                     assets       liabilities             assets liabilities
                                                                                                                                                                                                       £’000              £’000              £’000 £’000
forward foreign exchange contracts – current 239 – 67 – 
forward foreign exchange contracts – cash ﬂow hedge – current 788 – – – 
forward foreign exchange contracts – cash ﬂow hedge – noncurrent 144 – – – 
interest rate swap agreements – cash ﬂow hedge – current – 20 – 99
1171 20 67 99
the gain recognised in the profit and loss account in the year for nonhedged derivatives amounted to £172000 2012 £54000
under ifrs the fair value of all forward foreign exchange contracts and currency options are recognised on the balance sheet
with the corresponding entry included within other comprehensive income where designated as a cash flow hedge and
administrative expenses where hedge accounting has not been applied the group recognises all forward foreign exchange
contracts and currency options on the balance sheet at fair value using external market data 
derivatives relating to trading activities are classified as a current asset or liability the full fair value of a hedging derivative is
classified as a noncurrent asset or liability if the remaining maturity of the hedged item is more than 12 months and as a
current asset or liability if the maturity of the hedged item is less than 12 months
the notional principal amount of the outstanding us dollar forward foreign exchange contracts at 30 november 2013 is
£151 million 2012 £68 million which mature in december 2013 january 2014 february 2014 march 2014 april 2014
may 2014 june 2014 july 2014 september 2014 and january 2015
the group has contracted interest rate swap agreements for us75 million 2012 us75 million of its us borrowings until
december 2013 the group has accounted for these swap agreements using hedge accounting with gains or losses being
recognised in other comprehensive income
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 67 financial statements
notes to the consolidated financial statements continued
68 porvair plc annual report  accounts 2013
12  inventories
2013 2012
£’000 £’000
raw materials 3549 3001 
work in progress 4169 4036 
finished goods 3899 3221 
11617 10258 
the group has recognised a provision of £50000 2012 £253000 for the writedown of its inventories during the year ended
30 november 2013 the group has utilised provisions of £256000 2012 £349000 during the year ended 30 november 2013
13  trade and other receivables
2013 2012
£’000 £’000
trade receivables 11773 11159 
less provision for impairment 205 275
trade receivables – net 11568 10884 
other debtors 119 76 
prepayments 2291 951 
13978 11911 
there is no difference between the fair value of trade and other receivables and their carrying value
credit risk in relation to trade receivables
the group has a diverse customer base both geographically and in the number of industries in which it operates 
there is credit risk associated with a decline in a particular industry or geographic region to offset this risk the group has
implemented policies that require appropriate credit checks to be performed on significant potential customers before 
sales are made customer orders are checked against preset criteria before acceptance and credit control procedures are
applied letters of credit and payments in advance are obtained from customers as appropriate
the group does not hold security over its receivables so was exposed to credit risk in respect of the net trade receivables
balance of £11568000 2012 £10884000 management believe the credit quality of trade receivables which are within the
group’s typical payment terms of between 30 and 90 days and which are less than 3 months overdue are good with
£2473000 2012 £1388000 being past due but not impaired at the year end of which £2029000 2012 £1070000 are
less than 30 days overdue
2013 2012
                                                                                                                                                          not yet         past due                                  not yet         past due
                                                                                                                                                                due    not impaired         impaired                   due     not impaired impaired
trade receivables                                                                                                                                 £’000              £’000             £’000              £’000              £’000 £’000
not yet due 9025 – – 9278 – – 
03 months overdue – 2473 169 – 1388 45 
36 months overdue – 70 22 – 213 158 
6 months overdue – – 14 – 5 72 
total 9025 2543 205 9278 1606 275 
the group has recognised a provision of £66000 2012 £189000 within administrative expenses for the impairment of its
trade receivables during the year ended 30 november 2013 on the grounds of recoverability the group has utilised
provisions for impaired receivables of £136000 2012 £87000 during the year ended 30 november 2013 
foreign exchange risk in relation to trade receivables is disclosed in note 26
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 68 69 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
14  cash and cash equivalents
2013 2012
£’000 £’000
cash at bank and in hand 6773 5863 
restricted cash – 1412 
cash and cash equivalents 6773 7275 
the credit risk associated with cash and cash equivalents is mitigated by holding funds with banks with high credit ratings
from aa to a 2012 aa to a as assigned by international credit rating agencies
cash and cash equivalents includes a restricted balance of £nil 2012 £1412000 us2263000 held as a guarantee by a
uk bank against the advance payment bond in relation to a longterm contract
the group’s cash balances are denominated in the following currencies
2013 2012
£’000 £’000
pounds sterling 437 246 
us dollar 3935 4899 
euro 1836 1789 
other 565 341 
6773 7275 
15  trade and other payables
2013 2012
£’000 £’000
amounts falling due within one year 
trade payables 7867 6723 
taxation and social security 697 560 
other payables 733 188 
accruals and deferred income 10175 6757 
19472 14228 
16  construction contracts
2013 2012
£’000 £’000
amounts due from contract customers included in trade receivables 308 589 
contracts in progress at the balance sheet date
amounts due from contract customers included in other receivables 102 – 
amounts due to contract customers included in other payables 3127 946
net amounts due to contract customers 3025 946
contract costs incurred plus recognised proﬁts less recognised losses to date 10105 4122 
less progress billings 13130 5068
contracts in progress at the balance sheet date 3025 946
at 30 november 2013 retentions held by customers for contract work amounted to £nil 2012 £nil advances received from
customers for contract work amounted to £148000 2012 £524000
the directors consider that the carrying amount due fromto contract customers is a reasonable approximation to fair value
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 69 financial statements
notes to the consolidated financial statements continued
70 porvair plc annual report  accounts 2013
17  borrowings
2013 2012
£’000 £’000
secured multicurrency revolving credit facility of us20 million 2012 us15 million 
maturing in january 2018 with interest at 225 2012 27 above us dollar libor 4474 8395 
secured ﬁve year amortising debt facility of £175 million 2012 £275 million 
expiring in june 2015 with interest at 20 2012 27 above sterling libor 1720 2750 
6194 11145 
2013 2012
bank loans of the group are repayable as follows £’000 £’000
within one year 983 1000 
one to two years 737 10145 
two to ﬁve years 4474 – 
6194 11145 
on 25 january 2013 the group entered into new five year banking facilities sufficient for its foreseeable needs comprising 
a us20 million revolving credit facility a £25 million amortising term loan reduced to £175 million at 30 november 2013
and a £25 million multicurrency overdraft facility
the loans are shown net of issue costs of £134000 2012 £nil which are being amortised over the life of the loan
arrangements the term and multicurrency revolving credit facilities expire in january 2018
at 30 november 2013 the group had £76 million 2012 £10 million unused loan facility and an unutilised £25 million
2012 £25 million overdraft facility
the carrying values of bank borrowings approximate their fair value as the impact of discounting is not significant the fair
values are based on the cashflows discounted using a rate based on the borrowing rate of 38 2012 30
the multicurrency facility and amortising debt facility are secured by fixed and floating charges against the group’s assets
the group’s borrowings are denominated in the following currencies
2013 2012
£’000 £’000
pounds sterling 1720 4750 
us dollar 4474 6395 
6194 11145 
18  deferred tax asset
the movement on the group’s deferred income tax account is as follows
2013 2012
note £’000 £’000
at 1 december 1996 1400 
exchange differences 28 20 
income statement charge 6 130 217
tax credited to comprehensive income in respect of pension liabilities 471 565 
tax credited to equity in respect of share options 75 228 
at 30 november 2440 1996 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 70 71 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
18  deferred tax asset continued
the movement of deferred tax assets and liabilities during the year is as follows
accelerated other short development
capital term timing costs share based retirement
allowances differences capitalised payments obligations total
£’000 £’000 £’000 £’000 £’000 £’000
at 1 december 2011 993 651 435 422 1755 1400 
chargedcredited to income statement 292 188 137 94 32 217
credited to equity in respect of share options – – – 228 – 228 
credited to comprehensive income in respect of pension liabilities – – – – 565 565 
exchange differences 19 6 7 – – 20 
at 30 november 2012 1266 457 291 744 2352 1996 
chargedcredited to income statement 113 119 34 105 37 130
credited to equity in respect of share options – – – 75 – 75 
credited to comprehensive income in respect of pension liabilities – – – – 471 471 
exchange differences 28 6 6 – – 28 
at 30 november 2013 1351 332 251 924 2786 2440 
there were no unprovided deferred tax amounts at 30 november 2013 2012 £nil
19  retirement beneﬁt obligations
2013 2012
£’000 £’000
deﬁned beneﬁt scheme deﬁcit 11741 8351 
additional pension commitments 134 143 
11875 8494 
the additional pension commitments arise out of contractual commitments to certain employees outside the scope of the
defined benefit plan these liabilities will crystallise between one and ten years 
a defined contribution schemes
for its us employees the group operates a defined contribution pension plan “the pension plan” covering all eligible
fulltime employees the group contributes 3 of each participant’s base salary each year to the pension plan in 2013 this
amounted to £176000 2012 £153000 in 2013 the group also made payments of £172000 2012 £155000 to
designated us 401k schemes on behalf of its employees
in the uk after the closure of the defined benefit plan to new members the group introduced a stakeholder plan to be
offered to all new employees total employer contributions in the uk paid to defined contribution schemes were £441000
2012 £266000
b defined benefit plan
the group operates a defined benefit pension scheme the porvair plc pension and death benefit plan the ‘plan’ covering
a number of employees in the uk the pension scheme is financed through a separate trust fund administered by trustees
with an independent chairman the plan was closed to new entrants in october 2001
formal valuations of the plan by a professionally qualified actuary are carried out at least every three years using the projected
unit method under this method the current service cost will increase in relation to the salaries of the members in future years
as those members approach retirement the latest available full actuarial valuation was at 31 march 2012 
2012 2009 2006
valuation valuation valuation
assumptions assumptions assumptions
the principal actuarial assumptions adopted in the 2012 valuation were 
past service investment return
preretirement 575 675 675
postretirement 375 500 475
salary increases 350 325 400
the actuarial value of the assets on the funding basis was sufficient to cover 66 of the benefits that had accrued to
members after allowing for expected increases in pensionable remuneration and the current funding deficiency amounted to
£110 million a full triennial actuarial valuation of the assets and liabilities of the defined benefit scheme was completed in
2013 based on data at 31 march 2012 as a result of this review the group and the trustees agreed to alter the employer’s
contributions from 82 of salary to 133 of salary a £194000 annual contribution towards the running costs of the
scheme will start in march 2014 increasing by 325 per annum the group also committed to make additional annual
contributions to cover the past service deficit of £456000 per annum increasing by 5 per annum commencing in december
2013 the funding shortfall is expected to be eliminated by december 2027 the next full actuarial valuation of the scheme
will be based on the pension scheme’s position at 31 march 2015 and is expected to be completed before june 2016
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 71 financial statements
notes to the consolidated financial statements continued
72 porvair plc annual report  accounts 2013
19  retirement beneﬁt obligations continued
the uk pension charge for the year was £240000 2012 £200000 the funding via employer contributions was £780000
2012 £469000 
the valuation of the deficit in the balance sheet is based on the most recent actuarial valuation of the plan as updated by a
qualified actuary to take account of the market value of the assets and the present value of the liabilities of the plan at
30 november 2013
balance sheet
the financial assumptions used to calculate plan liabilities under ias 19
2013 2012 2011
projected projected projected
valuation method unit unit unit
discount rate 42 42 48
rpi inﬂation rate 34 28 30
cpi inﬂation rate 24 21 20
general salary increases 34 28 30
rate of increase of pensions in payment 24 21 20
rate of increase for deferred pensioners 24 21 20
pre and post retirement mortality
the saps base mortality tables have been used with a 110 multiplier allowing for future improvements of 125 per annum
2012 10 per annum the average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date is
215 2012 197 for men and 237 2012 223 for women the average life expectancy in years of a member currently aged
50 on retirement on the balance sheet date is 228 2012 211 for men and 252 2012 237 for women 
the assets in the plan with their expected rates of return are
long term long term long term long term long term
expected rate expected rate expected rate expected rate expected rate
of return at value at of return at value at of return at value at of return at value at of return at value at 
30 november 30 november 30 november 30 november 30 november 30 november 30 november 30 november 30 november 30 november
2013 2013 2012 2012 2011 2011 2010 2010 2009 2009
£000 £’000 £’000 £’000 £’000
equities 75 12400 69 11000 71 10100 82 10300 81 9800 
bonds 42 1810 42 1800 48 8300 54 8000 55 7500 
gilts 35 7120 29 7200 – – – – – – 
other 41 49 36 149 38 180 39 52 40 47 
fair value of plan assets 21379 20149 18580 18352 17347 
present value of 
unfunded obligations 33120 28500 25600 23800 25800
deﬁcit in the plan 
excluding deferred tax 11741 8351 7020 5448 8453
the analysis of movement in the deficit in the plan for the year is as follows
2013 2012 2011
£’000 £’000 £’000
deﬁcit at 1 december 8351 7020 5448
contributions paid 780 469 628 
current service cost 240 200 200
other ﬁnance expense 380 400 200
actuarial losses 3550 1200 1800
deficit at 30 november 11741 8351 7020
the reconciliation of plan assets during the year is as follows
2013 2012
£’000 £’000
plan assets at the start of the year 20149 18580 
beneﬁt payments 1050 1200
company contributions 780 469 
member contributions 110 100 
expected return on assets 790 800 
actual return on assets in excess of expected return 600 1400 
plan assets at 30 november 21379 20149 
the actual return on plan assets was £1390000 2012 £2200000
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 72 73 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
19  retirement beneﬁt obligations continued
the reconciliation of plan liabilities during the year is as follows
2013 2012
£’000 £’000
plan liabilities at the start of the year 28500 25600
current service cost 240 200
interest cost 1170 1200
member contributions 110 100
beneﬁts paid 1050 1200 
losses on change in ﬁnancial and demographic assumptions 4150 2600
plan liabilities at 30 november 33120 28500
2013 2012
income statement £’000 £’000
analysis of amounts chargeable to operating proﬁt
current service cost 240 200
amount chargeable to operating proﬁt 240 200
analysis of amounts chargedcredited to other ﬁnance income and costs
interest on plan liabilities 1170 1200
expected return on assets in the plan 790 800 
net amount charged to other ﬁnance income and costs 380 400
total chargeable to the income statement before deduction of tax 620 600
other items
analysis of amounts recognised in the consolidated statement of comprehensive income
actual return on assets in excess of expected return 600 1400 
losses on change in ﬁnancial and demographic assumptions 4150 2600
total actuarial loss recognised in the consolidated statement of comprehensive income 3550 1200
cumulative actuarial loss recognised in the consolidated statement of comprehensive income 5550 2000
2013 2012 2011 2010 2009
history of experience gains and losses £’000 £’000 £’000 £’000 £’000
plan assets 21379 20149 18580 18352 17347 
deﬁned beneﬁt obligation 33120 28500 25600 23800 25800
deﬁcit 11741 8351 7020 5448 8453
experience losses on plan liabilities 1570 – – – 1700
experience gains on plan assets 600 1400 500 700 2700 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 73 financial statements
notes to the consolidated financial statements continued
74 porvair plc annual report  accounts 2013
20  provisions for other liabilities and charges
2013 2012
£’000 £’000
at 1 december 116 107 
charged to consolidated income statement
– unwinding of discount 9 9 
at 30 november 125 116 
the provisions arise from a discounted dilapidations provision for leased property which is expected to reverse in 2023
2013 2012
analysis of total provisions £’000 £’000
current – – 
noncurrent 125 116 
125 116 
21  share capital and share premium account
share
number of ordinary premium
shares shares account total
£’000 £’000 £’000
at 1 december 2011 42560872 851 34471 35322 
issue of shares on exercise of share options 51700 1 40 41 
at 30 november 2012 42612572 852 34511 35363 
at 1 december 2012 42612572 852 34511 35363 
issue of shares on exercise of share options 1121026 23 636 659 
at 30 november 2013 43733598 875 35147 36022
in april 2013 461500 ordinary shares of 2 pence each were issued on the exercise of long term share plan share options for
cash consideration of £9000 in february 2013 april 2013 may 2013 and june 2013 650000 ordinary shares of 2 pence
each were issued on the exercise of executive share options for cash consideration of £641000 in june 2013 october 2013
and november 2013 9526 ordinary shares of 2 pence each were issued on the exercise of save as you earn share options
for cash consideration of £9000
in december 2011 february 2012 and march 2012 51700 ordinary shares of 2 pence each were issued on the exercise of
save as you earn share options for cash consideration of £41000
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 74 75 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
22  share options and share based payment
share options are granted to executive directors and to selected employees details of share options awarded including
exercise price and performance conditions are disclosed in the remuneration report on pages 37 to 46
these equity settled share based payments are measured at fair value at the date of grant the fair value determined at the
grant date of the equity settled share based payments is expensed to the income statement on a straight line basis over the
vesting period based on the group’s estimate of shares that will eventually vest the charge is then credited back to reserves
fair value is measured by use of a blackscholes model the expected life used in the model has been adjusted based on
management’s best estimate for the effects of nontransferability exercise restrictions and behavioural considerations
details of the share options are
2013 2012
year of exercise subscription number of number of
scheme grant period price pence shares shares
2005 emi revenue approved 2006 2009 – 2016 15100 10000 10000
2005 emi revenue approved 2006 2009 – 2016 13100 – 162660 
2005 revenue unapproved 2006 2009 – 2016 13100 – 147340
2005 revenue unapproved 2009 2012 – 2019 6950 25000 350000 
2005 revenue unapproved 2010 2013 – 2020 5700 – 15000
2008 long term share plan 2010 2013 – 2020 200 – 461500
2008 long term share plan 2011 2014 – 2021 200 425000 425000 
2011 3yr save as you earn scheme 2011 2014 – 2015 9300 215601 239858 
2011 5yr save as you earn scheme 2011 2016 – 2017 9300 188743 192060
2008 long term share plan 2012 2015 – 2022 200 441000 441000 
2008 long term share plan 2013 2016 – 2023 200 308200 –  
at 30 november 1613544 2444418
movements in share options during the year were
2013 2012
weighted weighted
average average 2013 2012 
exercise exercise number of number of
price pence price pence shares shares
at 1 december 4505 5593 2444418 2293013
options granted 200 200 308200 486000
options expired – 9800 – 12000
options forfeited 9300 5086 18048 270895
options exercised 5875 8000 1121026 51700
at 30 november 2677 4505 1613544 2444418
options exercisable 9279 9917 35000 670000
options not exercisable 2531 2462 1578544 1774418
at 30 november 2677 4505 1613544 2444418
exercise 2013 2012 
year of price number number
grant scheme pence of shares of shares
options expiring during the year were 2005 1997 9800 – 12000
total – 12000
options forfeited during the year were
2008 saye 8000 – 87420
2011 3yr saye 9300 14731 39975
2011 5yr saye 9300 3317 –
2006 2005 13100 – 10000
2006 2005 15100 – 10000
2010 2008 200 – 38500
2011 2008 200 – 40000
2012 2008 200 – 45000
total 18048 270895
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 75 financial statements
notes to the consolidated financial statements continued
76 porvair plc annual report  accounts 2013
22  share options and share based payment continued
exercise 2013 2012 
year of price number number
grant scheme pence of shares of shares
options exercised during the year were 2008 saye 8000 – 51700
2006 2005 13100 162660 – 
2006 2005 13100 147340 – 
2009 2005 6950 325000 – 
2010 2005 5700 15000 – 
2010 2008 200 461500 –
2011 3yr saye 9300 9526 – 
total 1121026 51700
for options exercised in the year the weighted average share price at the date of exercise was 250 pence 2012 108 pence
30 november 2013
grant date 270106 070306 300109 280110 280110 270111 011011 011011 020212 010213
porvair porvair porvair porvair porvair porvair saye saye porvair porvair
2005 2005 2005 2005 ltsp ltsp 2011 2011 ltsp ltsp
share share share share 3 year 5 year
scheme option option option option
share price at grant date 13100p 15100p 6950p 5700p 5700p 12350p 11625p 11625p 11150p 17750p
exercise price 13100p 15100p 6950p 5700p 200p 200p 9300p 9300p 200p 200p
shares under option 330000 40000 350000 15000 500000 465000 279833 192060 486000 308200 
vesting period years 33 333 33 533
expected volatility 30 30 50 30 30 30 30 30 30 30
expected life years 33 333 33 533
risk free rate 450 450 050 050 050 050 050 050 050 050
dividend yield 160 139 180 395 395 186 247 247 215 146
fair value per option £ 030066 035263 021209 008395 048660 114827 029606 031849 102565 167899
2013 2012
share based payments £’000 £’000
charge for the year 455 380
the expected volatility is based on historic share price movements the directors anticipate it is possible the performance
criteria in relation to certain share options may not be met
23  other reserves
                                                                                                                                                                                                                     2013 2012
                                                                                                                                                                                             
                                                                                                                                                                                               cumulative                             cumulative
                                                                                                                                                                                                 translation        retained       translation retained
                                                                                                                                                                                                      reserve         earnings            reserve earnings
                                                                                                                                                                                                         £’000              £’000              £’000 £’000
at 1 december 612 9199 883 5886 
proﬁt for the year attributable to shareholders – 5481 – 4282 
dividends paid – 1175 – 1023
actuarial losses – 3550 – 1200
tax on actuarial losses – 471 – 565 
share based payments – 455 – 380 
tax on share based payments – 75 – 228 
interest rate swap cash ﬂow hedge – 79 – 81 
foreign exchange contract cash ﬂow hedge – 932 – – 
exchange differences 921 – 271 – 
at 30 november 309 11967 612 9199 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 76 77 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
24  cash generated from operations
2013 2012
£’000 £’000
operating proﬁt 8641 7205 
adjustments for
– difference between the noncash pension charge and the pension contributions made in the year 240 200 
– share based payments 455 380 
– depreciation and amortisation 1879 1662 
– proﬁt on disposal of property plant and equipment and intangibles 66 1
operating cash ﬂows before movement in working capital 11149 9446 
changes in working capital excluding the effects of exchange differences on consolidation
– increase in inventories 920 1069
– increase in trade and other receivables 2002 486
– increase in payables 4038 1272 
decreaseincrease in working capital 1116 283
cash generated from operations 12265 9163 
25  acquisitions
acquisition of trade and assets from eisenmann metallurgical llc
on 4 june 2013 the group through its subsidiary porvair filtration group inc purchased the trade and assets of eisenmann
metallurgical llc the trade is the manufacture of specialist filters and is based in the usa the trade contributed external
revenues of £13 million and a net profit of £01 million in the period 4 june 2013 to 30 november 2013 it is estimated that if the
acquisition had occurred on 1 december 2012 the acquisition would have contributed external revenues of £26 million and a
£04 million net profit for the year ended 30 november 2013 the total consideration is us5995000 £3890000
us3995000 £2582000 of this was paid at 30 november 2013 with further payments due up to 4 june 2015 the purchase
is accounted for as an acquisition acquisition related costs of £48000 have been charged to administrative expenses in the
consolidated income statement in the year ended 30 november 2013
£’000
purchase consideration
cash paid 2582 
deferred consideration 1308 
total purchase consideration 3890 
fair value of net assets acquired see below 1276
goodwill 2614
the goodwill is attributable to the acquired customer base and noncontractual relationships the synergies between the
business acquired and the existing operations of the group and the potential to develop the technologies acquired the
goodwill recognised is expected to be deductible for income tax purposes
acquiree’s
fair carrying
value value
£’000 £’000
property plant and equipment 467 467 
noncompete agreement included in intangible assets 65 – 
inventory 410 598 
trade receivables 366 366 
other working capital net 32 32
net assets acquired 1276 1399 
purchase consideration settled in cash 2582 
cash outflow on acquisition 2582
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 77 financial statements
notes to the consolidated financial statements continued
78 porvair plc annual report  accounts 2013
25  acquisitions continued
acquisition of trade and assets from thomas cain inc
on 20 september 2013 the group through its subsidiary seal analytical inc purchased the trade and assets of thomas cain
inc a manufacturer of environmental laboratory equipment and consumables based in the usa the trade contributed
external revenues of £199000 and net profit of £44000 to the group in the period from 20 september to 30 november 2013
it is estimated that if the acquisition had occurred on 1 december 2012 the acquisition would have contributed external
revenues of £12 million and a net profit of £03 million for the period ended 30 november 2013 the total consideration is up
to us1987000 £1241000 with a us1087000 £679000 initial payment and the remaining us900000 £562000
contingent upon achievement of agreed profit performance in the year to 30 november 2014 the contingent consideration
was estimated based on the current expectation of the division’s future performance the purchase is accounted for as an
acquisition acquisition related costs of £17000 have been charged to administrative expenses in the consolidated income
statement in the year ended 30 november 2013
£’000
purchase consideration
cash paid 679 
contingent consideration 562 
total purchase consideration 1241 
fair value of net assets acquired see below 201
goodwill 1040
the goodwill is attributable to the acquired noncontractual customer relationships the process synergies and the potential
for development expected to arise after the acquisition the goodwill recognised is expected to be deductible for income tax
purposes
acquiree’s
fair carrying
value value
£’000 £’000
property plant and equipment 26 26 
noncompete agreement included in intangible assets 62 – 
inventory 122 122 
other working capital net 9 9
net assets acquired 201 139 
purchase consideration settled in cash 679 
cash outflow on acquisition 679 
summary of deferred and contingent consideration on acquisitions
pulse eisenmann
instrumentation pell industries metallurgical thomas cain total
£’000 £’000 £’000 £’000 £’000
at 1 december 2012 63 125 – – 188
purchase consideration additions in period – – 3890 1241 5131
cash paid in period 63 – 2582 679 3324
exchange movement – 3 87 13 103
at 30 november 2013 – 122 1221 549 1892 
2013 2012
total total
£’000 £’000
included within other payables
– deferred and contingent consideration – current 733 188 
– deferred and contingent consideration – noncurrent 1159 – 
1892 188 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1413  page 78 79 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
26  financial risk management
the group’s activities expose it to a variety of financial risks market risk including foreign exchange risk and interest rate cash
flow risk credit risk and liquidity risk the group’s overall risk management programme is disclosed on page 21 to 24 of the
strategic report and page 30 of the directors’ report the group uses derivative financial instruments to hedge certain risk
exposures
foreign exchange risk
the group operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily
in respect of the us dollar and the euro foreign exchange risk arises from future commercial transactions recognised assets
and liabilities and net investments in foreign operations
i us dollar
the group has investments in its us based subsidiaries denominated in us dollars currency exposure arising from the net
assets of the group’s us operations is managed through borrowings denominated in us dollars
the uk operations generate significant us dollar revenues and forward contracts are used to reduce the impact of
movements in the us dollar exchange rate
the group has the following outstanding us dollar forward contracts
2013 2012
’000 ’000 
outstanding forward contracts 24710 10960 
the group has the following current assets and liabilities denominated in us dollars
2013 2012
’000 ’000 
trade receivables denominated in us dollars 10667 9278 
other receivables denominated in us dollars 12132 8185 
cash balances denominated in us dollars 6446 7852 
trade payables denominated in us dollars 4539 4103
other payables denominated in us dollars 14360 7823
10346 13389 
for illustrative purposes if the us dollar exchange rate were to move by 10 against sterling the group would make the
following gainslosses
2013 2012
£’000 £’000 
us dollar strengthens 701 928 
us dollar weakens 574 758
ii euro
the group has investments in its european based subsidiaries denominated in euros currency exposure arising from the net
assets of the group’s european operations is managed through net purchases from suppliers as a partial natural hedge
the group has the following current assets and liabilities denominated in euros
2013 2012
€’000 €’000 
trade receivables denominated in euros 1770 1937 
other receivables denominated in euros 764 1113 
cash balances denominated in euros 2209 2205 
trade payables denominated in euros 1837 1340
other payables denominated in euros 721 535
2185 3380 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1414  page 79 financial statements
notes to the consolidated financial statements continued
80 porvair plc annual report  accounts 2013
26  financial risk management continued
for illustrative purposes if the euro exchange rate were to move by 10 against sterling the group would make the
following gainslosses
2013 2012
£’000 £’000 
euro strengthens 202 306 
euro weakens 165 250
cash flow interest rate risk
the group’s interest rate risk arises from borrowings borrowings in the years ended 30 november 2013 and 2012 carry
interest at variable rates and are denominated in us dollars and sterling the group has entered into interest rate swap
agreements on 100 2012 73 of the us denominated borrowings to reduce the impact of future changes in us interest
rates on 12 december 2013 interest rate swap agreements expired reducing the fixed proportion of us denominated
borrowings to nil
the group is exposed to cash flow risk in respect of loans not covered by the interest rate swap agreements
for illustrative purposes if interest rates had been 05 higherlower on borrowings throughout the year with all other
variables held constant the post tax profit for the year would have been £28000 2012 £31000 lowerhigher respectively
credit risk
credit risk is disclosed in notes 13 and 14
liquidity risk
banking facilities including a maturity profile are disclosed in note 17 the amortising debt commits the group to quarterly
repayments of principal of £250000 2012 £250000 interest is payable based on the length of the revolving facilities
typically between 1 and 3 months and on a quarterly basis for the term loan the group is required to meet banking covenants
on a quarterly basis whilst the group has sufficient cash reserves and expects future trading to enable it to meet its cash flow
obligations should trading performance prevent it from doing so then the lender has recourse over the group’s assets
the table below analyses the group’s nonderivative financial liabilities and netsettled derivative financial liabilities into relevant
maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date derivative
financial liabilities are included in the analysis to the extent their contractual maturities are essential for an understanding of the
timing of cash flows the amounts disclosed are the contractual undiscounted cash flows
less than between 1 between 2
1 year and 2 years and 5 years
30 november 2013 £’000 £’000 £’000
borrowings 1146 868 4819 
derivatives excluding foreign exchange 20 – – 
trade and other payables 14324 1159 – 
15490 2027 4819
less than between 1 between 2
1 year and 2 years and 5 years
30 november 2012 £’000 £’000 £’000
borrowings 1411 10178 – 
derivatives excluding foreign exchange 96 3 – 
trade and other payables 13668 – – 
15175 10181 – 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1414  page 80 81 porvair plc annual report  accounts 2013
overview strategic 
report
governance financial
statements
other
information
26  financial risk management continued
the table below analyses financial instruments carried at fair value by valuation method the different levels have been
defined below
• quoted prices in active markets for identical assets or liabilities level 1
• inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly that is as
prices or indirectly that is derived from prices level 2
• inputs for the asset or liability that are not based on observable market data that is unobservable inputs level 3
level 1 level 2 level 3 total
30 november 2013 £’000 £’000 £’000 £’000
financial assets at fair value through proﬁt or loss
– trading derivatives – 239 – 239 
foreign exchange contracts used for hedging – 932 – 932 
derivatives used for hedging – 20 – 20
– 1151 – 1151
level 1 level 2 level 3 total
30 november 2012 £’000 £’000 £’000 £’000
financial liabilities at fair value through proﬁt or loss 
– trading derivatives – 67 – 67 
derivatives used for hedging – 99 – 99
– 32 – 32
the fair value of financial instruments that are not traded in an active market for example overthecounter derivatives is
determined by using valuation techniques these valuation techniques maximise the use of observable market data where it is
available and rely as little as possible on entity specific estimates if all significant inputs required to fair value an instrument are
observable the instrument is included in level 2
capital risk management
the group’s objectives when managing capital are to safeguard the group’s ability to operate as a going concern in order to
provide returns to shareholders benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost
of capital in order to adjust the capital structure the group may adjust the amount of dividends paid to shareholders return
capital to shareholders issue new shares or sell assets to reduce debt
the group monitors capital on the basis of the gearing ratio this ratio is calculated as net debt divided by total capital 
net debt is calculated as total borrowings as shown in the consolidated balance sheet less cash and cash equivalents 
total capital is calculated as ‘equity’ as shown in the consolidated balance sheet the gearing ratio at 30 november 2013 was
not applicable because the group had a net cash position 2012 9
the group’s borrowings are subject to certain covenant restrictions imposed by the bank these covenants have been fully
complied with during the year ended 30 november 2013
27  contingent liabilities
the group has entered into advanced payment bonds totalling 10282000 relating to monies received in advance on
contracts the bonds require the amount to be repaid in the event delivery is not made within certain parameters the
advanced payment bonds are released up to 6 months after the delivery of goods and in any event no later than february
2016 the group has entered into a performance bond totalling 981000 the bond is released after a warranty period and
in any event no later than august 2016 
dnotesconfinstate p5482 tprf66104p01cln  03032014  1414  page 81 financial statements
notes to the consolidated financial statements continued
82 porvair plc annual report  accounts 2013
28  commitments
capital and other financial commitments
contracts placed for future capital expenditure on property plant and equipment not provided in the financial statements at
30 november 2013 were £642000 2012 £161000
operating lease commitments – minimum lease payments
                                                                                                                                                                                                                                    2013 2012
                                                                                                                                                                                             
                                                                                                                                                                                                   land and                                land and
                                                                                                                                                                                                      buildings              other         buildings other
                                                                                                                                                                                                            £’000              £’000              £’000 £’000
future aggregate minimum lease payments in respect of leases expiring in
no later than one year 1125 127 1078 176 
later than one year and no later than ﬁve years 3682 173 3500 140 
later than ﬁve years 1875 – 2286 – 
6682 300 6864 316 
29  key management compensation
the board of directors including the nonexecutive directors are classified as key management their remuneration is
shown in the remuneration report on pages 37 to 46 their aggregate emoluments are disclosed in the table below
2013 2012
£’000 £’000
salaries and other short term employee beneﬁts 1009 969 
post employment beneﬁts 62 98 
share based payments 416 330 
1487 1397 
30  principal subsidiaries
the principal operating companies at 30 november 2013 are as follows
                                                                                                                                                                                                                                                  country of  holding
                                                                                                                                                                                                                                               incorporation in ordinary
name                                                                                                                                                                                                                                     and operation shares
selee corporation held indirectly usa 100
porvair selee advanced materials wuhan co limited china 100
porvair filtration group inc held indirectly usa 100
porvair filtration group limited held indirectly england 100
porvair sciences limited held indirectly england 100
seal analytical limited england 100
seal analytical gmbh held indirectly germany 100
seal analytical inc held indirectly usa 100
seal analytical shanghai company limited china 100
the directors consider that to give full particulars of all subsidiary undertakings would lead to a statement of excessive length
a full list of subsidiary undertakings which are either dormant or nontrading at 30 november 2013 will be annexed to the
company’s next annual return
dnotesconfinstate p5482 tprf66104p01cln  03032014  1414  page 82 overview strategic 
report
governance financial
statements
other
information
83 porvair plc annual report  accounts 2013
report on the parent company financial statements
our opinion
in our opinion the parent company financial statements
• give a true and fair view of the state of the parent company’s
affairs as at 30 november 2013 and of its cash flows for the
year then ended
• have been properly prepared in accordance with united
kingdom generally accepted accounting practice and
• have been prepared in accordance with the requirements 
of the companies act 2006
this opinion is to be read in the context of what we say below
what we have audited
the parent company financial statements which are
prepared by porvair plc comprise
• the parent company balance sheet as at 30 november 2013
• the parent company reconciliation of movements in
shareholders’ funds and
• the notes to the parent company financial statements which
include a summary of significant accounting policies and
other explanatory information
the financial reporting framework that has been applied in their
preparation comprises applicable law and united kingdom
accounting standards united kingdom generally accepted
accounting practice
in applying the financial reporting framework the directors
have made a number of subjective judgements for example
in respect of significant accounting estimates in making such
estimates they have made assumptions and considered
future events
certain disclosures required by the financial reporting
framework have been presented elsewhere in the annual
report rather than in the notes to the financial statements
these are crossreferenced from the financial statements and
are identified as audited
what an audit of financial statements involves
we conducted our audit in accordance with international
standards on auditing uk  ireland “isas uk  ireland”
an audit involves obtaining evidence about the amounts and
disclosures in the ﬁnancial statements sufﬁcient to give
reasonable assurance that the ﬁnancial statements are free
from material misstatement whether caused by fraud or error
this includes an assessment of
• whether the accounting policies are appropriate to the parent
company’s circumstances and have been consistently
applied and adequately disclosed
• the reasonableness of significant accounting estimates made
by the directors and 
• the overall presentation of the financial statements
in addition we read all the financial and nonfinancial
information in the annual report to identify material
inconsistencies with the audited parent company financial
statements and to identify any information that is apparently
materially incorrect based on or materially inconsistent with
the knowledge acquired by us in the course of performing 
the audit if we become aware of any apparent material
misstatements or inconsistencies we consider the 
implications for our report
opinions on matters prescribed by the companies act 2006
in our opinion
• the information given in the strategic report and the
directors’ report for the financial year for which the parent
company financial statements are prepared is consistent 
with the parent company financial statements and
• the part of the directors’ remuneration report to be
audited has been properly prepared in accordance with
the companies act 2006
other matters on which we are required to report 
by exception
adequacy of accounting records and information and
explanations received
under the companies act 2006 we are required to report to
you if in our opinion
• we have not received all the information and explanations 
we require for our audit or
• adequate accounting records have not been kept by the
parent company or returns adequate for our audit have not
been received from branches not visited by us or
• the parent company financial statements and the part of the
directors’ remuneration report to be audited are not in
agreement with the accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report if 
in our opinion certain disclosures of directors’ remuneration
specified by law have not been made we have no exceptions
to report arising from this responsibility
other information in the annual report
under isas uk  ireland we are required to report to you if
in our opinion information in the annual report is
• materially inconsistent with the information in the audited
parent company financial statements or
• apparently materially incorrect based on or materially
inconsistent with our knowledge of the parent company
acquired in the course of performing our audit or
• is otherwise misleading
we have no exceptions to report arising from this responsibility
financial statements
independent auditors’ report to the members of porvair plc
eauditorscompany p8384 tprf66104p01cln  03032014  1414  page 83 financial statements
independent auditors’ report to the members of porvair plc continued
84 porvair plc annual report  accounts 2013
responsibilities for the financial statements and the audit
our responsibilities and those of the directors 
as explained more fully in the directors’ responsibilities
statement set out on pages 31 and 32 the directors are
responsible for the preparation of the parent company
financial statements and for being satisfied that they give a 
true and fair view
our responsibility is to audit and express an opinion on the
parent company financial statements in accordance with
applicable law and isas uk  ireland those standards
require us to comply with the auditing practices board’s
ethical standards for auditors
this report including the opinions has been prepared for and
only for the company’s members as a body in accordance
with chapter 3 of part 16 of the companies act 2006 and for
no other purpose we do not in giving these opinions accept
or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it
may come save where expressly agreed by our prior consent
in writing
other matter 
we have reported separately on the group financial statements
of porvair plc for the year ended 30 november 2013 
christopher maw senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
cambridge
24 january 2014
eauditorscompany p8384 tprf66104p01cln  03032014  1414  page 84 overview strategic 
report
governance financial
statements
other
information
85 porvair plc annual report  accounts 2013
company registered number 01661935
2013 2012
as at 30 november note £’000 £’000
fixed assets
tangible assets 4 7 17
investments 5 59338 58271
59345 58288
current assets
debtors amounts falling due after more than one year 6 355 258 
debtors amounts falling due within one year 6 95 116 
450 374 
cash at bank and in hand 7 12 1412 
462 1786 
creditors amounts falling due within one year 8 13510 11677
net current liabilities 13048 9891
total assets less current liabilities 46297 48397 
creditors amounts falling due after more than one year 8 5345 10288
net assets 40952 38109 
capital and reserves
called up share capital 11 875 852 
share premium account 12 35147 34511 
exchange reserves 12 952 839
proﬁt and loss account 12 5882 3585 
total shareholders’ funds 40952 38109 
the financial statements on pages 85 to 91 were approved by the board of directors on 24 january 2014 and were signed on
its behalf by
b d w stocks
c p tyler 
financial statements
porvair plc – parent company balance sheet under uk gaap 
fparentconotes2 p8591 tprf66104p01cln  03032014  1414  page 85 as permitted by section 408 of the companies act 2006 no profit and loss account is presented for the holding company
the profit for the financial year is £3017000 2012 loss of £379000
parent company – reconciliation of movements in shareholders’ funds
2013 2012 
for the year ended 30 november note £’000 £’000 
profitloss for the financial year 3017 379
dividends 1175 1023
1842 1402
exchange differences 12 113 31
net proceeds from issue of ordinary share capital 659 41 
share based payments 12 455 380 
net increasedecrease in shareholders’ funds 2843 1012
opening shareholders’ funds 38109 39121 
closing shareholders’ funds 40952 38109 
financial statements
company profitloss for the financial year
86 porvair plc annual report  accounts 2013
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 86 overview strategic 
report
governance financial
statements
other
information
87 porvair plc annual report  accounts 2013
1 summary of signiﬁcant accounting policies
these financial statements have been prepared on a going concern basis under the historical cost convention and in
accordance with the companies act 2006 and applicable uk accounting standards a summary of the more important
accounting policies is set out below which have been applied on a consistent basis with the previous year except where noted
tangible fixed assets 
tangible fixed assets are capitalised at cost and are depreciated by equal annual amounts over their estimated useful lives
annual depreciation rates are 10 to 3333 straight line for plant machinery and equipment 
fixed asset investments
investments held as fixed assets are stated at cost less provision for impairment in value 
impairment of assets
assets are regularly reviewed to confirm their carrying values where the expected realisable value is lower than the book value
the excess of book value is charged to the profit and loss account during the period 
patents and trademarks
all expenditure on the registration renewal and maintenance of patents and trademarks is expensed as incurred
foreign exchange
monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the
end of the financial year 
exchange differences arising on retranslation of nonmonetary assets and liabilities are recognised directly to the exchange
reserve all other foreign exchange differences are taken to the profit and loss account in the year in which they arise
deferred taxation
the charge for tax is based on the profit for the year and takes into account tax deferred or accelerated because of timing
differences between the treatment of certain items for accounting and tax purposes full provision is made for deferred tax
resulting from timing differences between profits computed for tax purposes and profits stated in the financial statements to the
extent that there is an obligation to pay more tax in the future as a result of the reversal of those timing differences deferred tax
assets are recognised to the extent that they are expected to be recoverable and are measured on a nondiscounted basis
based on tax rates and laws enacted or substantively enacted at the balance sheet date
pensions
pension costs for defined benefit and defined contribution schemes are charged to the profit and loss account as incurred
the company participates in the group’s defined benefit pension scheme which is closed to new members the porvair plc
pension and death benefit plan the company includes only the cost of its contributions to the scheme in its profit and loss
account for the year because the structure of the scheme is such that it does not enable any individual group company to
identify its share of the assets and liabilities of the scheme
share based payments
the company has applied the requirements of frs 20 “share based payments” in accordance with the transitional provisions
frs 20 has been applied to all grants of equity instruments after 7 november 2002 that were unvested as of 1 january 2005
where the parent company has granted rights over its equity instruments to the employees of subsidiary companies there is a
corresponding increase recognised in the investment in subsidiary undertakings in those years
the company issues equity settled share based payments to certain employees equity settled share based payments are
measured at fair value at the date of grant the fair value determined at the grant date of the equity settled share based
payments is expensed on a straight line basis over the vesting period based on the company’s estimate of shares that will
eventually vest the charge is then credited back to reserves
at each balance sheet date the company revises its estimates of the number of share options that are expected to vest it
recognises the impact of the revisions to original estimates if any in the profit and loss account or if relating to a subsidiary
undertaking in investment in subsidiary undertakings with a corresponding adjustment to equity
fair value is measured by use of a blackscholes model the expected life used in the model has been adjusted based on
management’s best estimate for the effects of nontransferability exercise restrictions and behavioural considerations
operating leases
rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the
relevant lease
borrowing costs
all borrowing costs are typically recognised in the profit and loss account in the period in which they are incurred borrowing
costs incurred in the arrangement of new facilities are capitalised and subsequently recognised in the profit and loss account
over the period of the borrowings
related party transactions
the company has taken advantage of the exemption available to parent companies under frs 8 ‘related party disclosures’
not to disclose transactions and balances with wholly owned subsidiaries
financial statements
notes to the financial statements
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 87 2 proﬁtloss on ordinary activities before taxation
2013 2012 
profitloss on ordinary activities before taxation is stated after charging £’000 £’000 
services provided by the company’s auditors and associates
during the year the company obtained the following services from the company’s auditors at costs as detailed below
fees payable to company’s auditors for audit of parent company ﬁnancial statements 12 12
fees payable to company’s auditors and its associates for other services
tax services – compliance – 15
tax services – advisory – 13
12 40
3 directors’ emoluments
detailed disclosures of directors’ individual remuneration and share options are given in the remuneration report on pages
37 to 46 and in note 29 of the group accounts
4 tangible assets
plant 
machinery and
equipment
£’000
cost
at 1 december 2012 172 
additions 5 
at 30 november 2013 177
accumulated depreciation
at 1 december 2012 155
charge for year 15
at 30 november 2013 170
net book value
at 30 november 2013 7
at 30 november 2012 17 
                                                               
financial statements
notes to the financial statements continued
88 porvair plc annual report  accounts 2013
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 88 overview strategic 
report
governance financial
statements
other
information
89 porvair plc annual report  accounts 2013
5 fixed asset investments
                                                                                                                                                                             2013                                                               2012
                                                                                                                                                
                                                                                                                                              investment in         loans to                          investment in          loans to
                                                                                                                                                     subsidiary      subsidiary                              subsidiary        subsidiary
                                                                                                                                                undertakings undertakings               total   undertakings   undertakings total
                                                                                                                                                             £’000              £’000              £’000              £’000              £’000 £’000
cost
at 1 december 48143 26202 74345 48104 29664 77768 
additions in the year 1120 – 1120 – – – 
advancesrepayments – 126 126 – 3309 3309
capital contributions arising from frs 20 share based 
payments charge 35 – 35 39 – 39 
exchange differences – 214 214 – 153 153
at 30 november 49298 26114 75412 48143 26202 74345 
                                                                                   
accumulated provisions
at 1 december 2598 13476 16074 2598 13476 16074
at 30 november 2598 13476 16074 2598 13476 16074
                                                                                                      
net book value
at 30 november 46700 12638 59338 45545 12726 58271 
at 1 december 45545 12726 58271 45506 16188 61694 
the addition in 2013 relates to an investment in porvair selee advanced materials wuhan company limited of £1120000
the capital contributions arising from frs 20 charge represents the company granting rights over its equity instruments to the
employees of subsidiary undertakings this results in a corresponding increase in investments in subsidiary undertakings 
details of the principal subsidiary undertakings are given in note 30 of the group financial statements
the directors believe that the carrying value of the investments is supported by their underlying net assets
6 debtors
2013 2012 
note £’000 £’000 
amounts falling due within one year
corporation tax recoverable 64 70 
prepayments 31 46 
95 116 
amounts falling due after more than one year
deferred taxation 10 355 258 
355 258 
7 cash at bank and in hand
2013 2012 
£’000 £’000 
cash at bank and in hand 12 – 
restricted cash – 1412 
12 1412 
cash at bank and in hand includes a restricted balance of £nil 2012 £1412000 us2263000 held as a guarantee by a uk
bank against the advance payment bond in relation to a longterm contract
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 89 8 creditors
2013 2012 
note £’000 £’000 
amounts falling due within one year 
borrowings 9 11826 10383 
trade creditors 132 122 
taxation and social security 109 35 
accruals and deferred income 1443 1137 
13510 11677 
                                                                                                     
amounts falling due after more than one year
borrowings 9 5211 10145 
retirement obligations 134 143 
5345 10288
9 borrowings
2013 2012 
£’000 £’000 
                                                                                   
secured multicurrency revolving credit facility of us20 million 2012 us15 million 
maturing in january 2018 with interest at 225 2012 270 above us dollar libor 4474 8395 
secured five year amortising debt facility of £175 million 2012 £275 million expiring
in june 2015 with interest at 200 2012 270 above sterling libor 1720 2750 
bank overdraft offset against cash balances in other group companies under a 
group banking offset arrangement 10843 9383 
17037 20528 
2013 2012
£’000 £’000
bank and other loans of the company are repayable as follows
within one year 11826 10383 
one to two years 737 10145 
two to ﬁve years 4474 – 
17037 20528 
on 25 january 2013 the company signed a new five year banking facility agreement providing a us20 million revolving credit
facility a £25 million amortising term loan and a £25 million overdraft
the loans are shown net of issue costs of £134000 2012 £nil which are being amortised over the life of the loan
arrangements the term and multicurrency revolving credit facilities expire in june 2015 and january 2018 respectively
at 30 november 2013 the company had £76 million 2012 £10 million unused loan facility and an unutilised £25 million
2012 £25 million overdraft facility
the carrying values of bank borrowings approximate to their fair value
the multicurrency facility and amortising debt facility are secured by fixed and floating charges against the assets of the
company and its subsidiaries
financial statements
notes to the financial statements continued
90 porvair plc annual report  accounts 2013
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 90 overview strategic 
report
governance financial
statements
other
information
91 porvair plc annual report  accounts 2013
10  deferred tax asset
under frs 19 the company provides for deferred tax on a full provision basis deferred tax assets in the accounts have been
recognised as follows
2013 2012 
assets £’000 £’000 
accelerated capital allowances 4 4 
short term timing differences 351 254 
355 258 
the movement on the company’s deferred income tax account is as follows
2013 2012 
£’000 £’000
at 1 december 258 173 
income statement credit – 1 
tax credited to equity in respect of share options 97 84 
at 30 november 355 258 
there were no unrecognised deferred tax amounts at 30 november 2013 2012 £nil
during the year as a result of the change in uk corporation tax rates which were effective from 1 april 2013 deferred tax
balances have been remeasured deferred tax relating to temporary differences which are expected to reverse prior to 1 april
2014 is measured at 23 deferred tax relating to temporary differences expected to reverse after 1 april 2014 is measured at
the tax rate of 21 and deferred tax relating to temporary differences expected to reverse after 1 april 2015 is measured at the
tax rate of 20 as these are the enacted rates that will apply on reversal
the deferred tax asset in the table above has been included in debtors amounts falling due after more than one year note 6
11  called up share capital
2013 2012
£’000 £’000
allotted and fully paid
43733598 ordinary shares of 2 pence each 2012 42612572 875 852 
details of shares issued and share options are disclosed in notes 21 and 22 of the group financial statements respectively
12  reserves
share proﬁt and
premium exchange loss   
account reserves account
£’000 £’000 £’000 
at 1 december 2012 34511 839 3585 
premium on shares issued 636 – – 
retained proﬁt for the year – – 1842 
exchange differences – 113 – 
share based payments – – 455 
at 30 november 2013 35147 952 5882
the distributable reserves comprise the net amounts of the exchange reserve and the profit and loss account
13  contingent liabilities
the company has no contingent liabilities at 30 november 2013
14  financial commitments
at 30 november 2013 the company had annual commitments under noncancellable operating leases expiring as follows
                                                                                                                                                                                                                     2013                                      2012
                                                                                                                                                                                             
                                                                                                                                                                                                    land and                               land and
                                                                                                                                                                                                      buildings              other         buildings other
                                                                                                                                                                                                           £’000              £’000              £’000 £’000
commitments under noncancellable operating leases expiring
within one year 12 1 – – 
later than one year and less than ﬁve years – 1 48 – 
12 2 48 – 
fparentconotes2 p8591 tprf66104p01cln  03032014  1415  page 91 92 porvair plc annual report  accounts 2013
other information
shareholder information
registrar services
our shareholder register is managed and administered by capita asset services capita asset services should be able to help
you with most questions you have in relation to your holding in porvair plc shares
capita asset services can be contacted at
capita asset services
the registry
34 beckenham road
beckenham
kent br3 4tu
wwwcapitaassetservicescom
telephone 0871 664 0300 calls cost 10p a minute plus network extras lines are open 900am530pm monfri 
from outside the uk 44 20 8639 3399 email shareholderenquiriescapitacouk
in addition capita offers a range of other services to shareholders including a share dealing service and a share portal to manage
your holdings
share dealing service
a share dealing service is available to existing shareholders to buy or sell the company’s shares via capita share dealing services
online and telephone dealing facilities provide an easy to access and simple to use service
for further information on this service or to buy or sell shares please contact
wwwcapitadealcom – online dealing
0870 664 0364 – telephone dealing
email infocapitadealcom
please note that the directors of the company are not seeking to encourage shareholders to either buy or sell their shares
shareholders in any doubt as to what action to take are recommended to seek financial advice from an independent financial
adviser authorised by the financial services and markets act 2000
financial calendar 2014
30 november 2013
financial year end 2013
27 january 2014
full year 2013 results
08 april 2014
agminterim management statement
30 april 2014
exdividend date
02 may 2014
record date for dividend
31 may 2014
half year 2014 period end
06 june 2014
payment date for dividend
23 june 2014
half year 2014 results announcement
30 july 2014
exdividend date
01 august 2014
record date for dividend
05 september 2014
payment date for dividend
october 2014
interim management statement
30 november 2014
financial year end 2014
26 january 2015
full year 2014 results
covs 136 92 tplayout 1  03032014  1345  page 40 contact details and advisers
designed  produced by bexon woodhouse
wwwbexonwoodhousecom
printed by cpi colour a carbon neutral company
this annual report is printed on material which is up to 50
recycled elemental chlorine free and comes from a certified
sustainable resource both paper mill and printer have 
iso14001 accreditation
company secretary 
and registered office
chris tyler
porvair plc
7 regis place
bergen way
king’s lynn
norfolk pe30 2jn
telephone 44 01553 765500
fax 44 01553 765599
wwwporvaircom
company registration number
01661935
independent auditors
pricewaterhousecoopers llp
chartered accountants and statutory auditors
abacus house
castle park
cambridge cb3 0an
principal bankers
barclays bank plc
barclays commercial bank
po box 885
mortlock house
station road
histon
cambridge cb24 9de
registrars and transfer office
capita asset services
the registry
34 beckenham road
beckenham
kent br3 4tu
solicitors
travers smith llp
10 snow hill
london ec1a 2al
stockbrokers
peel hunt llp
moor house
120 london wall
london ec2y 5et
overview strategic 
report
governance financial
statements
other
information
35 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1345  page 41 porvair plc
7 regis place
bergen way
king’s lynn
norfolk pe30 2jn
telephone 44 01553 765500
fax 44 01553 765599
wwwporvaircom
covs 136 92 tplayout 1  03032014  1342  page 1


Summary:
 strategic report
chairman’s statement
introduction
i am pleased to report that porvair continues
to make progress against its financial and
strategic objectives
results
revenues in the year to 30 november 2013
were £843 million 2012 £765 million and
profit before tax rose by 25 to £78 million
2012 £63 million these are record results
for the group basic earnings per share were 
127 pence 2012 101 pence an increase 
of 26
cash generated from operations was 
£123 million 2012 £92 million after interest
and tax net cash generated from operating
activities was £97 million 2012 £74 million
at 30 november 2013 the group was net
cash positive for the first time with net cash 
on hand of £06 million 2012 net debt 
of £39 million
dividends
the directors recommend an improved 
final dividend of 18 pence per share 
2012 16 pence making the full year
dividend 29 pence per share 2012 
26 pence an increase of 12
board composition
michael gatenby retired from the board 
at the 2013 agm in april andrew walker 
will retire at the 2014 agm having been a 
director for nine years they have both made 
a substantial contribution to the group’s
direction and strategy during their time on the
board we thank them and wish them well
following the 2013 agm andrew walker
succeeded michael gatenby as senior non
executive director and paul dean succeeded
him as chairman of the audit committee 
paul dean will succeed andrew walker as
senior nonexecutive director following the
2014 agm
governance
the board sets high standards for its
corporate governance and has in place
monitoring systems to ensure that those
standards are upheld throughout the group
the board complied with all aspects of the 
uk corporate governance code throughout
the year ended 30 november 2013 with the
exception of fixed terms of employment for
nonexecutive directors however all of the
directors offer themselves for reelection 
at each agm 
new formats have been adopted for our
strategic and remuneration reports as
required by latest governance guidelines 
for the first time at the 2014 agm shareholders
will have the opportunity to approve the
group’s remuneration policies as well as 
the remuneration report
staff
looking back over the last five or six years it is
remarkable how much has changed at porvair
in sales terms we are almost double the size
we were in 2007 a significant achievement by
our staff this year we have been joined by
employees of eisenmann metallurgical and
thomas cain and we are pleased to welcome
them to the group the board is most grateful
to all porvair’s staff for their hard work and
commitment
current trading and outlook
porvair’s strategic direction remains consistent
and continues to produce good results 
2013 finished well and order books are
healthy the fundamentals of the markets in
which we operate look satisfactory the larger
contracts announced during the year are
progressing well and are expected to have 
a positive impact on the group with their
accounting implications outlined on page 7
the board expects that provided economic
conditions allow the underlying business will
continue to grow the group expects to invest
in additional manufacturing capacity in 2014 
in the uk usa and china to meet growing
demand and notes that the group’s new
product pipeline is promising a positive start
has been made to 2014
charles matthews obe
chairman
24 january 2014
charles matthews
chairman
summary
• strong financial results 
• progressive dividend 
• positive outlook
see governance report on pages 29 to 46
profit before tax
25
profit before tax up 25 
to £78 million
earnings per share
127p
earnings per share up 26 
to 127 pence per share
progressive dividend
29p
dividend increased by 12 
to 29 pence per share
strong performance and
continued progress
06 porvair plc annual report  accounts 2013
covs 136 92 tplayout 1  03032014  1343  page 9