Devro says US and China plants on track amid steady trading
Sausage skin maker Devro has left its outlook for the year unchanged after trading in line with hopes since the start of 2016.
The Moodiesburn-based group, which last month reported a rise in its 2015 profits, said in a trading update that market conditions were similar to the second half of last year.
In a brief statement to coincide with its annual shareholder meeting, Devro noted that its investment projects for new plants in the US and China remained on track.
“Both are in the commissioning phase and all government approvals are now in place,” it told investors.
The firm added: “Operating cash flow continues to be strong, with net debt rising in line with expectations reflecting the current investment programme. The board’s outlook for 2016 remains unchanged.”
Last month, Devro played down the prospect of further acquisitions this year after its purchase of Dutch rival PV Industries.
Chief executive Peter Page said that the PV deal was “always an obvious fit with us … we don’t see other acquisitions as being a key part of our strategy at the moment”.
Excluding exceptional items, pre-tax profits last year reached £29.2 million compared with £26.1m in 2014. Revenues slipped to £230.2m from £232.3m. Devro’s total dividend remained flat at 8.8p.