Devro profit dives 20%, bright outlook

Sausage skin maker Devro served up significantly smaller full year profits, following the disposal of its German distribution business Devro GmbH, but said underlying growth prospects for its global markets remain encouraging.

Pre-tax profit was squeezed down to £43m in the year ended 31 December compared to £54m the year before. Revenue increased to £227.7m during the period from £213.6m previously.

Devro, which renewed five-year bank facilities, said sales volumes continue to grow strongly in South East Asia, Russia and Eastern Europe. The success of its Select range in Japan and Europe particularly contributed to sales, the group said.

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Looking ahead chairman Steve Hannam said the outlook for 2012 was favourable.

"With our evolving product range and strategic capital investment programme, we are well placed to take advantage of this opportunity. The strong performance in the second half of 2011 and the continuing strength of the balance sheet give us confidence for the future."

Underlining its confidence in future trading the board is to recommend a final dividend of 5.5p per share, bringing the full year dividend to 80 per share, up 14.3%.