SAUSAGE skin-maker Devro has posted “encouraging” results in mature and emerging markets despite global supply chain pressures.

The Lanarkshire-based firm said in the update for the year ended December 31, 2021 that it anticipates operating profit performance to be in line with expectations, representing “in excess of ten per cent constant currency growth”.

It said earnings per share were modestly ahead of current analyst expectations at 16.9p after a one-off tax benefit from the change in the UK corporate tax rate.


HeraldScotland:


Devro said: “Revenue growth for the full year was encouraging with positive developments in volume, price and mix resulting in strong performances in both mature and emerging markets. 2021 constant currency revenue growth was circa 5%.

“The group also delivered strong cash generation in the final quarter. Net debt at the end of December 2021 was £90 million with net debt/EBITDA at circa 1.4x.”

HeraldScotland: Source: London Stock ExchangeSource: London Stock Exchange

It earlier told the London Stock Exchange that mature markets showed strength with continued growth in North America with and improved trends in Europe and UK and Ireland, and emerging market growth was particularly strong in Latin America and Middle East and Africa.

Research analysts at Shore Capital said: “After an extended period of material capital investment, and a subsequent restructuring of the group’s commercial strategy, we are highly encouraged to see te growing evidence of the heavy lifting coming through in Devro’s broad-based sales growth; well done Rutger Helbing and co.

“We have previously stated our growing confidence in the sustainability of Devro’s improved performance, and today’s update further underpins our conviction that a multi-year growth strategy is emerging.” Analysts flagged challenges across global supply chains and “remain positive on Devro’s stock”, which closed up 3.5%, or 7p, at 209p.