25th Jun 2007 10:31
Devro PLC25 June 2007 25 June 2007 DEVRO PLC TRADING UPDATE In advance of the start of its close period, Devro plc gives the followingtrading update. Trading during the first half of the year has been largely as indicated at theAnnual General Meeting. During the first half, market performance was mixed with mature markets beingslower and developing markets more buoyant. In manufacturing, while theintroduction of the new product range into the Scottish operation continues topresent a number of technical challenges, solid progress is being made and thesecond half is expected to show an improvement. In the United States, first half factory performance has shown an improvementover prior year. However, the impact of increases in the cost of the principalraw material, collagen, is expected to amount to around £0.5 million during thesecond half. As you would expect, a number of initiatives are targeted atminimising this cost increase. As a result of these factors, first half profits will be lower than the prioryear before exceptional items with the financial performance in the second halfexpected to strengthen. Initiatives previously outlined in terms of additionalcapacity, improved products and improving manufacturing will assist in thisimprovement. Peter Page, the new Chief Executive who joined the group on 1 June 2007commented "I am very positive about the longer term prospects for the group". Interim results are scheduled for 6 September 2007 Enquiries: Mark Antelme Brunswick 020 7404 5959 Notes to editors: Devro (www.devro.plc.uk) is the world's leading manufacturer of collagenproducts for the food industry. In addition, the company manufactures a range ofplastic casings, supplies customers in the food industry with a range ofdistributed products and also supplies pure collagen raw materials for use inthe healthcare industry. With manufacturing facilities in three continents and2005 revenue in excess of £150m, Devro products are sold worldwide. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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