Devro shares sizzle as it reinstates dividends

Shares of Glasgow-based sausage skin and food collagen products firm Devro rose 12% on Wednesday after the firm published “robust” results for the six months ended June 30, 2020, and reinstated its dividend.

“Given the group’s financial position, trading performance and outlook the board has resolved to declare the postponed 2019 final dividend of 6.3p, in the form of an interim dividend paid in October 2020, in addition to the 2020 interim dividend of 2.7p, flat on the prior year,” said Devro.

The company also said its chief financial officer Jackie Callaway is leaving the group to become CFO of Coats Group plc.

Devro said first-half revenue was flat at around £119 million and profit before tax fell slightly to £13.5 million.

Devro CEO Rutger Helbing said: “Our H1 2020 performance demonstrates the robust nature of our business and the progress made on our strategic priorities.

“We generated strong growth in emerging markets by leveraging our product and service strengths through our structured approach, underpinned by our three-year commercial plans.

“The business continues to deliver cost savings and operational improvements which have offset the impact of additional Covid-19 related costs; and the closure of the Bellshill site is on track.

“Whilst trading conditions remain uncertain due to Covid-19, the board expects, based on underlying growth momentum and supported by cost savings actions, and FX at current rates, to make progress during 2020. 

“We are also pleased to declare both an interim dividend, as well as the postponed 2019 final, reflecting our financial position and robust trading performance.”

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