Devro plc, the world's leading manufacturer of collagen products for the food industry, today announces that Dr Graeme Alexander, Chief Executive, has advised the Board that he wishes to retire from the role of Chief Executive and from the Board of Directors of Devro plc during the coming year. Following today's announcement the Board will begin the process of searching for a successor to Dr Alexander.
Dr Graeme Alexander, OBE, aged 57, joined Devro in 1977 and was appointed as a Director of the company controlling Devro's European operations in 1989. He was appointed Chief Executive following the company's listing on the London Stock Exchange in 1993.
Commenting on this announcement, Pat Barrett, Chairman of Devro plc, said:
"Dr Graeme Alexander has dedicated most of his professional life to Devro. He has been with the company for almost thirty years, fourteen of which he has led the company as Chief Executive. With unfaltering commitment he has made a huge contribution to Devro and his knowledge and leadership has played a key part in positioning the company as the global market leader. I am delighted that Graeme has agreed to remain with the group in an advisory capacity following the appointment of his successor and a proper period of handover.
"The Board fully respects Graeme's decision to retire from Devro and will begin the search for a new Chief Executive without delay. We are confident we will be able to find the right candidate to lead the company through its next phase of growth and development. The Board expects the succession process to be complete during the course of 2007."
The Company also indicates in respect of current trading that underlying group profits in the three months to the end of September 2006 were comfortably ahead of the equivalent prior year period, driven largely by a substantial increase in sales volumes.
Foreign exchange, however, has begun to have a significant effect on group results, with the second half currency impact forecast to be around £0.75 million worse than previously expected, and the full year impact now likely to be close to £2 million adverse. This has been due mainly to the strengthening of the Czech crown against the US dollar together with a marked increase in the strength of sterling against each of our main operating currencies.
An additional charge of £0.5 million has also been incurred as the Company invested in accelerating a programme for the development and commercialisation of a new and improved range of casings for the Devro Scotland product portfolio.
Sales are expected to remain solid during the fourth quarter, although, as always, trading in the period leading up to Christmas and the year end will be important in the final outcome for the full year.
Jon Coles / Mark Antelme Brunswick 020 7404 5959
Devro (www.devro.plc.uk) is the world's leading manufacturer of collagen products for the food industry. In addition, the company manufactures a range of plastic casings, supplies customers in the food industry with a range of distributed products and also supplies pure collagen raw materials for use in the healthcare industry. With manufacturing facilities in three continents and 2005 revenue in excess of £150m, Devro products are sold worldwide.