Devro plc (the "Group"), the world's leading manufacturer of collagen products for the food industry, is pleased to announce its interim results for the six months ended 30 June 2008.
" Excellent trading results on a like for like basis before exceptional items:
o Sales up 13% to £82.7m (2007: £72.9m)
o Operating profit up 16% to £9.2m (2007: £7.9m)
o Operating margin up to 11.1%
o EPS up 14% to 3.3p (2007: 2.9p)
" £3.1m exceptional non-cash asset write-down in relation to the proposed closure of the Korenov manufacturing plant in 2009. This will generate £2m of savings per annum from 2010.
" £0.2m exceptional income relating to the sale of land at Moodiesburn, Scotland in 2005.
" Trading results on a like for like basis after exceptional items:
o Operating profit at £6.3m (2007: £7.9m)
o EPS at 1.9p (2007: 2.8p)
" Net debt at 30 June 2008 £34.5m (2007: £36.7m).
" Dividend maintained at 1.425p.
" Strong growth in major markets.
Pat Barrett OBE, Chairman, commented:
"I am pleased to report that in the first six months of 2008, the Group achieved significant increases in sales volumes, sales revenues and operating profit before exceptional items, compared with the corresponding period in 2007. For the second half of 2008, the business will be affected by higher input costs, including energy, which will make it difficult to improve margins. Despite this, we expect that the momentum gained over the last 12 months will continue into the second half of the year as a result of continued growth in our markets and as management actions take further effect."
Forward-looking statements
Certain statements in this half-yearly report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We do not undertake to update any forward-looking statements whether as a result of new information, future events or otherwise.