Devro sees strong overseas performance

By Georgi Gyton

29-Apr-2015 - Last updated on 29-Apr-2015 at 15:12 GMT

The firm said the restructuring of its operations in Scotland and Australia had now been completed

Scotland-based collagen casing manufacturer Devro said it had seen strong performances in China, Japan, Germany and North America, in its latest trading update.

Commenting on its performance in 2015 so far, the firm said sales volumes were showing year-on-year growth for the fourth successive quarter, with trading in line with the board’s expectations.

Its investments in overseas projects, including new plants in China and the US, "continue to progress well", with production due to commence in 2016.

The firm said the restructuring of its operations in Scotland and Australia had now been completed, and the changes were expected to deliver cost savings of £5m in 2015.

According to Nicola Mallard, an analyst at Investec, the improved casing volumes reported underpin the strong volume backdrop to its business.

"The challenge this year will be meeting as much of this demand as possible, and ahead of new capacity coming on stream in 2016," said the analyst’s note.

Mallard said it was an encouraging start to the year, but it expected the full-year result to be constrained by Devro’s current capacity.