7 May 2009 10:06
| For Immediate Release | 7 May 2009 |
Devro plc
("Devro" or the "Company")
Interim Management Statement and Annual General Meeting
Devro plc, the world's leading manufacturer of collagen products for the food industry, today issues the following Interim Management Statement for the period from 1 January 2009 to date, ahead of its Annual General Meeting to be held at 10.30am this morning. At the meeting Pat Barrett OBE, Chairman of Devro, will make the following statement on current trading.
"We are pleased to confirm that in the year to date Devro has performed in line with expectations.
Sales revenues have continued to improve, with Asia and Latin America showing particularly good growth compared to 2008. This growth, along with stability in established markets, ensures that we have a strong order book. The outlook for sales in Eastern Europe and Russia, however, remains uncertain.
2009 is showing a continuation of the positive trend in sales prices achieved last year, with significant increases recorded compared to the opening months in 2008.
Devro's performance is affected by fluctuations in foreign exchange rates throughout its global operations, both positively and negatively. Overall, these movements have been positive in recent months.
The worldwide decline in car demand has reduced the requirement for high quality leather. As a result it has been difficult for some of our factories to obtain adequate supplies of collagen, and this has led to significantly increased costs. The shortage also caused limited manufacturing downtime in January and February, in one of our plants. Management actions to secure supplies of collagen have been effective, and we do not envisage any further interruptions in 2009.
Cash generation in the business has been positive, following the strong sales performance towards the end of 2008. This is being used to fund our ongoing capital expenditure programme, particularly in the Czech Republic, where I am glad to report that the modernisation of our manufacturing facilities is proceeding to plan. Net debt was lower than at the same time last year.
Overall, for the year to date the positive impact of higher sales prices, and favourable currency movements have outweighed additional costs. The Board anticipates another year of progress."
For further information, please contact:
| Diane Stewart/ / Charles Ryland | |
| Buchanan Communications | Tel No: 0131 266 6150 / 020 7466 5000 |
Further information on Devro can be found on the Company's website: www.devro.plc.uk