Devro to ramp up investment after dip in profits

Sausage skin maker Devro today said it plans to increase its investment in production facilities after reporting a 5.1 per cent dip in profits for 2012.

The Moodiesburn-based firm said it spent a total of £33 million in the year to December as it replaced older production lines with modern high-speed facilities in a bid to reduce costs and increase output.

Chairman Steve Hannam said investment is expected to rise to £35m this year as it completes the upgrade of its site in the Czech Republic.

He added: “2013 will be another busy year as we take action to mitigate rising input costs, continue our capital programme, and step up our investment in people and infrastructure.

“This will ensure that we are well positioned to take advantage of the market to create long-term profitable growth for Devro.”

The company posted a pre-tax profit of £40.8m for the year to December, down from £43m a year earlier, as a 5.9 per cent rise in revenues to £241.1m was offset by higher raw material and energy prices.

Shareholders are due to receive a final dividend of 5.85p per share on 3 May, up from 5.5p last time, lifting the total payout for the year by 6.3 per cent to 8.5p.