Noticed that this sausage skin maker reported yesterday. Good results, low debt and dividend yield of 8%. Looks tasty to me so I bought some more shares yesterday. Anyone else investing in this company? I heard rumours about a group called Acomita building a stake - anyone know what's happened to them?
TIA

Devro DVO was churned out on my screener this morning with both fundies and TA looking rather solid at the moment.

Ive hopefully caught it with MACD turning positive to back up the Flag chart pattern on the SP chart.

Confident statement at AGM today reinforces my view that this is a quality business for the medium term, but always DYOR.

Excellent interim figures today - despite effect of increased sales on working capital, plus substantial cap ex on new plant/equipment, they have reduced debt significantly. Market looks good for the foreseeable future and benefits of that cap ex to come. Hefty increase in dividend a sign of confidence. Only negative for me is the size of the pension deficit. IMO a very good share for long term ISA but always DYOR.

Spendid progress since the 73p low of July 2008
Why did we not have more investment courage in that dark period

Wee Punt Long (SB) @ 234.2 tight stop.

First class set of results today - and they have addressed the pension scheme deficit referred to in post 14. A real quality business with good growth prospects. China remains an untapped market - although whether they would be able to cope without large injection of new capital is questionable. I have added more recently and they are locked away in my ISA, but always dyor.

Agreed partridge, a tuck away for me.

re;china - you would have noticed the director relocation, clearly made with the intent to gain a proper foothold in that market - I'm guessing via a Joint Venture or licensing deal, rather than an acquisition.

Obviously a massive positive for this share

Indeed, Joe. As in other areas previously, the management look to be assessing the options very carefully before making what will hopefully be the right decision (and track record suggests they will).

Decent IMS this week and brave decision to invest heavily so far on course. Sales in UK/Australia slightly lower against comparative period, but rest of world (approx 75% by my reckoning) growing nicely. Unexciting, but nothing wrong with that and imo a solid hold for the medium term. Currently quite heavy into sausages as I have quite high weighting in DVO and GRG! Always dyor.

Very pleased with DVO figures yesterday and market belatedly seems to have agreed. Locked away in ISA for long term growth. Always DYOR.

sausage-skin maker Devro was the biggest climber among the mid-cap stocks adding 5.8pc ahead of first-half results tomorrow.

+22.60 (+8.13%)

2012 Interim Results


http://www.moneyam.com/action/news/showArticle?id=4417938

Devro Chairman buys up despite profit warning
Mon 22 Oct 2012

LONDON (SHARECAST) - Steve Hannam, the Chairman of FTSE 250 sausage casing supplier Devro, has added to 12,594 shares to his and his wife's stake in the company on the same day the company warned that full-year operating profits will be slightly below expectations, although still ahead of last year.

Hannam purchased the shares at 317.61p each for a total of £40,000. He and his wife now hold 223,622 shares, equal to 0.135% of the issued share capital.

The firm blamed the decrease in expected profits on a number of factors, namely adverse currency movements, increased raw material costs and extended plant commissioning periods. It said it expects the trend of increased raw material prices to continue into next year.

Consensus forecasts for the full year ending December 31st are for pre-tax profits of £43.64m on turnover of £242.50m. Earnings per share are expected to come in at 21.15p, putting it on a price earnings ratio of 15.9.

In an interim management statement covering the period from July 1st to date, the firm was upbeat about turnover, saying: “Sales volumes have continued to grow across a wide range of markets, notably in Japan, Europe and the Americas, with sales of the premium ‘Select’ range continuing the momentum of the first half. Overall market demand remains strong both in established and emerging markets.”

IC, Full year figures 26 Feb - Should report a strong end to 2012 and possible potential forecast upgrades. Demand is strong in emerging markets as well as established ones such as Europe and Japan.

Devro: Societe Generale raises target price from 380p to 410p.

Driving up hard towards the full year figures on 26 Feb

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012

Financial highlights (continuing operations)

2012 Unaudited
2011

· Revenue
£241.1m
£227.7m
+5.9%
· Operating profit
£43.2m
£42.7m
+1.3%
· Cash generated from operations
£48.1m
£45.1m
+6.7%
· Profit before tax excluding pension interest
£42.2m
£41.9m
+0.8%
· Basic earnings per share excluding pension interest
20.7p
20.2p
+2.2%
· Total dividend per share
8.5p
8.0p
+6.3%

Operational highlights
· On a constant currency* basis revenue grew by 8.1% (compared with reported revenue growth of 5.9%)
· Continued strong sales growth in Japan, Europe and the Americas
· Select sales grew to 8.4% of total revenue (up from 4.3% in 2011)
· On a constant currency* basis operating profit grew by 5.2% (compared with reported operating
profit growth of 1.3%)
· Significant ongoing capital investment programme to deliver further capacity increase in 2013/2014
· Cash generation remains strong
*Constant currency growth rates are calculated by restating 2012 figures using 2011 exchange rates.

Other statutory financial highlights (continuing operations)
· Profit before tax of £40.8m (2011: £43.0m)
· Basic earnings per share of 20.0p (2011: 20.8p)