The buzz
09 Nov 2017
Trading Update - OK "Trading Update Devro plc, one of the world's leading manufacturers of collagen products for the food industry, issues the following trading update for the period 1 July to 31 October 2017 ("the period"
.Trading for the period was in line with the Board's expectations, with total sales volumes ahead of the equivalent period last year, continuing the momentum delivered in H1.The Devro 100 programme continues to progress well, with actions on track to deliver the anticipated cost savings for the year.The Board's expectations for the year ending 31 December 2017 remain unchanged."Good news confirming that they are still on track for the year!! Good news that the sales volumes are up after the earlier problems.The B
KEEPING CALM MIKE
14 Sep 2017
Re: H1 Results - On the mend Hi Bernie , your here too, Devro has been a very long hold for me, and just let it tick away slowly , dont see anything exciting or disastrous on the horizon . K.C.M.
T-D
16 Aug 2017
Re: Ye Ha! Keep hold of them Games. Such low volumes and the sp keeps rising, good sign in my book.
gamesinvestor
16 Aug 2017
Ye Ha! Well - after a loong wait, I'm finally back in the black on this sausage company.Is there more to go, or is it a short term relief rally?Games
gamesinvestor
15 Aug 2017
Chinese Snorkers [link] skins the market for China and their love of the snorker.Boost for Devro, no?Games
Boring Bernie
02 Aug 2017
Re: H1 Results - On the mend The BuzzNet debt went down a bit over the six months, though that was mostly due to currency fluctuations being in our favour, but yea, I agree that it'll continue to reduce which will hopefully create a virtous circle !APF and HUM didn't ring any bells, so I just checked who they are and I'm pretty sure I've never touched them !I have a been a holder of Synthomer on and off over the years though, but don't hold them at the moment. I think last time I was a holder for about 18 months and thought they'd start to look more than fully valued so sold out in the mid £4's, and now see that they're at about a fiver !
The buzz
02 Aug 2017
Re: H1 Results - On the mend Hi BB,Fair assessment of where you believe where we are.My gut feeling is that the price now should be about 260p. 250p sounds quite feasible as I see that the price has risen to about 227p. Conceptually I see the debt being driven down quite rapidly as DVO is very cash generative, but the dividend prudently staying where it is until the debt has been driven down. If all those cost savings materialise, then the profit should rapidly rise.I have been pondering about the revenue. It does not seem to have noticeably increased for about 5 years, despite the market supposedly expanding. However, there are now new modern plants in the USA and China, not to mention some of the businesses that have been bought more recently. The S American market has lots of scope to improve. The Chinese market is huge and the revenue is growing well there. I noticed that Russia is now being mentioned - in the past Russia was a big trading partner but sales there fell back - perhaps the food sanctions mean that DVO slips in as the Russians need DVO's products to manufacture sausages that are no longer being imported?? So I see scope for a uplift in revenue of at least 20% in the coming years, especially as the lower value of the £ will boost the revenue since about 95% of it is generated overseas. So I am anticipating that the price will be above £3 a share in a year or two's time.As for my holdings - as posted earlier - I bought heavily in in April just below 180p a share, so at some time I might cream off a small amount to register a capital gain and to re-balance my portfolio, otherwise I am a strong holder. I hope that you continue to do well. I seem to recollect that you also hold SYNT, APF and HUM so things should have been going well your way.The B
Boring Bernie
02 Aug 2017
Re: H1 Results - On the mend In nautical terms, the ship has been steadied, but it's not exactly full steam ahead yet !Adjusted eps for the reported period is, more or less, flat, and expectations for the full year are also pretty flat. We're only really expected to return to growth in 2018, and that'd likely take us back to where we were in 2015.The divi's pretty decent, and I'm holding for the moment, but will likely be reducing a bit more if the sp sticks it's head above the 250p mark
LK Hyman
02 Aug 2017
Re: H1 Results - On the mend The buzz,Yeah, it all looks pretty good to me. It was reassuring that the covenant ratio is heading in the right direction. Chinese volumes look good, though clearly the little guys don't much take to the upmarket snorker skins.Looks as if the South American lads are taking time to accept the product coming from Devro's US plant, but we knew about that. With luck it will provide some upside in that neck of the woods when the fleischmeisters get the technical stuff sorted.All in all, great stuff.LKH on the flybridge
The buzz
02 Aug 2017
H1 Results - On the mend A quick scan of the results makes me think that things are getting much better.Key things that I spotted were:-Earnings still good and trading seems to be on the uptick. The promised improvements seem to be working out for them.Covenant ratio improved from 2.7 to 2.4.Net debt down to £159.1m from £153.mThe pension deficit reduced from £96m to £91,8m.Interim Dividend held at 2.7p.Good CE statement: " ... The Board's expectations for the full year remain unchanged and the business continues to generate strong cash flow from the underlying operations, which will enable net debt covenant ratios to be returned to historic levels over time."Hardly surprising to see that Mr Market's initial reaction seems to be positive.The B
The buzz
12 Jul 2017
Fresh Sausage [link] the price of DVO seems to be stabilised above 210p now. About 3 weeks before the half year report. Lets hope that everything is still on track. I am hoping for news of good progress in the USA and China.The B
gamesinvestor
28 Jun 2017
Re: Neptune raises the stakes LK - Let's hope they are confident enough to at least get us back to break-even, in what's increasingly looking like a stretched an nervous market.Games
LK Hyman
23 Jun 2017
Neptune raises the stakes Neptune now has 16.15% of Devro. They're clearly confident in Devro as isLKH on the flybridge
gamesinvestor
30 May 2017
Re: The reason... Ox -- And they say you can't time markets.Let's hope that DVO becomes a little less capital hungry going forward and they sell, sell sell and get some cash falling through to the bottom line and some of that debt chipped away at eh?Games -- I don't want to get skinned on this one lol!
Oxtrader
30 May 2017
Re: The reason... Hi GamesI think that's a bit irrational of you. I believe you make sound investments and Devro is no exception. Fundamentally it's an honest holding. However, I do believe we can all agree on the mis-judgement of the timescale of Devro's long term plans are, in that respect the share price growth. Devro are taking brave & expensive steps to re-align their business. However you could argue your money is to quicker grow elsewhere.However, I'm comfortable with the timescale & yield with this holding. Oxtrader.
