Boring Bernie
10 Mar 2017
Large Delayed Trade Time : 11:48
9Price : 184.4906Volume : 500,000Value : 922.45kOn the face of it, it appears someone sold a big chunk just before lunch, but the trade was delayed till after hours, hence the rather odd "Last Trade" info show
Bill1703
09 Mar 2017
Shares magazine sticking with Devro As published today... a follow-up to their Buy tip back in December (at 165p):"A 13.4% gain for sausage skin maker Devro (DVO) is decent enough, although the company’s turnaround is proving a protracted affair. The edible collagen casings maker’s full year results (6 Mar) revealed in-line underlying pre-tax profit of £31.2m and a maintained dividend of 8.8p. Shore Capital forecasts modest pre-tax profit improvement to £32.6m for 2017.There was also news of a programme to drive revenue and profit growth, called Devro 100. This will come at the cost of a further £10m to £12m of exceptional items through 2017 and2018 and entail £7m to £8m of additional capital expenditure. We still like the fundamentals ofthe collagen casing market, which grew 4% in a tough 2016, but Devro needs to demonstrateit can regain market share to turn investor sentiment round.Although Devro’s volumes declined by 6.6% in 2016, reflecting reduced demand in Latin America, Russia, China and Continental Europe, China returned to growth in the final quarter.Encouragingly, CEO Peter Page also highlighted increased volumes and stable or increasing sales prices in Japan, South East Asia and the UK & Ireland.SHARES SAYS: We’re sticking with Devro for its long-term growth potential, although the additional costs of theturnaround are a short-term setback."
The buzz
06 Mar 2017
Web Cast There is a link in the final results to a web cast:-[link] listened to it and came away with a fairly good impression that things were under control. Also the questions from the analysts were readily answered and did not seem to identify any real issues. It seemed more like finding some numbers for their spread sheets! Now we have to wait to see what the analysts' reports have to say in terms of recommendations.The B
The buzz
06 Mar 2017
Re: There, you see Yes luckily Mr Market agreed with me for once! I thought that my initial 185p a share purchase was about the right price, but 176.8p to buy was too good an offer to turn down (i think that i got the cheapest purchase of the day!!). I felt that the results were really as good as we could hope for at this point in time - and the outlook looked reasonably promising - and retaining the dividend unchanged showed confidence in the future,So despite my initial concern, my first purchase seems to be in profit - and perhaps more importantly my main holding has increased in value. I might appear a bit blase about DVO's recovery, but I have held DVO for many years and went through a period when they hit around 40p a share - the main reason was a bad take-over that proved expensive to unwind. However, DVO has always thrown off shed loads of cash and it soon sorted itself out.The B
gamesinvestor
06 Mar 2017
There, you see I mean what's all the fussthe stock ended up on the day.Of course I new it would -- didn't I??Games -- oh ye of little faith !!
gamesinvestor
06 Mar 2017
Re: De La Rue or Devro "Or perhaps they were hoping that Devro could supply De La Rue with some tallow for their banknotes."LK - You've cracked it m8 - a perfect merger opportunity.Like two drunks propping each other up at the bar.Games
LK Hyman
06 Mar 2017
Re: De La Rue or Devro Games,"Perhaps they were hoping that De La Rue would print some for Devro to tide them over."Or perhaps they were hoping that Devro could supply De La Rue with some tallow for their banknotes.LKH etc
gamesinvestor
06 Mar 2017
Re: Results - First Thoughts "The dividend is still a big attraction"Buzz I seem to remember it was a big attraction at Jarvis as well .......I suppose it's unfair to draw a comparison - but with borrowings over £160 million (net gearing at 294) and a current net profit in the toilet, they have an awful lot of sausage skins to sell to make this one work.Games
LK Hyman
06 Mar 2017
Re: Results - First Thoughts The buzz,Hmmmm ... My reaction was "jam tomorrow; maybe". I wasn't hugely encouraged by the announcement, two years in advance, of more exceptional charges, albeit they are not massive at £10-£12 million spread over the two years. And I'm not clear whether the capital investments of £7-£8 million are also exceptional. Different impressions are given in different parts of the RNS.The Latin American problems are pretty disappointing ... is it really going to take till 2018 for Devro to learn how to make snorker skins that the market will accept? Fingers crossed that the same problems don't occur in China with the new plant "in a period of testing products".The reference to strong competition makes me think that the industry could do with a good dose of consolidation so I shall hold my small stake in Devro in the mild hope that they may be an acquiree rather than an acquirer.LKH on the flybridge
gamesinvestor
06 Mar 2017
Re: Results - First Thoughts " I also thought that the debt levels were still OK."buzz - Fingers and toes crossed - let's hope you are right.Games
The buzz
06 Mar 2017
Re: Results - First Thoughts gamesinvestor,Don't be too hasty.182.75p-184p at this moment so not much change from Friday. Yes there was a short term fall after a dollop of sales (I put this down to those making a quick profit having bought earlier - time will tell) - I topped up at 185p in the first 5 mins and then again at 176.7p. The dividend is still a big attraction and that has been held. I also thought that the debt levels were still OK.The B
gamesinvestor
06 Mar 2017
De La Rue or Devro [link] pictures of bank notes is ironic considering the results.Perhaps they were hoping that De La Rue would print some for Devro to tide them over.Games - grrrrrrr!!!
gamesinvestor
06 Mar 2017
Re: Results - First Thoughts Well the market hates it, it's down 5.5%Games - mistake buying into this one I'm afraid, it's going to be a loong haul or a lossy exit - which to choose?
The buzz
06 Mar 2017
Results - First Thoughts A 5 min scan of results makes me think that they not as bad as some feared.Dividend maintained, yes pension deficit up as expected £96m from £56.4m (mainly due to a whacking decrease in assumed discount rate from 3.75% to 2.6%), underlying operating profit £38.1m from £33.3m - but once the exceptional items etc come in the stautory profit before tax is £6.2m from £15.1m.The key bit in chairman's report for me was:-"Devro's reported revenues were 4.7% above the prior year. This includes exchange rate movements, which were particularly beneficial in the second half. As previously guided, Devro's revenues in constant currency declined 6.9% in the year. Volumes in Latin America, Continental Europe, Russia and China reduced, although China returned to year-on-year growth in the final quarter. The performance in these areas was partially offset by increased volumes, and stable or increasing local currency average sales prices, in Japan, South East Asia and the UK & Ireland."and the key S American statement by the CE:-"Our Latin America business was impacted by the change in sourcing away from the old USA plant, as part of the transformation of our global manufacturing operations. Despite extensive development and testing, when manufactured on a commercial scale it was found that the redesigned products were not able to meet customer needs, given their unique and demanding applications, resulting in a 33.5% volume reduction. Whilst many technical challenges have now been resolved, the process of scaling up testing and requalifying products will take time and we do not expect a major recovery in Latin America volumes until 2018. This remains a key area of focus for the group."Plus "OUTLOOKOverall demand remains strong and we continue to see many attractive opportunities to grow the business. In 2017, we will focus on increasing revenue to regain market share, achieving cost savings across our global operations and commencing the launch of new, differentiated products, as part of the Devro 100 programme. The further exceptional costs of this programme are expected to be between £10-12 million over the next two years, plus capital investments of between £7-8 million, with expected benefits of between £13-16 million per annum by 2019. Over this period there will also be a focus on reducing net debt levels.Combined with the upgraded global manufacturing asset base, we are confident this will deliver long term growth."
T-D
04 Mar 2017
6th March Sp ticked up nicely ahead of results on Monday.
