Devro Share Discussion Threads

[extrader] 01/3/2006 10:43

The rise in retirement obligations (up £10.4m to £41.9m)is a bit lumpy,and the operating profit (up £0.6m) needs to be seen in the context of a 'one-off' reduction of £1.3m in pension charge (from £3.4 to £2.1m).

However, the fact that land sale proceeds were apparently used to retire debt (and not to top up the pension scheme) suggests the scheme is still adequately funded.... does anyone have an AR to hand ?

[besbury] 01/3/2006 08:00

Good morning idioterna.

Don't worry. If we can't eat poultry, we will eat more sausages;-)

[idioterna] 01/3/2006 07:34

Good morning Besbury - I see we both still hold a couple of these shares. I must admit I always like to read Devro's reports. They are concise and to the point there are a lot of other companies who could learn from them.

In general I thought the report looked sound and the 10% rise in dividend was pleasant, but a little disappointing considering the issues going forward. There are 2 issues that concern me:

1. "Net debt at the end of the year was reduced to #17.7 million, #7.8 million less
than at December 2004, and compares with #20.5 million reported at June 2005.
This reduction was achieved despite a marked increase in the level of capital
investment.

During the year, we made good progress on the expansion of our Czech facilities. As a result of this investment programme, capital expenditure for 2005 increased to #16.7 million (2004: #11.5 million) and we expect it to continue around this level, at least for 2006."

Since they are not going to be selling land for £6.3m this year where will they take the capital from?

2. I am worried that this bird-flu outbreak in Europe might also impact Devro after the spring.

[besbury] 01/3/2006 07:11

DEVRO PLC

1 March 2006

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005

Results 2005 2004+ % Change
Revenue #152.5m #148.9m 2.4%
Operating profit (before exceptional items) #21.3m #20.7m++ 2.8%
Exceptional items: #6.3m - -
- profit on sale of land
Profit before tax #25.8m #18.0m 43%
Earnings per share 11.5p 8.0p 44%
Earnings per share (before exceptional items) 8.7p 8.0p 9%
Dividend per share 4.4p 4.0p 10%
Net debt #17.7m #25.5m -


Looks pretty good, particularly the much reduced debt level.

[silverlandfinance] 14/1/2006 10:49

I have reread the interim report to 30/6/05. The prospects are that Devro will have a good year despite cost pressures and adverse currency movements. Also, borrowings are falling rapidly which means that in future years DVO will be able to pay higher dividents.
I would like to know how the thin film collagen venture is doing as this lost the company £400,000 in the first half.
Despite the uncertainties, Devro offers solid value as a mid-cap company and being in the food sector offers defensive qualities. If the price breaks up above 142p, it will go to at least 180p.

[ajmace] 13/1/2006 20:15

Anyone know why this one shot up (and back down) between 3 pm and 4 pm today ?

[rabbrooks] 13/1/2006 17:37

This B/B must be one of the least utilised in a mid cap Scottish Co.Is every one happy that the price stagnates? What is the future for Devro with it's as yet unproven technological product which may turn out to be a real plonker.

[besbury] 28/11/2005 21:01

remraf - 28 Nov'05 - 20:29 - 1632 of 1632


Nice rise today, no indication as to why though, anyone have any ideas?

I have no idea, but once again the share price behaved in a most erratic manner, and at one point mid morning the offer shot up to 140p & the bid to 135.5 which triggered a number of modest sells.

[remraf] 28/11/2005 20:29

Nice rise today, no indication as to why though, anyone have any ideas?

[besbury] 29/10/2005 11:09

Hello Idioterna

I have reduced my holding of DVO from 75k and now only have 20k. I have been switching in to a small engineering company called Tanfield. I will try to post a few links on here to enable you to do a little research, but I think it is a good recovery play with the right eco friendly products coming on stream at the right time.

The fall in DVO share price yesterday can probably be attributed to a brokers note to clients, suggesting they take profits. Not being one of their clients, I have no idea of the reasons for giving this advice. See Times Market report on the following link. You will have to scroll down to spot it.



Regards
B



Edit:

If you are interested in Tanfield, take a look at the TAN BB on here. If you trawl the last couple of weeks posts you should get the full picture of recent events.

This is a sample:

[idioterna] 29/10/2005 09:51

OK, nobody else around now, but Besbury, I wondered if you noticed exactly the same development as last year. We reach just over 130 and somebody sells around a million shares. I don't know if it's Mr. Magnier's strategy, but it sure looks like the same seller.

[idioterna] 04/10/2005 22:29

The only riser on my monitor today...hip hip hurra for DVO !!

[idioterna] 28/9/2005 15:37

Wow! We are flying (by DVO standards).. Up, up and away!

[besbury] 10/9/2005 11:30

Well now, Questor takes a different view in the DT this morning. I agree and will be holding onto mine with an average buying price of 53p.

[idioterna] 09/9/2005 01:58

Not tempted one way or the other by those results, but agree with Radbrook - holding a few DVO does feel a bit like a Saving Cerificate this year. Good to see that debt is still coming down..

[rabbrooks] 08/9/2005 20:17

Having investments in DEVRO ia almost like buying Savings Certificates. They have a small return,fairly safe, with just the outside chance of getting a return from new product. IT's early days with their new 'film' but Alexander's judgement is going to be tested once again. Just remember his tragic American experience.

[besbury] 08/9/2005 01:55

Investec reiterates it's BUY rating.

[scrapman] 02/8/2005 18:01

ended the day reasonablt well , anyone any comments ?

[scrapman] 02/8/2005 11:07

Strange move in the price for this one this morning, around 225k shares shifted at the bid price and they have moved up!
After watching these for what seems ages this looks like pretty good news ,especially following the rises of the last couple of days

[besbury] 21/6/2005 06:18

The following is a snippet from this mornings FT Market Report.

Where on earth have they been for the past 2 and a half years. Surley the FT know that Acomita, the largest shareholder in Devro, is John Magnier in disguise!


Devro, the sausage skin maker, nudged 1.2 per cent higher to 129p on talk that John Magnier, the Irish horse racing magnate and former Manchester United shareholder, was considering buying a stake.

[scrapman] 15/6/2005 11:20

bit of a lift , 2p in last week or so, not a lot of volume , perhaps something cooking,,,,,,,,,,,,, ! doubt if its on a BBQ , not at the moment anyway

[wipo1] 28/4/2005 14:36

Just a guess, I thought you stayed there, never knew you were away.

[idioterna] 19/4/2005 09:12

I haven't heard any bad news either, but I decided that I would sell 10k if DVO dropped to 120 again this year. The market looks to be going through a soft spot and Devro has gone XD so their isn't much reason to hold so many through the summer. But I'll buy back in by september.

Wipo - How did you know I was back in Sweden?

[wipo1] 18/4/2005 20:42

Besbury, Sorry don't know any details, whatever it is it might not effect the share price. I thought at 135p the shares looked fully valued that is why I sold, still watching for the moment. Best of luck

[besbury] 18/4/2005 13:47

The only possible "bad" news I read was HMG stopping sausages being served with school dinners. This suggested to me that it would be sensible to cream off some of my accumulated profit from an average buying price of 53p. I did so on March 22nd @ 135p for a profit of £17.000. I still hold 40k and will continue to do so.

What whisper of bad news have you heard wipo1?