Devro (DVO)

Devro News, Fundamentals and Discussion on:

Devro page on Interactive Investor
Devro page on Financial Times
Devro page on ADVFN
Devro page on London South East
Devro page on Bloomberg Markets
Devro page on This is Money
Devro page on Motley Fool
Devro page on Proactive Investors
Devro page on Reuters
Devro page on Stockopedia
Devro page on Google Finance
Devro page on Stock Market Wire
Devro page on TradingView
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Devro RNS, News and Media

Headline

16 May 2018
Devro PLC - Holding(s) in Companyfrom Interactive Investor
16 May 2018
RNS press release - Holding(s) in Company from Proactive Investors
15 May 2018
Devro PLC - Director/PDMR Shareholdingfrom Interactive Investor
15 May 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
14 May 2018
Devro PLC - Director/PDMR Shareholdingfrom Interactive Investor
14 May 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
8 May 2018
Devro PLC - Holding(s) in Companyfrom Interactive Investor
8 May 2018
RNS press release - Holding(s) in Company from Proactive Investors
4 May 2018
Devro PLC - Holding(s) in Companyfrom Interactive Investor
4 May 2018
RNS press release - Holding(s) in Company from Proactive Investors
30 Apr 2018
Devro PLC - Director/PDMR Shareholdingfrom Interactive Investor
30 Apr 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
25 Apr 2018
Devro PLC - AGM - VOTING RESULTSfrom Interactive Investor
25 Apr 2018
Devro PLC - Trading Updatefrom Interactive Investor
25 Apr 2018
RNS press release - Trading Update from Proactive Investors
25 Apr 2018
RNS press release - AGM - VOTING RESULTS from Proactive Investors
19 Apr 2018
Devro PLC - Holding(s) in Companyfrom Interactive Investor
19 Apr 2018
RNS press release - Holding(s) in Company from Proactive Investors
10 Apr 2018
Devro PLC - Director/PDMR Shareholdingfrom Interactive Investor
10 Apr 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
9 Apr 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
3 Apr 2018
RNS press release - Director Declaration from Proactive Investors
29 Mar 2018
RNS press release - Appointment of Chief Financial Officer from Proactive Investors
23 Mar 2018
RNS press release - 2017 Annual Report and Notice of AGM from Proactive Investors
28 Feb 2018
RNS press release - Directorate change confirmation from Proactive Investors
28 Feb 2018
RNS press release - Director/PDMR Shareholding from Proactive Investors
27 Feb 2018
RNS press release - RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017 from Proactive Investors
7 Feb 2018
RNS press release - Holding(s) in Company from Proactive Investors
12 Jan 2018
RNS press release - Holding(s) in Company from Proactive Investors
5 Jan 2018
RNS press release - Holding(s) in Company from Proactive Investors
19 Dec 2017
RNS press release - Holding(s) in Company from Proactive Investors
19 Dec 2017
RNS press release - Holding(s) in Company from Proactive Investors
18 Dec 2017
RNS press release - Holding(s) in Company from Proactive Investors
11 Dec 2017
RNS press release - Directorate Change from Proactive Investors
11 Dec 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
9 Nov 2017
RNS press release - Trading Update from Proactive Investors
26 Oct 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
18 Aug 2017
RNS press release - Holding(s) in Company from Proactive Investors
17 Aug 2017
RNS press release - Holding(s) in Company from Proactive Investors
8 Aug 2017
RNS press release - Holding(s) in Company from Proactive Investors
2 Aug 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
2 Aug 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
2 Aug 2017
RNS press release - Director/PDMR Shareholding from Proactive Investors
2 Aug 2017
RNS press release - Devro plc Half Year Results 2017 from Proactive Investors
23 Jun 2017
RNS press release - TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES from Proactive Investors
30 May 2017
RNS press release - Block Listing Six Monthly Return from Proactive Investors
16 May 2017
RNS press release - Holding(s) in Company from Proactive Investors
26 Apr 2017
RNS press release - Trading Update from Proactive Investors
26 Apr 2017
RNS press release - Result of AGM from Proactive Investors
20 Apr 2017
RNS press release - Holding(s) in Company from Proactive Investors
11 Apr 2017
RNS press release - Holding(s) in Company from Proactive Investors
24 Mar 2017
RNS press release - 2016 Annual Report from Proactive Investors
15 Mar 2017
RNS press release - Holding(s) in Company from Proactive Investors
6 Mar 2017
RNS press release - Notification of Board changes from Proactive Investors
6 Mar 2017
RNS press release - Final Results from Proactive Investors
21 Feb 2017
RNS press release - Holding(s) in Company from Proactive Investors
21 Dec 2016
RNS press release - Appointment of Non-Executive Director from Proactive Investors
8 Dec 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
8 Dec 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
7 Dec 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors

Devro Charted

Devro Discussion on Interactive Investor

Today's Price Rise by Boring Bernie

  Mon, 16 Apr 2018 15:47:00 GMT
Well, the sp went up by not far off 10% today, for which I couldn't see any particular reason, so, contrary to the idea of letting your winners run, I sold about a third of my holding here at prices >=220p.

I thought that price was on the higher side of fair value, pushing towards overvalued, but am still holding a good ( for me ) chunk.

BB - puzzled as to the sudden jump in price
By Boring Bernie

Re: Final Results Look Good (to me!) by The buzz

  Wed, 28 Feb 2018 12:20:00 GMT
Hi BB,

You gave a fair summary of your analysis. I have not given a 'buy', although looking at where the share price has been recently (and the higher level of the FTSE) and the improved financial position, I had anticipated that there would have been some upward share movement.

I have had a more thorough reading of the text in the final report plus the main slides in the presentation. My over-riding impression is that DVO had been in a squall in 2016 but has sailed through it and things are much better. The debt and pension deficit looks to be reducing - and the dividend can be held: key area of concern around 2016.

Production in the new factories should increase and in turn the volumes. It is going to take another year for the exceptionals to work through, but I anticipate improving profit as the cost base goes down / factories operate at full capacity. The woolly area is matching market demand with capacity - in one of the slides it is suggested that with the increase in demand the balance is now better - a potentially higher margins?

So I plan to remain a holder to benefit from the dividend and what I perceive to be future growth.

The Buzz
By The buzz

Re: Final Results Look Good (to me!) by Boring Bernie

  Tue, 27 Feb 2018 19:56:00 GMT
The Buzz

The results were fine, and, on many metrics, we currently ( ~195p ) look fairly valued.
I'm happy to hold for the fairly chunky divi for a while, but with anticipated growth in profits of maybe somewhere close to 10% per annum, there doesn't really seem an overwhelming argument for adding to my holding here.

BB
By Boring Bernie

Re: Final Results Look Good (to me!) by The buzz

  Tue, 27 Feb 2018 11:53:00 GMT
Final results presentation on DVO web site:-
LINK

I must admit being a tad disappointed at the share price movement so far today. There is no point huffing and puffing about the share price: Mr Market will make up his mind where it will be. All that one can do is review the facts as presented and make one's own judgement. If nothing else a 4% return via the dividend is very useful, especially as I do not see much justification for a fall in the share price - indeed I am anticipating some future share price growth.

The lower sales volumes in S America are a historical well known issue. The key thing is that DVO report that things have improved "final quarter sales recovering to a level comparable to prior year." The slightly negative that I spotted was a slower than anticipated ramp up in production in the USA "Whilst there has been some good progress at the plant in South Carolina, output volumes in 2017 fell short of projections." They are clearly working on this and presumably now that the USA uses the same technology as used elsewhere in DVO (the previous USA plant used a different technology), that the remaining issues should be relatively straightforward to resolve.

On plus side, the new factory in China seems to be doing really well - "The plant in Nantong performed particularly strongly in 2017, achieving high levels of efficiency and productivity across a range of products. This plant is close to achieving the output levels originally envisaged, with sales matching output in the latter part of the year."

Still lots more reading to do - although what jarred a bit was using a discount rate of only 2.5% which (see earlier post) seems unduly pessimistic and means that the predicted pension deficit is slightly larger than it really should be.

One observation re-presentation - there is quite a bit about growth and increase in sales. ie DVO clearly consider that they are in a growth phase. If that is the case, then future profits should grow, the debt gets written down more quickly further improving covenant ratios etc etc.

The Buzz
By The buzz

Final Results Look Good (to me!) by The buzz

  Tue, 27 Feb 2018 06:29:00 GMT
My quick flip through the results before the market opens is: the results are inline with my expectations with profit holding up, turnover increasing, debt down considerably (covenant ration improved from 2.7 to 2.1) the pension deficit falling (£82m from £96m)and the dividend held. The Devro 100 programme has exceeded expectations and H2 was good.

The FD's (future CE) statement (echoed by the Chairman) summing up the future includes:-
"We expect further volume growth in 2018, supported by the introduction of the new Fine Ultra product platform, and continued manufacturing efficiency improvements, in particular at our US plant. We will continue to reduce net debt, building on the good progress made in 2017.

"Whilst mindful of ongoing pressures from input cost inflation and exchange rate volatility, at this early stage of the year the Board believes that Devro is well placed to make good progress in 2018.""

Now for some more detailed analysis.

The Buzz
By The buzz

Re: Pension Deficit - Mortality Figures by nick2name

  Thu, 22 Feb 2018 17:42:00 GMT
sorry chaps, hmg changed the rules, neither of us put enough in the pot to pay your expectation of pension

so tough shlt it aint gonna get paid

get used to it
By nick2name

Pension Deficit - Mortality Figures by The buzz

  Thu, 22 Feb 2018 09:03:00 GMT
I have just been poring over the BAE SYSTEMS results out today.
LINK

The thing that really caught my eye were the revised mortality assumptions had reduced their UK pension deficit by £0.97b !!!

The next question is (assuming Devro adopts the same revised calculations) what will be the corresponding impact with Devro's pension deficit?

Well it is not quite comparing apples with apples but there are strong similarities.
BAE scheme
UK Male aged 65 now 86-88 (from 86-89). ie Average life expectancy is 87 (was 87.5).
UK Female aged 65 now 89-90 (from 89-90). ie Average life expectancy 89.5 (was 89.5).
Also reductions for males/ females aged 45.
Reduction in life expectancy by 1 year equates to a reduction of £1.1b (£0.97b declared)
Discount rate 2.6/2.7% (was 2.7/2.7%) for past/future service.

DVO scheme in 2016 report
Male aged 65 has life expectancy 22.5 ie 87.5 years (ie same as BAE scheme last year).
Female aged 65 has life expectancy 24.8 ie 89.8 years (ie 0.3 years higher than for BAE).
Discount rate 2.6%

So I would suggest that the DVO will reduce the UK male aged 65 life expectancy from 87.5 to 87. That might not sound very much, but DVO state that increasing life expectancy by 1 year (no mention of gender) increases the pension deficit by £11.2m. If all employees were 65 year old males then the reduction in their life expectancy by 0.5 year will cause the deficit to be reduced by £5.6m. That won't be the case, but a useful reduction in the pension deficit will arise.

Discount rate - not too sure what DVO will adopt - if they take the half way house BAE value of about 2.65% then the discount rate used will increase by 0.05%. DVO state that an increase in discount rate reduces the pension deficit by £15.8m, so a 0.05% increase will be of the order of £3m.

What does this mean in the big picture? Ignoring the uplift due to increase in value of investments and DVO's pension contributions, the deficit of £96m will be reduced in the range £3m to £8.6+m).

Spreading my wings to valuation -DVO had pension assets in 2016 of £255m. It would not be unreasonable to assume a significant increase in excess of £10m to £20m. The overall effect should be a marked reduction in then pension deficit - we will know when the results come out on the 27th February.

The Buzz
By The buzz

No "Year End Trading Update" by The buzz

  Wed, 24 Jan 2018 07:41:00 GMT
I like to think that the absence of a "Year End Trading Update" this year (the one in 2017 was the very first one) is a good sign as they do not have to forewarn us of bad news on the production front this time. I will be satisfied if the full year results are in line with the trading update of 9.11.2017.

We are now waiting for the announcement of the Full Year Results on 27th February to find out more.

The Buzz
By The buzz

Re: Neptune Increased holding by The buzz

  Fri, 12 Jan 2018 18:11:00 GMT
..but what I am waiting for is the "Year End Trading Update" that was last issued on 11th January 2017.

I am hoping that the positive trading update of 9.11.2017 and the increase in holding by Neptune (who presumably have a good idea how trading has been going) will mean that the next update is positive.

The Buzz
By The buzz

Neptune Increased holding by Rhino1958

  Fri, 12 Jan 2018 16:13:00 GMT
Nice to see

Neptune Investment Management Limited increasing holding
By Rhino1958

Support Level by The buzz

  Fri, 15 Dec 2017 10:51:00 GMT
Last night I was on the verge of a significant top up when the 'buy' price hit 217p only to be thwarted by the 16:30 'bell' that sneaked up on me! Today the price has not only risen a bit, but I have noticed some significant purchases at 220p (currently 219p-221.25p). I conclude that below 220p is a good price to buy DVO at the moment! Roll on the 'Year End Trading Update' at the start of January.

The Buzz
By The buzz

Re: F.DIRECTOR TOPS UP by The buzz

  Tue, 12 Dec 2017 06:43:00 GMT
Well so he should buy some more shares if he is going to be the new CE. I hope that he does well for DVO - his financial background should be useful while DVO pays down the debt on its recent capital investments. Actually, going back to December 2016 there are several director purchases recorded, so perhaps the others should join in as well?

Not long before the end of the year trading statement due around 11th January. If it follows on like the statement in 9th November then it will be good news.

The Buzz
By The buzz

F.DIRECTOR TOPS UP by KEEPING CALM MIKE

  Mon, 11 Dec 2017 15:37:00 GMT
Rutger Helbing, Financial Director, bought 10,000 shares in the company on the 11th December 2017 at a price of 226.28p. The Director now holds 27,500 shares.

K.C.M.
By KEEPING CALM MIKE

Trading Update - OK by The buzz

  Thu, 09 Nov 2017 07:00:00 GMT
"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 Buzz
By The buzz

Re: H1 Results - On the mend by KEEPING CALM MIKE

  Thu, 14 Sep 2017 15:08:00 GMT
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.
By KEEPING CALM MIKE