Gutsy performance from Devro

Reporting on its 2010 performance, the rapidly globalising company said that during the year there had been further progress in manufacturing, with improved yields, faster line speeds and newly-installed lines combining to give a 7% increase in output. Additional capacity had been installed in the Czech Republic and Australia during the past year gave approximately 3% more volume during 2010, and will add 6% in a full year. Along with line upgrades in Scotland, these investments had contributed to reduced unit costs and lower carbon emissions. Against a background of more stable raw material availability and energy pricing, Devro said that all its operating sites performed well. Chairman Steve Hannam said the two key drivers for the business remain the growth of meat consumption in emerging markets, and the conversion of sausage casings from gut to collagen. "We experienced sales growth in most of our markets, with the exception of China, where we took a conscious decision to reduce sales to satisfy strong demand elsewhere. Excluding China, our sales volumes were up 11% compared to 2009. "Demand for collagen casings is growing rapidly in China, and we are looking carefully at strategic ways to approach that market." In the last year there has been increased interaction between Devro's locations and this had included the progressing of ar new ERP system, the development of best manufacturing techniques, health and safety, marketing approaches, new developments and increasingly the transfer of technology across the group. Revenue for the year was up 7.5% to £237m (2009: £220m) while pre-tax profit was 104% up at £55m (£27m).