Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Collagen products supplier Devro swung to a loss amid costs from the shutting of its Bellshill site in Scotland and writedowns related to the US and China plants.
For the year ended 31 December 2019, the company reported a pre-tax loss of £21.8m, compared with a profit of £17.5m as revenue fell 1% impacted by 'less favourable country and product mix, and some declines in other product revenues,' the company said.
'The statutory loss before tax includes Bellshill closure cost and a non-cash impairment charge of £45.9m primarily related to the US and China plants,' it added.
The annual dividend was unchanged a 9p a share.
'In 2020 we expect to achieve good volume growth in emerging markets. In our mature markets we expect volume growth in the North American snacking market and, whilst we anticipate a continuation of the challenging market conditions in the UK and Europe (particularly in the first half), we expect group volumes to be ahead of 2019,' Devro said.
'In addition, cost savings are expected to more than offset inflationary cost pressures. Absent any material adverse impact of Covid-19, the Board expects good progress in 2020.'
At 9:03am: (LON:DVO) Devro PLC share price was +6.6p at 153.6p