LONDON (Alliance News) - Devro PLC said Thursday trading since the start of 2019 was in line with expectations as momentum has built since a slow start.
Providing an update to its annual general meeting, the sausage casing maker explained that 2019 had got off to a "slower start" but had since seen "momentum building". All told, the firm explained it was "well placed" to make "good progress" in 2019.
Trading in North America, South East Asia and China was described as being "good". This has offset "ongoing challenging conditions" in Russia, Japan and Latin America.
2019 revenue is expected to be weighted towards the second half of the year. This will be driven by building sales of Fine Ultra as well as underlying market growth. Fine Ultra is a new product introduced in early 2018.
Cost saving initiatives were also said to be "on track", and Devro said it remains "confident" it would be able to meet its targets. The firm is aiming to make GBP16 million in annualised cost savings by the end of 2019.
Devro appointed Non-Executive Director Paul Withers as interim chair following the resignation of current Chair Gerard Hoetmer at the end of the AGM, as announced in November. The search for a new permanent chair is "well advanced", it said, adding it expects to make an announcement in the "near future".
Shares in Devro were 4.4% higher at 195.80 pence on Thursday in London.