(Adds details, share movement)
July 30 Devro Plc, which makes edible
collagen casings for sausages, said it would cut jobs and lower
its capacity in Scotland as it focuses on the United States and
China to boost profit.
The company's shares rose as much as 6.3 percent on
Wednesday, making the stock one of the top percentage gainers on
the London Stock Exchange.
Devro, which says it makes enough collagen casings a year to
stretch to the moon and back several times, has plants in
Scotland, the United States, Australia and the Czech Republic.
The sausage maker plans to cut 130 jobs in Scotland and said
it would invest about 90 million pounds ($152 million) in new
plants in the United States and China to take advantage of
rising demand for its products in those countries.
The company reported a 7.7 percent drop in first-half
revenue to 109.7 million pounds, almost entirely due to the
strength of the pound against various currencies, but said
overall revenue was unchanged at constant currency rates.
Devro makes sales in euros, U.S. dollars and the yen, and
incurs manufacturing costs in Australian and U.S. dollars and
the Czech koruna, as well as the pound.
The stronger pound reduced operating profit by 2.2 million
pounds in the period, the company said.
Devro's pretax profit plunged 90 percent to 1.6 million
pounds, mainly due to restructuring costs.
The company's manufacturing operations are undergoing a
"significant transformation process", which is impacting current
year profits but will add to earnings in the future, the company
Devro announced an interim dividend of 2.70 pence per share.
Shares in the company, which is based in Moodiesburn, near
Glasgow, were up 5.5 percent to 256.50 pence at 1110 GMT on the
London Stock Exchange.
($1 = 0.5904 British Pounds)
(Reporting by Aastha Agnihotri and Noor Zainab Hussain in
Bangalore; Editing by Robin Paxton and Simon Jennings)