Food maker sinks over US factory move delay
DEVRO was down as it revealed revenue and pre-tax profit were flat in the first half of the year.
But the firm, which makes collagen products such as sausage casings for the food industry, said its transformation programme had reached its final stage.
The company has closed its old US plant, opening a new one in the country and another in China. But it said the transition period to the new American factory was likely to be longer than originally planned.
Meanwhile, exceptional costs from the programme are likely to reach £20m this year.
But Devro said manufacturing savings in Scotland and Australia, lower costs and favourable exchange rates had compensated for lower sales volumes. Shares slipped 8.2pc, or 23p to 256.25p. Specialist insurance group
Novae fell back following its halfyear results. Some £513.1m in premiums were written in the six months to June 30, up from £463.1m a year ago.
Profit before tax and foreign exchange climbed to £37.9m from £29m last year.
However, the combined ratio for the period climbed to 96.1pc from 89.8pc, because of a greater number of large losses and catastrophe claims. This ratio is the sum of claims, commissions and expenses divided by the amount earned from premiums – a ratio lower than 100pc indicates that underwriting has been profitable overall.
Net claims were £168m, up from £130.2m a year ago due to notable global events including earthquakes in Japan and Ecuador.
Net premium earnings were £318.4m. Chief executive Matthew Fosh said the business had shown growing resilience in an eventful first half of the year for the industry. Novae said that the long-term impact from Brexit was not currently seen as significant. Shares tumbled 2.6pc, or 21p, to 792p.
It wasn’t the only insurer to slip in the day. Direct Line dropped 2.2pc, or 8.9p, to 391p while Admiral lost 1.7pc, or 37p, closing at 2174p.
They were among the greatest fallers for the day on the FTSE 100, which finished 0.2pc, or 11 points lower at 6634.40. Among the top flight was Mediclinic International. Its chief financial officer, Petrus Jurgens Myburgh, was awarded 49,281 shares in the business under its long-term incentive plan.
Shares in the international healthcare provider climbed 1.3pc, or 14p, to 1059p yesterday. That puts the value of Myburgh’s share award at around £520,900.
Lower oil, commodity and animal feeds prices drove down revenue at NWF Group. Revenues were £465.9m in the year to May 31, down 5.4pc from the year before. Headline pre-tax profit edged up 2.5pc to £8.3m but net debt at the firm surged 67.8pc to £9.9m.
Profits in the fuels part of the group slipped to £3.9m from £4.3m a year ago as warm weather led to lower demand for heating oil, but the foods and feeds business had performed well.
NWF said its three acquisitions including Staffordshire Fuels had been integrated into the business and were performing to plan. Shares dipped 2.4pc, or 4p, to 162p.
Medaphor develops simulation devices to help in the training of medical professionals. The Cardiff-based business climbed as it revealed sales had risen 17pc in the six months to June 30, to £1.3m.
It has also signed an agreement with the American Board of Obstetrics and Gynecology to develop simulators for use in examinations. One cloud over the business is patent infringement claims being brought by US firm SonoSim. Medaphor says these claims are without merit and it defends its position.
The AIM-listed firm also announced the acquisition of Inventive Medical, which supplies cardio simulation products under the brand HeartWorks, for a total of £3m. This will be payable in shares. Medaphor shares advanced 6.3pc, or 2.5p, to 42p.