November's gruesome profit warning ensured that Devro (DVO) investors were braced for disappointment from its full-year results, and eager to discover how the sausage skin maker would get closer to full capacity. The answer came in the form of a strategic development programme, focused on enhancing sales capabilities, improving manufacturing efficiencies and launching differentiated products.
These measures are expected to generate returns of £13m-£16m a year by 2019, but have required short-term exceptional costs estimated at £12m-£14m, as well as capital investments of £7m-£8m. Altogether, the company said the spend would still be below that of the past three years. At least the dividend was maintained, and the shares did finish higher on the day.