Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improved over the past week After last week's 64% share price gain to UK£3.10, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Food industry in the United Kingdom. Total returns to shareholders of 112% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£3.33 per share. Upcoming Dividend • Nov 24
Upcoming dividend of UK£0.029 per share Eligible shareholders must have bought the stock before 01 December 2022. Payment date: 13 January 2023. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 4.9%. Lower than top quartile of British dividend payers (5.7%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 03
First half 2022 earnings released: EPS: UK£0.075 (vs UK£0.093 in 1H 2021) First half 2022 results: EPS: UK£0.075 (down from UK£0.093 in 1H 2021). Revenue: UK£129.8m (up 8.3% from 1H 2021). Net income: UK£12.5m (down 19% from 1H 2021). Profit margin: 9.6% (down from 13% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 4.9%, compared to a 9.8% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Aug 03
Devro plc to Report Fiscal Year 2022 Results on Mar 08, 2023 Devro plc announced that they will report fiscal year 2022 results on Mar 08, 2023 Board Change • Jul 31
High number of new directors Independent Non-Executive Director Rikke Mikkelsen was the last director to join the board, commencing their role in 2021. Upcoming Dividend • Jun 02
Upcoming dividend of UK£0.065 per share Eligible shareholders must have bought the stock before 09 June 2022. Payment date: 22 July 2022. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 4.5%. Lower than top quartile of British dividend payers (4.9%). Higher than average of industry peers (2.7%). Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Rikke Mikkelsen was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions Derivative • Apr 15
CEO & Executive Director exercised options and sold UK£140k worth of stock On the 12th of April, Rutger Helbing exercised options to acquire 66k shares at no cost and sold these for an average price of UK£2.11 per share. This trade did not impact their existing holding. For the year to December 2016, Rutger's total compensation was 41% salary and 59% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2021, Rutger's direct individual holding has increased from 94.75k shares to 128.31k. Company insiders have collectively bought UK£28k more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Apr 03
CEO & Executive Director recently bought UK£70k worth of stock On the 30th of March, Rutger Helbing bought around 34k shares on-market at roughly UK£2.08 per share. This was the largest purchase by an insider in the last 3 months. Rutger has been a buyer over the last 12 months, purchasing a net total of UK£118k worth in shares. Reported Earnings • Mar 03
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: UK£0.19 (up from UK£0.14 in FY 2020). Revenue: UK£252.4m (up 1.9% from FY 2020). Net income: UK£31.1m (up 35% from FY 2020). Profit margin: 12% (up from 9.3% in FY 2020). The increase in margin was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.0%. Over the next year, revenue is forecast to grow 4.6%, compared to a 5.8% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Board Change • Jan 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Rikke Mikkelsen was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Dec 03
Independent Non Executive Director Chantal Cayuela has left the company On the 30th of November, Chantal Cayuela's tenure as Independent Non Executive Director ended after less than a year in the role. We don't have any record of a personal shareholding under Chantal's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.46 years. Upcoming Dividend • Nov 25
Upcoming dividend of UK£0.028 per share Eligible shareholders must have bought the stock before 02 December 2021. Payment date: 14 January 2022. Trailing yield: 4.2%. Within top quartile of British dividend payers (4.1%). Higher than average of industry peers (2.6%). Reported Earnings • Aug 02
First half 2021 earnings released: EPS UK£0.093 (vs UK£0.067 in 1H 2020) The company reported a solid first half result with improved earnings and profit margins, although revenues were flat. First half 2021 results: Revenue: UK£119.9m (flat on 1H 2020). Net income: UK£15.5m (up 40% from 1H 2020). Profit margin: 13% (up from 9.3% in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 03
Upcoming dividend of UK£0.063 per share Eligible shareholders must have bought the stock before 10 June 2021. Payment date: 20 July 2021. Trailing yield: 4.3%. Within top quartile of British dividend payers (4.0%). Higher than average of industry peers (1.7%). Reported Earnings • Mar 29
Full year 2020 earnings released: EPS UK£0.14 (vs UK£0.25 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: UK£247.6m (down 1.0% from FY 2019). Net income: UK£23.1m (up UK£64.5m from FY 2019). Profit margin: 9.3% (up from net loss in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 03
Full year 2020 earnings released: EPS UK£0.14 (vs UK£0.25 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: UK£247.6m (down 1.0% from FY 2019). Net income: UK£23.1m (up UK£64.5m from FY 2019). Profit margin: 9.3% (up from net loss in FY 2019). Over the last 3 years on average, earnings per share has fallen by 63% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 03
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.5%. Earnings per share (EPS) exceeded analyst estimates by 30%. Over the next year, revenue is forecast to grow 2.3%, compared to a 4.5% growth forecast for the Food industry in the United Kingdom. Is New 90 Day High Low • Feb 17
New 90-day high: UK£1.80 The company is up 13% from its price of UK£1.59 on 19 November 2020. The British market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.30 per share. Is New 90 Day High Low • Jan 21
New 90-day high: UK£1.74 The company is up 11% from its price of UK£1.57 on 23 October 2020. The British market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 22% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.32 per share. Is New 90 Day High Low • Dec 15
New 90-day low: UK£1.48 The company is down 16% from its price of UK£1.76 on 15 September 2020. The British market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.26 per share. Upcoming Dividend • Nov 26
Upcoming Dividend of UK£0.027 Per Share Will be paid on the 15th of January to those who are registered shareholders by the 3rd of December. The trailing yield of 5.8% is in the top quartile of British dividend payers (4.9%), and it is higher than industry peers (3.4%). Is New 90 Day High Low • Oct 27
New 90-day low: UK£1.53 The company is down 5.0% from its price of UK£1.60 on 29 July 2020. The British market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.28 per share. Is New 90 Day High Low • Oct 01
New 90-day high: UK£1.85 The company is up 20% from its price of UK£1.55 on 02 July 2020. The British market is down 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£3.44 per share. 
