Devro warns on profits

Sausage skin maker Devro this morning sounded a profit warning, as a result of adverse currency swings and higher costs.

The British firm said that sales volumes continued to grow in Japan, Europe and the Americas, and overall market demand remained strong.

It added that raw material prices had risen, and this was expected to continue into 2013, leading to its full-year operating profits being below original expectations.

Devro added that it would invest around £35m to increase capacity and productivity at its manufacturing sites over the next two years.