SAUSAGE skin manufacturer Devro has reported a 4.3 per cent fall in underlying pre-tax profits in its interim results.

The Moodiesburn-based group saw revenue grow 10 per cent to £125 million as underlying profits before tax fell to £13.1m.

Chief executive Peter Page said Devro had “made good progress with its principal objectives of growing revenue, volumes and market share in a range of markets, while reducing unit costs in operations”.

Shares climbed six per cent as the company reported it was accelerating its Devro 100 efficiency programme. It said full-year savings are expected to be £6m.

It also said China was a “key market for future growth”. Following its Chinese manufacturing plant coming on line Devro reported that volume in the country was up 125 per cent in the period, compared with a “weak” performance last year.

Devro said the plant would be fully operational by the end of the year, and that lower prices in China reflected local market conditions, attributable to oversupply which should stabilise in due course.

Volume in South East Asia were up 40 per cent through a combination of market expansion and share gains.

In Latin America, volume fell 35 per cent, as expected, related to the impact of losses in the second half of 2016. Transition in the supply of products between plants continues, following completion of the new plants, with progress being made and further work planned for the second half.

Volumes in the UK and Ireland were up six per cent, following market share gains.