Profit warning at Devro as material costs rise Analysts said "cost headwinds" had taken the shine off strong demand. Nicola Mallard, analyst at Investec, said: "We have seen headwinds from currency, as well as prolonged commissioning periods on new capacity and inflation in hide costs." Darren Shirley, an analyst at Shore Capital, said Devro's trading update was "mixed," as sales volumes have risen in many markets since the start of the second half. He said: "We continue to believe the medium- to long-term dynamics remain intact, with structural growth potential underpinned by very strong margins." Elsewhere, Numis said modest market downgrades could present a buying opportunity at lower levels, although the shares had enjoyed a strong recent run. Steve Hannam, chairman and a director of the company, on Monday purchased 12,594 shares at 317.6p each, after the share price dropped, a spokesman said, which reflected that the stock was a good "buying opportunity." Devro, which has manufacturing sites in Scotland, the Czech Republic, the United States and Australia, said it would invest about £35m ($56.0m) this year to increase capacity and productivity in 2013 and 2014. Devro shares have risen 30pc this year.