Sausage-skin maker Devro's executive directors saw their pay packages cut last year, after the takeover candidate's profits were driven down by soaring energy costs and adverse foreign exchange movements.

None of the trio, including chief executive Graeme Alexander, received an annual bonus, which helped cut total directors' pay from £923,000 in 2005 to £820,000 last year.

Alexander was paid £293,000 in 2006, including benefits in kind worth £27,000, down from £336,000 in 2005, when he got a £52,000 bonus. Finance director John Neilson received £190,000, down from £218,000, while executive director Trevor Morgan was paid £178,000, down from £205,000.

The trio nevertheless enjoyed gains totalling £700,000 on the company's various share plans. Alexander made a gain of £196,964 on a deferred bonus scheme and a further gain of £166,495 on the vesting of awards under a 2003 share plan.

In 2006, Devro saw pre-tax profit fall 37% to £16.3m as revenue edged up less than 1% to £153.5m. Devro said "significant increases" in energy costs, combined with adverse currency effects from the Czech koruna, had a substantial effect on profit.

In January, Devro said it had received a takeover offer from an unspecified bidder, adding nearly a month ago that due diligence with the unnamed suitor was "largely complete".

It is understood the likely acquirer is Irish racing tycoon John Magnier, who is reported to have enlisted close associate Denis Brosnan - former head of Kerry Group - as part of his plan to take over the company. Magnier's Swiss investment vehicle, Acomita, has a 14% stake and is understood to be offering 150p per share for the remainder of the group, valuing it at £244m.