- 20 Oct 2012 18:27
..A leading supplier of recycled packaging in Europe
With a turnover in 2011/12 of £2.0 billion and employing more than 20,000 people, DS Smith Plc is an international supplier of recycled packaging for consumer goods.
On 30 June 2012 DS Smith acquired SCA Packaging. On a combined basis, the group is now the second largest manufacturer of corrugated products in Europe. We are also a leading worldwide supplier of bag-in-box packaging and a leading European supplier of plastic returnable transit packaging. The combined Group now has revenues of approximately £4 billion (based on a combination of historically reported figures and a 12 month contribution from both businesses).
DS Smith is a FTSE 250 company listed on the London Stock Exchange and headquartered in Maidenhead.
- 20 Oct 2012 19:46
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Hi markymar, Its a fairly defensive stock. A large double spread page this week in IC about the packaging industry.
Rather been a dull industry in the past. There has been a recovery in packaging prices ahead of an important reporting period means that the sectors charms may become impossible to ignore. The sectors prospects are being stoked by recent consolidation
which is delivering cost saving and boosting shareholders returns. So while the fragile
European economy is at risk,strong structural growth drivers, healthy cash flows and enticing dividends means packaging shares could pack a punch in investors portfolios.
There are solid grounds for optimism about near term prospects for the packaging sector. Despite a tough first half which saw falling prices and volumes, the outlook for packaging prices has improved and analysts are now forecasting a nascent (starting to grow or develop) recovery which if it holds will support forecast upgrades and a potentially a share price rally.
The bit I like - '' We continue to emphasise the strong, and in our view under appreciated , fundamentals in the packaging segment'', said Lars Kjellberg, Credit Suisse analyst.
Also a recent acquisition of SCA is delivering - 1.3 billion euro takeover of swedish rival.
They gave a 100 day update - cost savings initially expected at 75 million euros (£60m) were increased to 100 million euros, and cash savings from working capital and capital expenditure efficiency, which it previously expected to be 40m euros over 3 years, were increased to 130m euros.
Stockbroker Numeris reckons the shares look to cheap given the market shift away from paper production . DS Smith trades on 9.4 times 2014 prospective earnings . Numeris reckons a 12 -times rating is fair value, equating to 258p price target.
DS SMITH PLC STATEMENT - SCA PACKAGING INTEGRATION
Earnings release date - 6 Nov
Fingers crossed Marky.
- 21 Oct 2012 12:52
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Will do marky.
- 25 Oct 2012 09:13
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- 06 Nov 2012 07:08
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RNS Number : 3849Q
Smith (DS) PLC
06 November 2012
6 November 2012
DS Smith Plc - Trading statement
DS Smith Plc, the leading supplier of recycled packaging for consumer goods, today issues its period-end trading statement for the half-year to 31 October 2012.
The packaging business is performing in line with our expectations, with margins for the business as a whole, including SCA Packaging since acquisition on 30 June 2012, expected to be within the previously stated medium-term target range of 7 - 9% (HY 2011/12: 7.6%). This has been achieved through a combination of improving business mix together with pricing discipline and cost control. The regions of Northern Europe and Western Europe have performed particularly well in the period, whilst the UK has been held back by its high exposure to the paper cycle. The operating profit for the Group as a whole for the period reflects the seasonally higher margin usually experienced in the first half of the financial year.
As indicated at the 100-day update post the completion of the SCA Packaging acquisition, our strategic focus is on delivering above cost of capital returns and improving the mix of our business. We are growing our core FMCG categories with our pan-European customers whilst selectively exiting some categories of business that do not deliver attractive returns to shareholders.
The Plastic Packaging business has enjoyed continued growth as customers expand their use of bag-in-box for the transportation of liquids.
SCA Packaging integration
The integration of the SCA Packaging business continues as expected. As previously announced, we expect to deliver €100 million of annual cost savings, €130 million of cash savings and €100 million in proceeds from disposals of surplus property and non-core businesses by the end of year three. We expect the ratio of net debt to EBITDA to fall below 2.0x by 30 April 2013, one year earlier than we expected at the time the deal was announced.
The Group continues to expect substantial year-on-year EPS growth and the Board views the remainder of the year with confidence.
Miles Roberts, Group Chief Executive, said:
"DS Smith is resilient and well placed to create further substantial value for our investors. With the integration of the recently acquired SCA Packaging business going to plan, we continue to focus on strengthening the business across a significantly enlarged geographic footprint. The transaction transforms our ability to serve customers on a pan-European basis, while improving the efficiency of our operations."
- 06 Nov 2012 16:46
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Investec has also downgraded its rating for industrial group DS Smith from 'buy' to 'hold', saying that while its recent strong share price performance was warranted, it's time to 'pause for now'.
"Whilst DS Smith offers excellent EPS [earnings per share] growth and potential upside, we think after the strong run the stock has had, it is likely to pause for breath until the pre-close update during April 2013."
Will hold on to these
- 06 Nov 2012 16:57
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DS Smith in shape for year
Tue 06 Nov 2012
LONDON (SHARECAST) - Recycled packing firm DS Smith said it continue to expect substantial year-on-year EPS growth and views the remainder of the year with confidence.
In an update for the half-year to October 31st, the corrugated boxes maker said its packaging business is performing in line with expectations, with margins for the business as a whole, including SCA Packaging, expected to be within the previously stated medium-term target range of 7-9%.
DS said this has been achieved through a combination of improving business mix together with pricing discipline and cost control.
Northern Europe and Western Europe have performed particularly well in the period, whilst the UK has been held back by its high exposure to the paper cycle, the group explained.
The Plastic Packaging business saw continued growth as customers increase their use of bag-in-box for the transportation of liquids.
Commenting on the integration of the SCA Packaging business, it expects to deliver €100m of annual cost savings, €130m of cash savings and €100m in proceeds from disposals of surplus property and non-core businesses by the end of year three.
DS expects the ratio of net debt to EBITDA to fall below 2.0x by April 2013, a year earlier than expected.
Chief Executive Miles Roberts said: "DS Smith is resilient and well placed to create further substantial value for our investors. With the integration of the recently acquired SCA Packaging business going to plan, we continue to focus on strengthening the business across a significantly enlarged geographic footprint."
"The transaction transforms our ability to serve customers on a pan-European basis, while improving the efficiency of our operations," he added.
- 07 Nov 2012 18:26
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Questor in The Telegraph writes that recycled packaging group DS Smith confirmed yesterday that it continues to see "substantial" year-on-year earnings per share (EPS) growth following its purchase of SCA Packaging earlier this year. The recycled packaging group is focusing on servicing fast-moving consumer goods (FMCG) companies across Europe (Chicago Options: ^REURUSD - news) . This means Smith has a lot of euro exposure after buying Swedish company SCA (SNP: ^SCAY - news) for €1.6bn (£1.3bn)in January. This prompted a share price fall earlier in the year but these fears were significantly overdone and its shares have soared in the second half. Even after recent gains, the shares are now trading on an April 2013 earnings multiple of 12.8 falling to 10 next year. This is not overly stretched. "They were last tipped as a buy at 154½p in July and the shares remain a hold."
- 07 Nov 2012 21:53
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DS Smith: JPMorgan Cazenove ups target from 240p to 250p, overweight rating kept.
- 02 Dec 2012 17:57
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- 06 Dec 2012 07:25
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06 Dec 2012
Announcement of half-year results for the six months ended 31 October 2012
2012/13 Half Year ResultsHighlights
· Revenue +61.6% to £1,671.8m (H1 2011/2012: £1,034.5m)
· Adjusted operating profit(1) +57.3% to £123.2m (H1 2011/2012: £78.3m)
· Profit before tax (1) + 62.5% to £106.1m (H1 2011/2012: £65.3m)
· Free cash flow +175.3% to £151.8m (H1 2011/2012: £55.1m)
· ROACE(1)+80bps, to 13.7% (H1 2011/2012: 12.9%)
· Return on sales(1) -20bps to 7.4% (H1 2011/2012: 7.6%)
· EPS(1) + 15.8% to 8.8p (H1 2011/2012: 7.6p)
· Interim dividend per share + 31.6% to 2.5p (H1 2011/2012: 1.9p)
· Profit after tax £44.2m (H1 2011/2012: £34.8m)
(1)continuing operations, before exceptional items and amortisation
- 06 Dec 2012 12:38
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DS Smith Increases Dividend 32%
By Sam Robson
Shares in FTSE 250 (FTSE: ^FTMC - news) company DS Smith rose 3% to 219.80p at the time of writing, following the packaging and office product wholesaling business's half-year results being released.
The company, which specialises in paper and plastic packaging materials and also has recycling and waste management divisions, saw pre-tax profits jump 63% to £106.1m compared to £65.3m at the same stage last year. Revenue saw a similar increase, leaping 62% to £1.67bn against £1.03bn at the half-way stage in 2011.
In the interims, DS Smith management stated:
"In the first half of the financial year we have transformed our ability to serve customers on a pan-European basis. Though markets remain challenging, we are well placed to create further significant value for our investors through the robust performance of our corrugated and plastic packaging businesses, allied to acquisition synergy benefits that are ahead of our initial expectations."
The most keenly anticipated news for shareholders came in the form of a 31.6% increase in the interim dividend, rising to 2.5p per share (previously 1.9p). Elsewhere, earnings per share shot up 16% to end the first half at 8.8p, compared to H1 2011/12's 7.6p.
Like many British firms, DS Smith found the turbulent economic times hard-going on its shares, hitting lows of 34p at the end of 2008 and even dropping to 33.5p in 2009. However, with a strong management team and good business practice, the company rode through the recession and continues its upward trajectory, with the shares now increasing 650% since the dark days of 2008/9.
- 07 Dec 2012 14:15
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Smith (DS): JP Morgan moves target price from 250p to 256p and keeps an overweight rating. UBS raises target price from 260p to 270p maintaining a buy recommendation.
- 07 Dec 2012 16:34
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- 16 Dec 2012 16:01
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Broker Numis Securities expects full year pre-tax profit of £203m, giving EPS of 16.7p
(from£119m and 12.6p in 2012) Trade on 13 times forecast earnings, re-rate further.
- 17 Dec 2012 17:17
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DS Smith says continues to finalise accounts
17 December 2012 | 08:52am
StockMarketWire.com - DS Smith said in response to media reports that it is continuing the process to finalise the completion accounts following its recent acquisition of SCA Packaging.
"This is an agreed process between the Company and SCA AB, the seller of SCA Packaging and is a standard method of determining the value of the target's assets and liabilities at completion," the company said in a statement.
"At our interim results on 6 December we explained that the process is on-going, and this remains the case," it said, noting the integration was progressing well and ahead of original expectations.
At 8:52am: [LON:SMDS] Smith (DS) share price was -1.15p at 213.35p
- 30 Dec 2012 11:31
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DS Smith can pack a punch
Alex Brummer: The prospects for 2013 are not looking that bright with the eurozone in recession, Asia slowing and the US struggling with deficit and debt problems. So, once again, it seems sensible to look for reliable, defensive plays.
Diageo, my stock pick the past three years, continued to shine in 2012 rising by nearly 30 per cent in the year to date despite a recent setback in Mexico. For 2013 I have decided to switch horses.
My choice, the paper recycling and packaging group DS Smith, sits not far outside the FTSE 100 and looks deadly dull. And unlike Diageo, with its prestige branded liquors and beer portfolio, it can too easily be overlooked.
Under the guidance of its current chief executive Miles Roberts it has put down an important marker in Europe through the purchase of SCA Packaging. The core business of DS Smith is picking up paper waste from Britain’s supermarket groups and using modern technology and innovation to create corrugated cardboard and other durable products.
Among its recent innovations is a tough printed cardboard material that can safely hold liquids such as mass-market wine boxes. The shares that dropped to 900p in June 2012 have been steadily climbing but are well below the 2011 peaks.
Read more: http://www.thisismoney.co.uk/money/markets/article-2254395/2013-SHARE-TIPS-The-Mails-city-reporters-reveal-picks-coming-year.html#ixzz2GX1hREsV
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- 30 Mar 2013 19:31
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A buy in this weeks Shares mag
- 24 Apr 2013 07:05
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RNS Number : 0571D
Smith (DS) PLC
24 April 2013
24 April 2013
DS Smith Plc - Pre-Close Statement
DS Smith Plc, the leading supplier of recycled packaging for consumer goods, today issues its Pre-Close Statement for the full-year to 30 April 2013.
Trading and Integration
After a transformational period for the Group, the business expects to deliver operating profit fully in line with expectations and earnings per share towards the higher end of expectations. With a near doubling in the size of the Group, we expect revenues to be c. £3.7bn, up around 90% on the prior year. Our core Packaging businesses have delivered underlying volume growth in line with our GDP+1% medium term financial target. As in previous announcements, the original DS Smith business has continued to outperform and we are now starting to see an improving trend in the ex-SCA Packaging business.
We continue to make strong progress in the early delivery of synergies associated with the integration of SCA Packaging and are on track to deliver cost and cash synergies as previously advised, with around €40 million of cost synergies this year versus original guidance of €25 million. In addition, we expect to deliver a return above our cost of capital in the 10 months to 30 April 2013, a year earlier than originally announced. The business continues to generate strong cash flow and we expect the ratio of net debt to EBITDA to fall to 2.0x or below by 30 April 2013.
Miles Roberts, Group Chief Executive, said:
"We are delighted with the substantial operating, financial and strategic progress made in the past year, in what has been a transformational period for the Group and our people. Looking ahead, whilst the European packaging market remains competitive, we expect to make further significant progress. Our Packaging businesses continue to grow as we leverage our enlarged and strengthened geographic footprint and further develop our commercial proposition, particularly with our largest pan-European customers.
We look forward to delivering further substantial progress in the coming year."