..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.

http://www.dssmith.com/

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.

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

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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A buy in this weeks Shares mag

Pre-Close Statement

RNS


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."

DS Smith seeing upward trend in markets
Wed 24 Apr 2013


DS Smith seeing upward trend in markets LONDON (SHARECAST) - Recycled packaging group DS Smith has confirmed that its full-year earnings will be towards the higher range of expectations after a 'transformational' year.

In a statement as it enters the close period at the end of its financial year to April 30th, the FTSE 250 company said it expected revenues to be close to £3.7bn.

Having acquired Swedish rival SCA Packaging for £1.28bn last June, nearly doubling the size of the group, revenues will rise 90% over the prior year and cost synergies from the new addition of €40m versus original guidance of €25m.

The group core packaging businesses have delivered underlying volume growth in line with its medium-term financial target of gross domestic product growth plus 1.0%, with the original DS Smith business continuing to outperform.

Furthermore, the acquisition should now deliver a return above the cost of capital in the 10 months to April 30th, a year earlier than originally announced, and "is now starting to see an improving trend".

The business reportedly continues to generate strong cash flow and management expects the ratio of net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) to fall to 2.0 times or below by year end.

Miles Roberts, group Chief Executive, wrote: “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."

Analyst Mike Murphy at broker Numis has raised his earnings-per-share number for 2013 from 16.6p to 16.8p to reflect a slightly lower interest cost and tax rate.

He also said: “We believe too many investors remain anchored to Smiths as a cyclical paper stock and have overlooked the value-added provided in a market which has capital discipline as evidenced by Smith's return on average tangible common shareholders' equity of 21% pre-tax for the year to 2012.”

DS Smith: Investec moves target price from 300p to 310p retaining a buy recommendation.

DS Smith (LSE: SMDS.L - news) : Bank of America ups target price from 251p to 262p and keeps a buy recommendation. UBS moves target price from 270p to 280p maintaining its buy rating. HB Markets upgrades to buy.

Share price forecast

The 7 analysts offering 12 month price targets for DS Smith plc have a median target of 272.00, with a high estimate of 301.00 and a low estimate of 260.00. The median estimate represents a 9.37% increase from the last price of 248.70



DS Smith PLC (SMDS:LSE) set a new 52-week high during today's trading session when it reached 252.00. Over this period, the share price is up 61.69%.

DS Smith PLC (SMDS:LSE) set a new 52-week high during today's trading session when it reached 265.03. Over this period, the share price is up 81.87%.

31 May Davy Research N/A Underperform

5 Jun Goldman Sachs 278.00 Neutral

21 Jun JP Morgan... N/A Overweight

Smith (DS): Bank of America ups target price from 262p to 288p and reiterates a buy recommendation.

Full Year Results 2012


Financial Highlights

· Revenue +86% to £3,669.3m (2011/12: £1,969.4m)

· Adjusted operating profit(1) +77% to £250.9m (2011/12: £142.0m)

· Profit before tax(2) +51% to £166.2m (2011/12: £110.2m)

· Profit after tax from continuing operations £70.3m (2011/12: £8.4m)

· EPS(1) +36% to 17.4p (2011/12: 12.8p)

· Dividend +36% to 8.0p (2011/12: 5.9p)

· Free cash flow +186% to £270.4m (2011/12: £94.5m)

· ROACE(1) 12.3% - in line with medium-term target



note 1: continuing operations, before exceptional items and amortisation

note 2: continuing operations, before exceptional items, after amortisation and share of profit/(loss) of associate



Please refer to glossary of terms for definitions.

These results include 10 months' contribution from the acquisition of SCA Packaging completed on 30 June 2012.



Delivering on our strategy

DS Smith has made substantial progress over the past year towards its strategic aim to become the leader in recycled packaging for consumer goods.



Operational and strategic highlights

· Successful integration of SCA Packaging

o Cost and cash synergy targets upgraded to €120 million and €150 million respectively

o Achieved a return above the cost of capital in first 10 months, one year earlier than anticipated

· Strong performance in packaging despite challenging economic environment with volume in line with medium term financial target of GDP +1 per cent

· Enhanced customer offering driving market share gains

· Successful international licensing of technology

· Building a strong platform for future growth



http://www.moneyam.com/action/news/showArticle?id=4621090

FTSE 250 (FTSE: ^FTMC - news) paper and plastic packaging company DS Smith jumped today after seeing annual pre-tax profits soar 51% and revenue surge 86% following a "transformational year".

Analysts at Investec (LSE: INVP.L - news) said that the results were ahead of forecast on all metrics, highlighting the 36% increase in the dividend to 8.0p which was "significantly more than we had expected (6.5p)".

DS Smith said that results were boosted by the €1.6bn acquisition of SCA Packaging in June last year which doubled the size of the business.

27 Jun Investec 300.00 Buy
27 Jun Numis 301.00 Buy

DS Smith (LON:SMDS)

Yesterday, DS Smith reported results for year ended 30th April 2013. Revenue from continuing operations rose 86% to £3.7bn boosted by strong growth across most markets. Adjusted operating profit was 77% up to £250.9m. Profit before tax rose to £86.6m from £21.7m. Earnings per Share (EPS) grew 36% to 17.4p; dividend per share (DPS) also increased 36% to 8.0p. For Western Europe, revenue increased to £966.2m from £569.4m while operating profits almost doubled to £73.4m. Revenue from France increased to £742.9m from £606.6m. The business in Germany, Austria and Switzerland (DACH) and northern Europe was almost entirely driven by the acquisition of SCA packaging. DACH and northern Europe revenues rose to £835.7m from £7.3m while operating profit advanced to £62.4m from £0.3m. The company has recently started operations in Central Europe and Italy. The revenue picked up fast and stood at £601.1m, up from £167.2m. However, the biggest market i.e. the UK was hit by decline in the paper market. Revenues remained almost flat at £961.2m while operating profits declined to £47.6m from £64.4m. The plastics business reported a robust performance with revenues growing to £305m from £265.3m.

Our view: DS Smith witnessed good growth in revenues and profits during the year with a remarkable acquisition of SCA packaging. The revenues and adjusted operating profit soared 86% and 77%, respectively. Acquisition of SCA packaging helped the company to tap major geographies within Europe. Revenue and operating profit in the newly formed geographical markets are rapidly gaining momentum. The plastics business, though a small part of the total business, is growing at a steady pace. The company has been successful in acquiring international technology license which is likely to help in expanding business across multiple geographies in the future. The geographical spread would also help the company in mitigating the impact of country-specific factors on the overall performance. The company has been successful in delivering strong overall results despite a weak European economy and sluggish paper industry. Continuing cost and cash synergies are likely to add to the profitability. The strong growth in EPS and DPS are a major attraction for the investors. We are optimistic about the company’s ability to achieve good revenue and profits growth in the future. We remain Buyers of the stock.


http://www.proactiveinvestors.co.uk/columns/beaufort-securities/13393/beaufort-securities-breakfast-today-including-wood-group-greene-king-and-ds-smith-13393.html

1 Jul Investec 300.00 Buy
1 Jul JP Morgan... 277.00 Overweight

A buy in this weeks IC - DS Smith's savings soar.

DS Smith doubled in size when it bought SCA Packaging for £1.3bn last year, and the benefits keep exceeding expectations. Management unearthed another slug of savings this time ,too, and rewarded investors with a juicier dividend. More savings seem inevitable and the growth in recycling and packaging should offset weak paper markets. Clearly, SCA flatters these results, generating most of the 77% growth in underlying operating profit to £251m. That included 40m euros (£34.2m) of cost cuts, which Smith now will total 120m euros, or 20% more than previous estimates.
Admittedly, most of the extra benefit fell in the year just gone, but there is more to come and that should underpin profit forecasts for 2014.
But there is still work to be done. Integrating SCA cost almost £58m and although volumes there are on ''improving trend'', they're are still no match for Smith's legacy business. And SCA'S inferior returns, plus a paper business that just broke even last year , hammering profits in the UK, dragged group margins below Smith's 7-9% target range. Still, finance director Steve Dryden is confident SCA will improve on this performance.
Broker JP Morgan expects adjusted 2014 pre-tax profit of £208m, giving EPS of 21.8p (from £166m and 17.4p last year).
DS Smith has got net debt below two times cash profits much more quickly than expected and the current year has started well. So, while the shares are up 50% since Feb 2012 , a forward PE of 11.5 , still looks cheap.