DS Smith “Meets Expectations”; Duropack Acquisition Soon

07-05-15-ds-cardIt may not sound like headline news, but DS Snith has announced in its year end trading results statement that the group’s performance in the year “has been in line with our expectations” while its acquisition of Durppack is expected to take place in the next couple of months.

The companny has said that, along with being in line with expectations, there has been “…strong underlying growth more than offsetting the continued strengthening of sterling on translated results.

“The market and business trends from our trading update of 23 February 2015 have remained consistent with volume growth in H2 ahead of our first half and the prior year. Growth has been across all regions, as the roll-out of our design centres and proposition continues to gain good customer traction.

“Return on sales and return on capital continue to improve due to further business integration, increasing our value-added products and services to customers, and operational efficiencies, combined with tight working capital management. Our outlook remains positive as the business performs in line with our medium term financial targets”.

Duropack Update

Following the announcement of the proposed acquisition of Duropack – a recycled corrugated board packaging business – earlier this year, DS Smith says it will be completed in Q1 of its financial year 2015/16. “Plans are in place to integrate this business immediately from completion and we look forward to building on the excellent market positions that Duropack already has in its regions” it said in the trading statement.

Miles Roberts, Group Chief Executive, added: “We are pleased with the performance of the business in the year, in particular the continued market share and volume growth. We continue to actively manage our business portfolio and the progress we have made with customers during the year, together with the opportunities we see for growth in these markets, gives us confidence in the prospects for the business.”

 

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