Displaying items by tag: DS Smith

DS Smith Paper’s specialist producer of filing and educational papers, Higher Kings Mill in Devon, has been purchased by Asia File Corporation Berhad. The international company, based in Malaysia, is engaged in the manufacturing and marketing of filing and stationery products. The sale, for an enterprise value of £4.6 million, payable in cash, was completed on 30 September 2011. Once the sale has been finalised, all Higher Kings’ employees will transfer automatically to Asia File’s UK subsidiary.

This transaction marks a further development in the execution of DS Smith Plc’s strategy to focus on recycled packaging for consumer goods and to reduce paper manufacture that does not directly support the packaging business.

DS Smith Paper’s Managing Director, Chris Rosser, said: “This is a ‘win win’ situation. The employees of Higher Kings will become part of an expanding company specialising in the mill’s products and markets, while DS Smith Paper sharpens its focus on the packaging industry as a key part of DS Smith’s strategy to deliver higher returns on capital with reduced cyclicality.”

DS Smith Plc (DS Smith) announces that its DS Smith paper business has entered into a binding legal agreement for the sale of its Higher Kings Mill paper mill in the United Kingdom to Asia File Corporation Berhad, for an enterprise value of £4.6 million payable in cash on completion. As at 30 April 2011, the net assets of the Higher Kings Mill business (on a cash and debt free basis) were £3.8 million and gross assets were £8.0 million. Higher Kings Mill is a leading European producer of filing and educational papers, producing 34 thousand tonnes of paper per annum. The sale is expected to be completed on 30 September 2011.

This transaction marks a further development in the execution of DS Smith’s strategy to focus on recycled packaging for consumer goods and to reduce paper manufacture that does not directly support the packaging business. This transaction follows the announcement on 23 June 2011 of the intention to close the Hollins paper mill, which produces 95 thousand tonnes per annum. This reduction in DS Smith’s exposure to paper manufacturing will help DS Smith achieve its goal of delivering higher returns on capital with reduced cyclicality.

One of the country's largest recycling facilities has been given the green light to power its operations with a new Sustainable Energy Plant.

The permit from the Environment Agency will enable Kemsley Mill to reduce its reliance on fossil fuels and to generate heat and electricity from up to 550,000 tonnes of pre-treated waste a year that might otherwise go to landfill.

Kemsley Mill, DS Smith Paper

Kemsley Mill, which is owned by DS Smith Paper, is the largest waste paper recycler in the UK, producing more than 850,000 tonnes of 100 per cent recycled paper and pulp a year.

The Environment Agency decision to grant the permit follows the unanimous backing of the application for the proposed plant, received when it went before Kent County Council's planning committee in April.

"Using waste that can't practicably be recycled to help fuel the recycling of nearly a quarter of the paper recycled in the UK fits well with our long-term strategy to develop an environmentally sustainable business," said DS Smith Paper Commercial Director Will Faure-Walker.

"As the country's largest recycler of waste paper, Kemsley Mill already has strong environmental credentials, with every tonne of paper recycled rather than sent to landfill saving the emission of 900kg (0.9 tonnes) of carbon dioxide.

"The proposed Sustainable Energy Plant will strengthen the recycling loop, further enhance our environmental performance and result in a 200,000-tonne net reduction in carbon dioxide emissions a year, equivalent to taking more than 90,000 cars off the road."

It is hoped that construction of the new Sustainable Energy Plant will begin in spring 2013, with completion scheduled for 2016. The plant will be developed and operated by E.ON and Wheelabrator Technologies.

Metso will supply a major board machine rebuild for the Kemsley mill of DS SmithPaper in the United Kingdom. The start-up of the rebuilt BM 3 board machine is scheduled for the second quarter of 2012. The value of the order will not be disclosed.

Metso's delivery will include rebuilds of the forming, press and dryer sections. Additionally, Metso’s delivery will comprise a new ValSizer film sizer and a new ValSoft softnip calender. Metso’s scope also includes all installation work related to the rebuild. The rebuild will help the Kemsley mill ensure their top-quality board production. The BM 3 board machine produces high-quality testliners, and some specialty board grades in the basis weight range of 120 to 220 g/m².

DS SmithPaper is an international supplier of recycled packaging and Europe’s leading office products wholesaler with a turnover of about EUR 2.4 billion per annum and over 12,000 employees. DS SmithPaper operates in a number of countries in Europe, and also in the USA, Australia and New Zealand.

source: metso pulp and paper

DS Smith Plc, the international supplier of recycled packaging for consumer goods, today issues its pre-close statement for the full-year to 30 April 2011.

DS Smith Group
The encouraging overall trading reported in our IMS of 10 March 2011 has continued, with further strong volume growth driven by our focus on the resilient fast moving consumer goods sector.

The year to 30 April 2011 is progressing in line with expectations for good improvements in return on sales and return on capital, with significant EPS growth. This reflects the continued benefit of our focus on service, quality and innovation to our customers. While we have seen the anticipated further input cost increases come through in the final quarter of the year, these costs are being recovered successfully.

Packaging
Our corrugated packaging businesses have experienced further strong underlying volume growth of around 8% in the year to date. The phased recovery of input cost increases continues in line with our strategy to achieve a shorter recovery period. The re-branding of our UK businesses, aligned under the DS Smith name for the first time, is currently underway. Our operations in France, including the Otor operations are now together under one brand, DS Smith Packaging France.

The performance of the Plastics business continues to be good, with strong volume growth, cost control and recovery of input costs.

Office Products Wholesaling
The trading performance at Spicers has continued satisfactorily. Profit improvement is expected to be good, due to continued growth in continental Europe and decisive cost control actions in the UK.

Outlook
DS Smith has strong foundations, a disciplined approach to capital allocation and cost control with attractive growth opportunities within the UK, France and Central and Eastern Europe as corrugated packaging outperforms other materials on ease of recycling.

In respect of the coming financial year, the Group expects to continue to make further progress towards its financial objectives – being sales volume growth over 3%, return on sales between 6% and 8% and return on average capital employed between 12% and 15%. This progress is a result of the successful integration of Otor combined with the continued implementation of our strategy.

DS Smith Plc (“DS Smith”), the international supplier of recycled packaging for consumer goods and office products wholesaling business, announces its results for the six months to 31 October 2010.

Miles Roberts, Group Chief Executive, said:

“These results reflect the strong volume and revenue growth in the recycled packaging business, driven by our revised strategic focus on customer service, innovation, quality and reducing the environmental impact of our product. This focus has allowed us to recover the significant increases in the cost of our raw materials and energy, and maintain our margins despite the usual three to six month delay. On 1 September 2010 we completed the acquisition of Otor, a leading supplier of recycled corrugated packaging in France. Integration is proceeding well and post acquisition trading performance of this business has been ahead of our initial expectations.

The review of business strategy has confirmed the exciting growth potential from focusing our efforts on delivering retail-ready, recycled packaging which helps build sales and reduce costs for our FMCG customers. We have identified attractive opportunities within the UK and France and also see very significant potential in the faster growing FMCG markets in Central and Eastern Europe. Corrugated packaging has growth prospects ahead of GDP and outperforms other materials on ease of recycling.

Notwithstanding continued increases in input costs, trading in the second half to date is progressing well. We look forward to the remainder of the year with confidence, delivering in line with our expectations.”

For the full report please download the attachment below

DS Smith Plc, the international packaging supplier and office products wholesaler, today issues its pre-close statement for the half-year to 31 October 2010.

DS Smith Group
The encouraging overall trading reported for our first quarter has continued into the second quarter, with volumes continuing to be good. There has been no significant change to the financial position of the Group since our IMS of 7 September 2010.

Packaging
Our Paper and Corrugated Packaging businesses have maintained robust volume growth. Throughout the first half we have seen increases in input costs. Our phased recovery of those costs has continued fully in line with our plans, backed up by the service, innovation and quality of our product offering. Trading at Otor has been as expected, and integration work is progressing well.

Plastics have also continued to develop positively, with good volume growth and cost control.

Office Products Wholesaling
The trading performance at Spicers has continued satisfactorily.

Outlook
The year is progressing in line with expectations. The half-year results are expected to show a strong improvement on the comparable period for last year. We look forward to the remainder of the year with confidence due to our continued focus on FMCG, and greater presence in Europe, with service, quality and innovation at the centre of our product offering.

Forthcoming Dates
Results for the half-year to 31 October 2010, including 9 December 2010 conclusions from the review of business strategy.

Enquiries

DS Smith Plc
+44 (0)1628 583 400
Miles Roberts, Group Chief Executive
Steve Dryden, Group Finance Director
Rachel Stevens, Head of Investor Relations

Tulchan
+44 (0)20 7353 4200
John Sunnucks
David Allchurch
Matthieu Roussellier

DS Smith Plc (“DS Smith” or “the Group”), the international packaging supplier and office products wholesaler, today publishes its Interim Management Statement in respect of the period since 1 May 2010. DS Smith will be holding its Annual General Meeting today at 12 noon.

DS Smith Group
Overall trading in the first quarter of financial year 2010/11 has been encouraging, with good volume growth throughout the group. This is led from progress in the FMCG (Fast Moving Consumer Goods) sector driven by our focus on service, innovation and efficiency.

Packaging
Our Paper and Corrugated Packaging businesses have had a good first quarter with positive demand trends, in Europe and the UK, feeding through to increased volumes. The anticipated phased recovery of paper price increases has led to profits in line with our expectations. Plastics have also had an encouraging start to the year with good volume growth and cost control.

Office Products Wholesaling
The trading performance at Spicers is ahead of last year with profitability increasing due to better product mix. The focus remains on improving mix and on tight cost control to ensure Spicers leverages its strong market positions to take advantage of improving economic conditions.

Business Review
The review of our business strategy is making considerable progress. As set out in June this year, our aims are to create a growing business that is more focused, producing higher margins and returns with less cyclicality. We expect to announce our conclusions at the time of our half-year results on 9 December this year.

Acquisition of Otor
On 7 July 2010 the acquisition of Otor for €247m was announced and completion took place, earlier than planned, on 1 September 2010.

As set out at the time of announcement of the acquisition, we expect Otor to be accretive, before exceptional costs, to both earnings and margins in the first full financial year of ownership, with a return on investment above DS Smith’s weighted average cost of capital.

The integration teams are established and the work is proceeding well to realise annual cost synergies of €9.3 million in the second full financial year of ownership. Combining Otor’s successful, well-established, FMCG focused corrugated packaging business with our existing French operations will create a platform for further revenue opportunities across the wider European market.

Save for the acquisition of Otor as described above, there has been no significant change to the financial position of the Group since the publication of the results for the full year to 30 April 2010.

Pension
We have started consultation with the remaining active employee members of the Group’s UK defined benefit pension scheme with a view to closing the scheme to future accrual. This will help the Group better manage this exposure in the future.

Outlook
The year is progressing in line with expectations underpinned by continued FMCG demand and we continue to grow our business through our continuous focus on innovation and servicing the customer. We look forward to the remainder of the year with confidence.

Enquiries
DS Smith Plc
+44 (0)1628 583 400
Miles Roberts, Group Chief Executive
Steve Dryden, Group Finance Director
Rachel Stevens, Head of Investor Relations

Tulchan
+44 (0)20 7353 4200
John Sunnucks
David Allchurch
Matthieu Roussellier

The Board of DS Smith has announced that it has submitted a binding offer for the proposed acquisition of Otor, a leading corrugated packaging company in France (the "Proposed Acquisition").

The Otor Group consists of Otor S.A., the shares of which are listed on NYSE Alternext Paris, and Otor Finance, a holding company for The Carlyle Group (“Carlyle”) which owns and controls 94.75 per cent. of Otor S.A. The remaining 5.25 per cent. of the shares of Otor S.A. are in free float on NYSE Alternext Paris.

Under the terms of the binding offer, DS Smith intends to acquire control of more than 95 per cent. of the share capital of Otor from entities controlled by Carlyle, from Credit Lyonnais ("LCL") and from the chairman of Otor S.A. before making a mandatory offer for the remaining shares of Otor S.A. (the “Minority Offer”) in accordance with French stock exchange regulations. The total consideration for the Proposed Acquisition, including the Minority Offer, of €247 million (approximately £206 million), will be in cash and the assumption of existing debt, equivalent to an all cash offer of €8.97 per Otor S.A. share. Under French regulations a minority squeeze out can be achieved with a shareholding representing 95 per cent. of the shares and voting rights. More details on the proposed acquisition structure can be found later in this announcement.

The parties' intention is to inform Otor's group works council and to execute the relevant documentation as soon as possible.

To read the full report please download the PDF attachment.

DS Smith Plc, the international packaging and office products wholesaling company, announces its results for the year ended 30 April 2010.

Highlights
• Robust performance in challenging markets
• Revenue £2,070.6 million (£2008/09: £ 2,106.6 million)
• Adjusted EBITDA up 1.3% to £166.0 million
• Adjusted earnings per share up 2.4% to 12.9 pence
• Strong cash flow generation drives net debt down £52.0 million to £239.5 million
• Full year dividend increased by 4.5% to 4.6 pence per share
• Successful implementation of 2008/09 cost reduction plan
• The Group has continued to build its market position in corrugated packaging for the fast-moving consumer goods sector across Europe
• Review of strategy and business operations launched by new Group Chief Executive

Commenting on the results, Chairman, Peter Johnson said: “In 2009/10 we improved earnings and delivered strong cash flow, gaining share in all our main packaging markets. This robust performance sets a good platform from which we will develop and grow the Group. I am delighted to welcome Miles Roberts to the Group as our new Chief Executive. His skills and experience are ideally suited to taking advantage of the opportunities we see and I look forward to working with him.”

Miles Roberts, Group Chief Executive said: “Since joining DS Smith in May 2010, I have visited many parts of the Group and its customers. This has confirmed my view that there is significant potential within DS Smith. Our objective is to create a growing business that is more focused, producing higher margins and returns with less cyclicality. The plan to achieve this objective will be completed over the coming months. Trading in the current financial year has started well and is in line with our expectations. We are experiencing increasing sales volumes due to the continuing recovery in market conditions. We are also benefiting from the success of our service and product offering.”

For the full report download is below, follow the link......>