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Smith(DS) PLC (SMDS)

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daveh
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Smith(DS) PLC (SMDS)

#206426

Postby daveh » March 8th, 2019, 11:09 am

Now that you can do links to more companies again in the sticky post. Here is a link to an update from SMDS re the sale of the plastics business and a trading update:

http://www.investegate.co.uk/article.as ... 9541R&fe=1

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Re: Smith(DS) PLC (SMDS)

#215562

Postby daveh » April 17th, 2019, 8:18 am

Disposal of packaging businesses in France and Portugal - required by European Commission to clear the purchase of Europak:

www.investegate.co.uk/article.aspx?id=2 ... 4136W&fe=1

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Re: Smith(DS) PLC (SMDS)

#218323

Postby idpickering » April 30th, 2019, 7:23 am



DS Smith Plc - Pre-close trading statement

30 April 2019

DS Smith today issues a pre-close trading update in respect of the year ending 30 April 2019.

Trading update

Our financial performance has continued in line with our expectations. We have seen ongoing growth in corrugated box volumes and market share gains, driven by our resilient FMCG-focused customer base and strong position in the e-commerce packaging market. All regions have been in growth, with particular strength in the UK, Italy and Poland, partially offset by some volume weakness in certain export-led markets, including


https://www.investegate.co.uk/smith--ds ... 00104726X/

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Re: Smith(DS) PLC (SMDS)

#229099

Postby idpickering » June 13th, 2019, 7:11 am


idpickering
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Re: Smith(DS) PLC (SMDS)

#229232

Postby idpickering » June 13th, 2019, 2:24 pm

This from TMF written by Roland Head;

A FTSE 100 growth and dividend stock I’d buy and hold forever

A strong performance

FTSE 100 cardboard packaging specialist DS Smith (LSE: SMDS) is a relatively new investment for me, as I only bought the shares earlier this year. But I’ve been following the stock for a while and believe there’s a good long-term story here.

Figures released today show that the company’s steady growth continued last year. Sales rose 12% to £6,171m during the year to 30 April, while pre-tax profit climbed 35% to £340m.


https://www.fool.co.uk/investing/2019/0 ... forever-3/

I hold these, having only bought into the firm on 22 May 19.

Ian.

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Re: Smith(DS) PLC (SMDS)

#233046

Postby daveh » July 1st, 2019, 8:34 am

Completion of disposal.

following the fulfilment of all closing conditions, it completed on 28 June 2019 the sale of two packaging businesses in North Western France and Portugal to International Paper (NYSE: IP) for €63 million (c. £56 million).

For details see;


www.investegate.co.uk/article.aspx?id=2 ... 9220D&fe=1

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Re: Smith(DS) PLC (SMDS)

#233485

Postby Bouleversee » July 2nd, 2019, 6:24 pm

idpickering wrote:This from TMF written by Roland Head;

A FTSE 100 growth and dividend stock I’d buy and hold forever

A strong performance

FTSE 100 cardboard packaging specialist DS Smith (LSE: SMDS) is a relatively new investment for me, as I only bought the shares earlier this year. But I’ve been following the stock for a while and believe there’s a good long-term story here.

Figures released today show that the company’s steady growth continued last year. Sales rose 12% to £6,171m during the year to 30 April, while pre-tax profit climbed 35% to £340m.


https://www.fool.co.uk/investing/2019/0 ... forever-3/

I hold these, having only bought into the firm on 22 May 19.

Ian.


I was considering buying SMDS around this time (as RPC are due to drop out of my p/f as a result of takeover) but as the price was falling then I intended to keep an eye on it and see which way the wind was blowing. This is an example of my not paying attention, being diverted to other matters and now my attention has been drawn again I am again chewing it over. They seem to be on an upward trend, with a reasonable dividend and p/e but I need to do more research. I see they are still way below their s.p. of a year ago. Does anyone know why they dropped so much then, having bad a steady upward movement up till then and are there any views as to whether whatever issues caused the big drop have now been resolved? One would have thought that carboard packaging as opposed to plastic would have been inreasingly in demand at that time.

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Re: Smith(DS) PLC (SMDS)

#233499

Postby PinkDalek » July 2nd, 2019, 6:58 pm

Bouleversee wrote:... They seem to be on an upward trend, with a reasonable dividend and p/e but I need to do more research. I see they are still way below their s.p. of a year ago. Does anyone know why they dropped so much then, ...


The June 2018 fall was at the time of:

Announcement re: Rights Issue
RNS Number : 8205R
Smith (DS) PLC
19 June 2018

... FULLY UNDERWRITTEN RIGHTS ISSUE RAISING PROCEEDS OF c. £1,000 MILLION TO PART FUND THE ACQUISITION OF EUROPAC


... Today, DS Smith announces a fully underwritten rights issue, which is intended to raise proceeds of approximately £1,000 million (approximately €1,148 million) net of expenses, to be used to fund the Acquisition (the "Rights Issue").

The Rights Issue will result in the issue of 293,064,829 new ordinary shares (representing approximately 27.3 per cent. of the existing issued share capital of DS Smith and 21.4 per cent. of the enlarged issued share capital immediately following completion of the Rights Issue) (the "New Shares"). The Rights Issue will be on the following basis:

3 for 11 Rights Issue at 350 pence per New Share.


https://www.investegate.co.uk/smith--ds ... 16028205R/

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Re: Smith(DS) PLC (SMDS)

#233530

Postby Bouleversee » July 2nd, 2019, 8:48 pm

Many thanks, PD. I need to go and water the garden so will have to leave it till tomorrow to try to work out whether or not that was a good offer to have taken up and how it compared, for instance, with the recent M&S rights offer. More to the point, what did the market make of that acquisition and how is it working out, I wonder? I know nothing about Europac.

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Re: Smith(DS) PLC (SMDS)

#233569

Postby idpickering » July 3rd, 2019, 6:12 am

Bouleversee wrote:Many thanks, PD. I need to go and water the garden so will have to leave it till tomorrow to try to work out whether or not that was a good offer to have taken up and how it compared, for instance, with the recent M&S rights offer. More to the point, what did the market make of that acquisition and how is it working out, I wonder? I know nothing about Europac.


Hi Lorna, my thanks to PD too. With regards to Europac, I'm not certain either, but irrespective of that issue, I bought into SMDS because I could see that they came across as a well run outfit, offered further diversification to my HYP, a decent yield, with a well covered dividend, from a seemingly boring firm/operation, and that ticks a lot of boxes for me.

Ian.

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Re: Smith(DS) PLC (SMDS)

#233598

Postby daveh » July 3rd, 2019, 9:14 am

Bouleversee wrote:Many thanks, PD. I need to go and water the garden so will have to leave it till tomorrow to try to work out whether or not that was a good offer to have taken up and how it compared, for instance, with the recent M&S rights offer. More to the point, what did the market make of that acquisition and how is it working out, I wonder? I know nothing about Europac.



I took up the rights in july last year at 350p. The price held up above 480p until 3rd October, well beyond the rights issue period before falling to below 300p by the end of the year. With my hindsight glasses on ( or if my crystal ball was working) I'd have been better letting the rights lapse and buying at the end of December, or very early in January at 300p, but I didn't. Price has been flat/slightly rising since the beginning of the year and as of yesterday was at 365p (according to my spreadsheet) so back ahead of the rights issue price.


I think the company is well run, packaging should be a good area if we are all buying more via the internet and they have sold the plastics bussiness at what may turn out to be a good time. They have previously been very successful at integrating previous aquisitions including a big purchase in 2012* which they also funded via a rights issue. i let that one lapse as my recollection is that I didn't have sufficient cash available to take it up. I'm not sure why the price has fallen this year, I don't recall any RNS's saying there were problems with the integration of Europac or profits, in fact I thought everyting was going well from the RNS's. I hadn't noticed the price falls, but SMDS is already a full holding as it has done so well for me and the yield is good if not spectacular so its doesn't appear as a top in HYPTUSS, so I don't follow the price action as it is not a likely purchase.


Its shown an XIRR of 28%pa total return since I first bought in 2008 so I'm happy.

* from memory, I haven't checked the reason for the 2012 rights issue

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Re: Smith(DS) PLC (SMDS)

#233606

Postby kempiejon » July 3rd, 2019, 9:31 am

I first bought SMDS back in 2006/7, shortly before they cut their dividend from 5.52p to 2.82p at the time I was understandably miffed to see my income near half so soon after I committed my cash, still DS Smith weren't my only holding to suffer like that. I'm pretty sure though that SMDS were the first firm to established their dividend back to pre cut levels, I've checked the records and it looks like 4 or 5 years after the cut my income was restored. There have been a couple of rights issues since my initial buy and I sold my first holding to move the cash in my ISA and subsequently re-bought so my initial investment is too confused with other holdings to check a proper return but the dividend income is now 3 times that of my first year of holding.

https://www.dividenddata.co.uk/dividend ... ?epic=SMDS

For those buying income the yield now is better than it's been for the past few years

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Re: Smith(DS) PLC (SMDS)

#233609

Postby Bouleversee » July 3rd, 2019, 9:39 am

Many thanks. I wondered if that might be the case and I wouldn't be surprised if the same thing happens at M&S. I think I will risk a purchase of SMDS. I had resolved to only buy ITs in future but as RPC will disappear I won't actually be adding to the large no. of my holdings. Having on paper lost about half the value of my WPCT holding, my enthusiasm for ITs has dimmed somewhat.

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Re: Smith(DS) PLC (SMDS)

#248828

Postby idpickering » September 3rd, 2019, 7:03 am

Trading Statement.

Trading update

The business continues to progress well despite, as expected, continued macro-economic uncertainty, and our expectations for overall financial performance remain unchanged.

Our excellent customer engagement and differentiators of scale, service, quality and innovation, have enabled strong pricing discipline. This, combined with ongoing operating cost efficiencies and focus on cashflow generation, together with new business wins in Europe and the US, gives us confidence in our resilient business model despite ongoing subdued volumes in some markets, in particular those economies with significant export-led market exposure, including Germany.


https://www.investegate.co.uk/smith--ds ... 00109732K/

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Re: Smith(DS) PLC (SMDS)

#261290

Postby idpickering » October 31st, 2019, 1:38 pm

Pre-close statement here; https://www.investegate.co.uk/smith--ds ... 00047042R/

For general chat. Also on HYP Practical for HYPers.

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Re: Smith(DS) PLC (SMDS)

#269184

Postby idpickering » December 5th, 2019, 7:17 am

2019/20 HALF YEAR RESULTS here; https://www.dssmith.com/contentassets/9 ... elease.pdf

Also on HYP Practical for HYPer chat.

Ian.

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Re: Smith(DS) PLC (SMDS)

#269220

Postby dealtn » December 5th, 2019, 9:59 am

Not one that I have studied though not particularly expensive, however what concerns me is the relatively paltry organic growth. At a macro level you would think with a society more aware of the issues with plastic packaging SMDS would be benefitting from a move to more "paper based" alternatives. Similarly in a world where "clicks" are replacing "bricks" packaging volumes should be rising too.

Across the whole growth is minimal, and in some regions in particular growth is negative. The growth has been "bought" through the Europac transaction. No doubt further synergies are sought here but somewhat concerning initially that the new business has a lower return on capital than the existing, but still early days to meaningfully judge this.

Cash flows aren't a concern, but don't scream buy either. This is a business with a lot of capital expenditure on an annual basis.

Not expensive but plenty of other possible investments would be seen as more attractive than this. Might come on my radar should the price pull back further I suppose.

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Re: Smith(DS) PLC (SMDS)

#285557

Postby idpickering » February 20th, 2020, 7:40 am

Sale of Plastics Division Update

DS Smith is pleased to announce that the U.S. Department of Justice has entered into a consent decree clearing the way for the completion of Olympus Partners and its affiliate Liqui-Box Holdings' pending acquisition of DS Smith's Plastics division. The consent decree is now subject to the required U.S. federal court ratification, which is the final part of that process and we expect the transaction to complete promptly thereafter.


https://www.investegate.co.uk/smith--ds ... 00075288D/

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Re: Smith(DS) PLC (SMDS)

#288387

Postby daveh » March 4th, 2020, 8:21 am

Trading statement cane be found here:

https://www.investegate.co.uk/smith--ds ... 00039156E/

Trading continues to progress well despite macro-economic uncertainty. Group like-for-like corrugated box volume growth has increased during the second half of our financial year, as expected, with good performances in Iberia, Eastern Europe and the UK. It has been especially pleasing to see the ex-Europac packaging operations performing well and our leading FMCG and e-commerce businesses growing strongly over the important Christmas period, although countries with exposure to export led markets, including Germany, continue to remain subdued.

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Re: Smith(DS) PLC (SMDS)

#288483

Postby dealtn » March 4th, 2020, 2:52 pm

daveh wrote:Trading statement cane be found here:

https://www.investegate.co.uk/smith--ds ... 00039156E/

Trading continues to progress well despite macro-economic uncertainty. Group like-for-like corrugated box volume growth has increased during the second half of our financial year, as expected, with good performances in Iberia, Eastern Europe and the UK. It has been especially pleasing to see the ex-Europac packaging operations performing well and our leading FMCG and e-commerce businesses growing strongly over the important Christmas period, although countries with exposure to export led markets, including Germany, continue to remain subdued.


A little light on detail (as normal for what is just a trading statement) but good to see my concerns (see above) about poor like-for-like growth being tempered.


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