Smith(DS) PLC (SMDS)

[idpickering]

The above seems to have been well received, with the SMDS SP being up just under 8% as I type.

Ian.

[Bouleversee]

Up 12.55% now, Ian. What a difference a day makes!

[idpickering]

Up 12.55% now, Ian. What a difference a day makes!

I hear you Lorna, and I hope you're well.

I used to hold SMDS until about the time COVID19 hit us. They cancelled their dividend about then if I recall rightly, hence my dumping them at that time?

Serves me right I guess, because I've missed out on today's nice SP rise, but I'm not going to stress about it.

Look after yourself,

Ian.

[Bouleversee]

I think you did the right thing, Ian, especially if you put the dosh somewhere productive, though the mistake may have been not to buy back in at the bottom, but that's hindsight. How do we ever know where the bottom is and I should have thought they would have done better during Covid than now. I, OTOH, bought in 2019 (two lots) and June 2020, and didn't top up when they had dropped a lot either and even after today's meteoric rise (amazing since they went x-d some days ago) am still losing 21.05%. So was that low point all down to shorters? I have given up trying to understand the market.
However, sufficient dividends continue to roll in to keep me going and this afternoon I finally managed to get someone to give me an acceptable quote for cutting my extensive hedges so provided they turn up on Sat. week, I am a happy bunny.

[BullDog]

SMDS's been an absolute steal recently. Not one I want to hold forever, out at >400p and back in again at <300p for me will do quite nicely. Happy to take the dividends while I wait for >400p again.

[Steveam]

https://www.proactiveinvestors.co.uk/co ... 94870.html

Best wishes,

Steve

[Steveam]

https://moneyweek.com/investments/stock ... ndervalued

Best wishes,

Steve

[monabri]

https://www.telegraph.co.uk/business/20 ... se-prices/

"Almost 1,000 members of the GMB Union at DS Smith, which also makes packaging for Brewdog, Diageo and McVities, voted for industrial action in a row over pay.Workers in five sites – Louth, Lincolnshire, Featherstone, in Yorkshire, Clay Cross, in Derbyshire, Devizes, in Wiltshire and Livingston, in Scotland – could take part in the strike, as early as the end of the month.

DS Smith has tabled an offer of a 3pc consolidated increase plus a non-consolidated payment of £760 for 2022-23. However, the union said this represented a "massive" real-terms pay cut. "

[Arborbridge]

https://www.telegraph.co.uk/business/2022/11/07/ftse-100-markets-live-news-tax-autumn-budget-steel-house-prices/

"Almost 1,000 members of the GMB Union at DS Smith, which also makes packaging for Brewdog, Diageo and McVities, voted for industrial action in a row over pay.Workers in five sites – Louth, Lincolnshire, Featherstone, in Yorkshire, Clay Cross, in Derbyshire, Devizes, in Wiltshire and Livingston, in Scotland – could take part in the strike, as early as the end of the month.

DS Smith has tabled an offer of a 3pc consolidated increase plus a non-consolidated payment of £760 for 2022-23. However, the union said this represented a "massive" real-terms pay cut. "

Despite that trouble on the horizon, the share price is rising today.

[idpickering]

Half-year Report.

Miles Roberts, Group Chief Executive, commented:

"The performance during this six month period has been strong, benefiting from our constant focus on our customers' evolving needs during this time of significant economic volatility. This has enabled us to achieve continued market share gains, an increase in profitability and improvements in our key financial performance ratios. We are particularly pleased with the performance of the Southern Europe region that continues to deliver major benefits from the acquisition of Europac in 2019.

The macro-economic outlook for the rest of the financial year remains challenging. However, we have an excellent customer base, efficient high quality assets, dedicated colleagues and a strong balance sheet allowing continued organic investment to support our customers. These benefits, combined with current momentum in the business, mean we now expect FY23 performance to be ahead of previous expectations with H2 being consistent with H1."

And later;

Dividend

The Board considers the dividend to be an important component of shareholder returns. As first set out in December 2010, our policy is that dividends will be progressive and, in the medium term, dividend cover should be on average 2.0x to 2.5x through the cycle. In considering future dividends the Board will continue to be mindful of the Group's earnings growth potential, future expansion and leverage.

The Board declares an interim dividend of 6.0 pence per share in light of the strong business performance, building on the robust position of the second half of the previous year. The dividend will be paid on 31 January 2023 to ordinary shareholders on the register at close of business on 16 December 2022.

https://www.investegate.co.uk/smith--ds ... 00049818I/

Ian.

[spiderbill]

DS Smith to close Kent factory as it pushes ahead in Europe
https://www.ft.com/content/349072ab-b503-4d73-8e95-75b90c195e24?desktop=true&segmentId=d8d3e364-5197-20eb-17cf-2437841d178a#myft:notification:instant-email:content

[csearle]

DS Smith to close Kent factory as it pushes ahead in Europe
https://www.ft.com/content/349072ab-b503-4d73-8e95-75b90c195e24?desktop=true&segmentId=d8d3e364-5197-20eb-17cf-2437841d178a#myft:notification:instant-email:content

Oh I think I know that place. It is just before the bridge over to the Isle of Sheppey. This news will be a blow to the local economy there. C.

[idpickering]

Q3 trading statement

Continued strong trading in line with management expectations

· The positive trends in profitability experienced in H1 have continued into H2 with the financial performance in line with our expectations

· We have continued to take market share, driven by our strategic focus on resilient sectors such as food and drinks, although like for like corrugated box volumes during H2 have been lower than the comparative period with market weakness and evidence of de-stocking over Christmas and New Year

· Our robust and flexible supply chain, together with ongoing cost management initiatives and resilient pricing, have more than offset the lower volumes, driving further margin progression, strong profit growth and improvement in our return on capital.

https://www.investegate.co.uk/smith--ds ... 00043591S/

Ian ( No holding).

[daveh]

Trading statement (pre close)
https://www.investegate.co.uk/smith--ds ... 00046029X/

DS Smith Plc - Pre-close statement



DS Smith Plc ("DS Smith") today issues a pre-close trading update in respect of the year ending 30 April 2023.



Continued profitable growth

· Strong growth in profitability and financial performance, continuing the trends we described on 9 March 2023 and in line with our expectations.

· Expected adjusted EBITA for FY23 in the range of £850 - £860 million.

· Excellent customer relationships, and our high levels of service, product innovation and sustainability focus have driven resilient packaging prices during the period.

· Combined with good cost management, this has more than offset the weaker than expected volumes to deliver growth in profitability and delivery in line with our medium-term financial targets.

· Continued strong free cash flow performance for the full year, leading to an expected reduction in our net debt / EBITDA leverage ratio to approximately 1.3 times as at 30 April 2023 (1.6 times at 30 April 2022).

Looks like the results should be good going by this trading statement.

[idpickering]

Final Results.

· Excellent adjusted operating profit growth of 35% driven by improved product "added value" and effective cost mitigation more than offsetting volume declines and a more challenging inflationary environment

· Strengthening customer relationships driving record customer ratings and contract wins

· Good free cash flow of £354m(8) reducing leverage to 1.3x net debt/EBITDA (2021/22: 1.6x)

· Continued momentum in plastic replacement with 762 million units of plastic replaced since 2020 and 297 million in 2022/23

· Further improvements in sustainability metrics and ESG ratings

· Continued investment in innovation, capacity, efficiency and environmental projects

· Current trading in line with our expectations

https://www.investegate.co.uk/announcem ... ts/7587561

Ian (No holding).

[Steveam]

Dividend
The Board considers the dividend to be an extremely important component of shareholder returns. Today, we are announcing a final dividend of 12.0p per share, taking the total dividend for this year to 18.0 pence per share, an increase of 20 per cent and consistent with our policy of 2.0-2.5 times dividend cover over the medium-term.

Subject to approval of shareholders at the AGM to be held on 5 September 2023, the final dividend will be paid on 3 October 2023 to shareholders on the register at the close of business on 8 September 2023.

Best wishes, Steve

[88V8]

Dividend...the total dividend for this year to 18.0 pence per share, an increase of 20% ...

and a yield currently exceeding 6%, very nice too.

V8 (I hold)

[tjh290633]

Dividend...the total dividend for this year to 18.0 pence per share, an increase of 20% ...

and a yield currently exceeding 6%, very nice too.

V8 (I hold)

And naturally the price continues to fall.

TJH

[daveh]

Green Bond Issuance
https://www.investegate.co.uk/announcem ... ce/7659051

S Smith Plc, the leading supplier of sustainable packaging, has successfully launched and priced EUR 850,000,000 Notes due 27 July 2027 with a coupon of 4.375% and EUR 650,000,000 Notes due 27 July 2030 with a coupon of 4.5%, (together "the Notes"), pursuant to its Euro Medium Term Note Programme.

An amount equal to the net proceeds of the issuance of the Notes will be used to finance or refinance eligible activities in accordance with DS Smith's green finance framework. The net proceeds of the issuance of the Notes may be used, in whole or in part, to refinance existing indebtedness, including the 1.375% notes due July 2024 (the "2024 Notes"), and the issuance will significantly extend the tenure of the DS Smith Group's borrowings.

Why would you replace bonds with a coupon of 1.375% with bonds with a coupon of 4.375-4.5% ~12 months earlier than you need to (other than extending the term of the debt by 6 years?

[dealtn]

Green Bond Issuance
https://www.investegate.co.uk/announcem ... ce/7659051

S Smith Plc, the leading supplier of sustainable packaging, has successfully launched and priced EUR 850,000,000 Notes due 27 July 2027 with a coupon of 4.375% and EUR 650,000,000 Notes due 27 July 2030 with a coupon of 4.5%, (together "the Notes"), pursuant to its Euro Medium Term Note Programme.

An amount equal to the net proceeds of the issuance of the Notes will be used to finance or refinance eligible activities in accordance with DS Smith's green finance framework. The net proceeds of the issuance of the Notes may be used, in whole or in part, to refinance existing indebtedness, including the 1.375% notes due July 2024 (the "2024 Notes"), and the issuance will significantly extend the tenure of the DS Smith Group's borrowings.

Why would you replace bonds with a coupon of 1.375% with bonds with a coupon of 4.375-4.5% ~12 months earlier than you need to (other than extending the term of the debt by 6 years?

Not unusual (especially for a net indebted company) to resolve cliff edge refinancing as early as this.