Proactiveinvestors United Kingdom - Forestry & Paper RSS feed Proactiveinvestors United Kingdom - Forestry & Paper feed en Sat, 20 Jan 2018 11:21:15 +0000 Genera CMS DS Smith sees strong volume, revenue growth in first half, although profits fall slightly Thu, 07 Dec 2017 09:37:00 +0000 DS Smith says it has made “an encouraging start to the year" with trading in line with expectations Tue, 05 Sep 2017 08:31:00 +0100 DS Smith expands in America with US$920mln acquisition of 80% of Interstate Resources Thu, 29 Jun 2017 09:40:00 +0100 James Cropper's shares gain as the paper manufacturer lifts full year guidance Wed, 22 Mar 2017 10:38:00 +0000 Powerflute's Smurfit brothers to make £65mln from Madison Dearborn bid Thu, 15 Sep 2016 12:45:00 +0100 Canfor's shares fall on Q2 results as lower prices, output weigh Fri, 25 Jul 2014 11:32:00 +0100 DS Smith shares rise after strong full-year results Shares in DS Smith (LON:SMDS) rose in early trade after the packaging and office product wholesaler reported strong results for the full-year to the end of April 2012.

Revenue rose 12 percent year-on-year to £1.97 billion, and was up 8 percent on a like-for-like basis, while pretax profit soared to £110.2 million from £76.7 million a year earlier.

By 10 am, the stock was trading up 2.7 percent at 140 pence.

The full year benefits from its acquisition in 2010 of French peer Otor acquisition are ahead of original plans, and during the current year it plans to fully integrate Swedish firm SCA Packaging which it recently acquired.

Chief executive Miles Roberts said: "The economic conditions across Europe remain challenging. DS Smith is positioned to perform well in this environment, due to our resilient customer base, the opportunity for substantial cost and cash synergies as previously announced, and our track record of delivering sustainable returns in challenging market conditions.

“Accordingly, the board views the prospects for the enlarged group in the coming year with confidence and expects to make continued progress," he added.

Thu, 28 Jun 2012 10:06:00 +0100
DS Smith to buy SCA Packaging for £1.3 bln, shares rise DS Smith (LON:SMDS) has announced a deal worth €1.6 billion, or £1.3 billion, to acquire Swedish peer SCA Packaging to create a leading supplier of recycled packaging for consumer goods in Europe.

The company is planning to finance the deal through a mix of cash, debt and a fully underwritten 9-for-8 rights issue, the latter of which is to contribute approximately £466 million.

The stock rose in reaction to the news, and by 9.40 am, was up 4.8 per cent at 213.40 pence.

The acquisition is expected to be substantially earnings enhancing in the first full financial year with further improvement expected in the second and third full financial years following completion.

SCA Packaging is part of Sweden's Svenska Cellulosa Aktiebolaget (SCA) and is the second largest packaging business in Europe with around 12,000 staff and sales of €2.5 billion in 2010.

DS Smith has convened a shareholder meeting to vote on the acquisition for February 3. 2012.  Standard Life, which holds a 14.6 per cent stake, is backing the acquisition, it said.

The deal is currently expected to close during the second quarter of 2012.

Tue, 17 Jan 2012 08:42:00 +0000
DS Smith reports good trading Recycled packaging firm DS Smith (LON:SMDS) said today that trading since the end of April has been good with a strong combination from its acquisition of Otor.

Like-for-like volumes in corrugated packing are up three per cent and in line with group targets, which the firm said reflected its resilient fast-moving consumer goods customer base. At the same time, the group continues to make progress on margins.

Like-for-like revenue growth across all the group’s packaging businesses was increased 13 per cent, reflecting the recovery of substantial cost increases as well as underlying volume growth. The firm said it was focused on completing the process of recovering these cost increases by seeking to differentiate itself through high standards of service, quality and innovation.

Smith also reported that conversion of profit into operating cash flow has been robust due to a continued focus on working capital, which has fallen in absolute terms (year-on-year) despite both the acquisition of Otor and increased raw material prices.

Trading during the business benefited from the inclusion of Otor (now DS Smith Packaging France), which performed well both in terms of revenue growth and delivery of previously-announced, and ongoing, cost savings of €13 million. The firm also continued to make good progress with procurement and UK efficiency savings. Combined these programmes are on track to deliver £6 million in total cost savings in 2011.

Smith said it remains confident in the trading outlook for the year.

Shares in the firm were trading for 199.5 pence each at lunchtime today, some 1.3 per cent  on their opening price.

Tue, 06 Sep 2011 12:57:00 +0100
DS Smith to buy French packaging business Otor from Carlyle Group for €247m DS Smith (LON:SMDA) has reached a binding agreement to acquire French corrugated packaging company, The Otor Group, for €247m (£206m) from private equity group Carlyle. The company believes that the acquisition satisfies a number of its key strategic objectives, to develop a strong continental European corrugated packaging business in theFast Moving Consumer Goods’ (FMCG) sector, and to significantly strengthen the company’s French presence.

The Otor Group consists of Otor SA (NYSE-PARIS:OTO) and the holdings company Otor Finance which owns 94.75% of Otor SA.

“[The acquisition] makes us one of the leading players in corrugated packaging in France with 80 percent of Otor's sales derived from cyclically less sensitive FMCG customers”,  DS Smith chief executive Miles Roberts commented.

Under the terms of the deal, DS Smith intends to acquire control of more than 95% of Otor’s share capital from entities controlled by Carlyle, from Credit Lyonnais (LCL) and from the chairman of Otor SA, Rob Jan Renders. Once the company has a 95% stake it can squeeze out the remaining shareholders with a mandatory offer, in accordance with the French stock exchange regulations.

DS Smith will pay a total of €247 million in cash, and assume Otor’s existing debt, as such the offer is equivalent to an all cash offer of €8.97 per Otor SA share.

The FTSE250 constituent sees a number of key benefits from the acquisition including: A broader customer base and greater exposure to the large and resilient FMCG segment; A stronger position as a major European corrugated packaging company; A better product and market mix; Estimated total cost synergies of around €9.3million; And  margin and earnings enhancement for the overall DS Smith Group.

Furthermore the company highlighted that the return on the investment in Otor, will be above DS Smith's weighted average cost of capital, in the first full financial year of ownership.

The massive US private equity group Carlyle has more than 900 corporate and real estate investments in its global portfolio, with 67 active funds in involved in buyout, credit alternatives, growth capital and real estate investing. Since its inception in 1987, the firm has invested US$60.6bn in 969 transactions, and it currently has more than US$90.5bn under management.

Wed, 07 Jul 2010 11:11:00 +0100
Asian Plantations acquires 5,850 hectare palm oil plantation for £12.4 million Asian Plantations Limited (AIM: PALM), which recently listed in London after successfully raising approximately £5.26 million, said it had entered into an agreement to acquire a 5,850 acre palm oil plantation in Sarawak, Malaysia for a total consideration of £12.4 million.

Asian Plantation is paying approximately £2,116 per hectare, and will fund the transaction through a new £10 million debt facility provided by a local bank in Malaysia, with the remaining funds drawn from its existing cash resources.  Asian Plantation is paying £2.6 million now, with a further £1.3 million due before 30 December 2009 and the balance paid before 31 January 2009.

The 5,850 plantation consists of around 1,000 hectares of planted land with palm tree approximately three years old. It is Asian Plantations intention to plant the remaining acreage over the next 12 months, subject to “the availability of sufficient working capital”.

For the year ended 31 December 2008, the plantation generated negligible revenues and had gross assets of £8.92 million.

The plantation is located only five kilometres from Asian Plantations existing acreage.

The palm oil plantation developer said the acquisition offered a number of strategic benefits to the company, including increased scale, a strong platform for future growth and immediate revenue generation.

"We are excited to have secured this new parcel of land, which has tremendous operational synergies with our existing estate operations and which are located in close proximity to one another,” Graeme Brown, Joint CEO, commented. “Through our long standing local relationships and on-the-ground presence, we were able to secure the parcel in a negotiated, non-competitive situation, which demonstrates our ability to source acquisition opportunities for the Company, as well as securing attractive local currency bank financing, which we believe creates long term shareholder value."

Asian Plantation listed on AIM with 4,795 hectares of land zoned for palm oil plantation in Sarawak, Malaysia, and stated that it would use the proceeds to complete planting and development .

Tue, 15 Dec 2009 15:24:00 +0000
DS Smith Jumps 8% Ahead of AGM, Q1 Statement Projects Substantial Cost Savings DS Smith Group Plc (LSE:SMDS) released their Q1 interim statement ahead of today’s AGM. In the statement, DS Smith reported better-than-expected overall performance, highlighting projected cost savings of £26m by the current financial year end.

The headline cost savings represent the progress made on Smith’s ‘Group's Action Programme’, where a sustained reduction in working capital is contributing to lower debt levels and reduced financing costs.

Shares in the FTSE 250 listed, international packaging and office products wholesaler, have responded strongly following the statement, jumping 8% this morning.

The packaging business continues to face reduced activity levels, with statistics showing a reduction of 11% industry-wide European demand for corrugated packaging in the first half of2009. However Smith’s identified marked differences between market sectors within their overall operations. In their ‘UK Paper and Corrugated Packaging’ segment, demand for DS Smith’s new lightweight Corrugated Case Material (CCM) is strong, whereas ‘Continental European Corrugated Packaging’ segments have a greater exposure to the industrial market and it’s seen a substantial fall in volumes.

In their other primary operation, the demand in DS Smith’s wholesale office products across Europe is down by up to 20% depending on the country and product sector. Despite this relative group performance is more positive. With Q1 sales at ‘Spicers’ demonstrating good performance compared to the market. Profits in UK operations remain low, although the ‘Group's Action Programme’ has strengthened both its market position and cost base. Reduced gross margins in the wholesale division reflect a changed sales mix and pricing pressures.

Across DS Smith’s primary operations the outlook is mixed for the remainder of the year, there is concern surrounding the level of demand for the major market sectors, however the implementation the ‘Action Programme’ and the strong balance sheet, underpin the management's confidence in achieving its expectations for 2009/10.

Tue, 08 Sep 2009 10:39:00 +0100
James Cropper soars on news of forecast-busting profits for the full year
In a pre-close trading update for the year to March 28 2009, it said that in the second half, Technical Fibre Products Ltd traded strongly and that the Speciality Papers made significant progress in reducing its first half losses.

The stock soared after the news broke, and was trading up 11.5 percent at midday.

Fri, 24 Apr 2009 12:14:00 +0100
Cambium buys further land in Brazil for eucalyptus plantation Jersey-based Cambium Global Timberland Ltd said it has acquired approximately 7,837 acres of bare land timber property to establish a eucalyptus plantation for conversion to charcoal for use by the pig iron industry in Brazil.

It paid £3.25 million and will require an additional £3.5 million to bring the investments into production.

The acquisition completes the Brazilian charcoal strategy that it announced in July 2008. Currently the company has purchased properties for the strategy totaling approximately £8.5 million in land purchases and an equivalent amount estimated for plantation development.

Eucalyptus is the wood of choice for timber substitution and the charcoal industry in Brazil and the oil of the trees contain makes the wood highly flammable.

Thu, 15 Jan 2009 10:48:00 +0000
Cautious update from DS Smith pushes shares lower DS Smith, the FTSE 250 constituent and international packaging supplier and office products wholesaler slipped 4.6% today after releasing its interim management statement.

In the statement, the company confirmed that the first quarter of its 2008/09 financial year had been in line with management expectations overall, but that its operating performance had been hit by slowing demand and higher costs, especially at its UK operations.  

Overall, the weaker performance in the UK had been offset by solid results from its European businesses.   There were signs of weakness in some parts of the group’s European business however, with demand for corrugated boxes slowing, and a “significant” fall in prices across continental Europe.  On the flip side, the group saw good growth at its Polish business, strong sales in Italy and operational improvements at its French business.

Meanwhile, in Plastic Packaging, recent increases in the cost of polymer costs is being pushed through to customers; ands performance in the division was described as “encouraging”.  

Finally, in Office Products Wholesaling, electronic office supplies sales have are growing strongly, but the company witnessed a drop off in volumes of more ‘traditional’ office supplies.

“It is still early in the Group's financial year.  Despite the tough trading environment, the Group's good market positions, continued tight operational discipline and strong balance sheet underpin the Board's confidence in achieving a robust performance in 2008/09”, the company stated.

DS Smith also confirmed that it had renewed and increased its revolving credit facility to £287.5 million over five years.

Wed, 03 Sep 2008 12:13:00 +0100