Spicers and JD Achieve Tunaround

DS Smith Plc, the parent of Spicers and John Dickinson, has announced its preliminary results for the year ended 30 April 2003. Profit before tax was up 27% to £79.7 million and earnings per share were up 29% at 18 pence.

The office products business saw a significant turnaround in operating profit. Group chairman Antony Hichens said that 2002/2003 was a challenging year in which demand weakened in most of the group's markets. However the group met its key objectives of maintaining progress in packaging and rebuilding profitability in office products.

Looking at the office products businesses, the group says "the decisive actions taken by the management teams towards the end of 2001/2002 in both wholesaling and manufacturing resulted in a turnaround in profits despite the very poor demand for office products across Europe." Total office products sales were down 2%, but operating profit was up from £8.1 million in 2001/2002 to £20.2 million.

The group says Spicers met its targets for rebuilding profitability. Operating profit before exceptional items and amortisation of intangibles increased from £9.7 million to £16.2 million. While sales were down in the UK and Ireland, the group says in the UK high service levels were achieved and margins improved through reduced operating costs and margin management.

John Dickinson also saw a turnaround in profit, from a loss before exceptional items of £1.6 million to a profit of £4 million.