Smith (DS) (SMDS) Plc - Pre-close statement.

[idpickering]

Trading continues in line with expectations

· As expected, like for like corrugated box volume performance has improved quarter on quarter, albeit remaining below the prior year.

· Pricing has remained more resilient than expected, reflecting our strong customer relationships, ongoing innovation and high service levels. Reduced input costs and cost mitigation efforts have broadly offset the price declines.

· We continue to invest in our business, including the recently opened group-wide innovation hub, R8. This UK-based facility allows us, our customers, and partners to accelerate the research and development of new packaging solutions.

· Overall trading remains in line with expectations, with adjusted EBITA for the 6 months to 31 October 2023 expected to be approximately £360m.

Miles Roberts, Group Chief Executive, said:

"Overall, I am pleased with our robust performance during the first half. Despite an ongoing weak macro-economic environment, we expect volume performance to improve, with second half volume performance anticipated to be better than the first half. We continue to invest behind our customers, focusing on providing them with value added solutions and this, together with our strong operational performance, means we are positioned well for the remainder of FY24."

https://www.investegate.co.uk/announcem ... nt/7839903

Also posted on Company News here; viewtopic.php?p=623143#p623143

I hold these in my HYP and know others hereabouts do too, so this may be of interest here/

Ian.

[BullDog]

Thanks. Recently bought a few more at the year low. Remains deeply disappointing but a decent yield.

[idpickering]

Thanks. Recently bought a few more at the year low. Remains deeply disappointing but a decent yield.

You're welcome. I do intend adding to my SMDS holdings at some point. They currently make up 2.4% in capital value terms of my 28 share HYP.

Ian.

[kempiejon]

Thanks. Recently bought a few more at the year low. Remains deeply disappointing but a decent yield.

Like Ian I hold these, been in my portfolio for ages. Looking today, high yield, good cover, dividend of history rises, if we exclude the covid event, paying down debt. All good metrics yet the capital value has more or less stayed within £3 to £4 for 5 years and is not creating me much wealth. Good luck Bulldog if you have picked the bottom. Although the price has more than doubled in my holding period to me it seem that recently the dividend isn't pulling the value upwards, perhaps I'll have to wait a bit longer.

[BullDog]

Thanks. Recently bought a few more at the year low. Remains deeply disappointing but a decent yield.

Like Ian I hold these, been in my portfolio for ages. Looking today, high yield, good cover, dividend of history rises, if we exclude the covid event, paying down debt. All good metrics yet the capital value has more or less stayed within £3 to £4 for 5 years and is not creating me much wealth. Good luck Bulldog if you have picked the bottom. Although the price has more than doubled in my holding period to me it seem that recently the dividend isn't pulling the value upwards, perhaps I'll have to wait a bit longer.

I tend to take profits and then buy back on the dips as this share is a fairly reliable range bound yoyo. Meantime I harvest the dividends. Hoping for a bid here as this is a relatively small player and consolidation in the sector is already underway. Knowing my luck I'll sell to take profits and the day after a bid will emerge!

Moderator Message:
To help readers unfamiliar with the HYP set of strategies (as loosely defined in the guidelines) not to become confused, it is pointed out here that taking profits and then buying back on dips is not part of HYP (although for those that tinker occasionally this could conceivably occur, but very much as a side-effect). - Chris