Picky shoppers help our packaging giant rise 6pc
SHOPPERS buying on a whim when they get to big stores have given a boost to packaging firm DS Smith.
The manufacturer, which supplies giants such as Procter & Gamble, which is behind household brands including Oral-B and Fairy, and Cadburys-owner Mondelez, saw revenues lifted because stores were having to put more thought into how their products are presented on supermarket shelves.
This is because more consumers are making on-the-spot decisions about what to buy, rather than planning ahead.
DS Smith said retailers are now investing in packaging and presentation to shift stock and moving away from traditional television advertising.
But the business said it was also a beneficiary of the rise in internet shopping, which increased demand for postal packages that make sure products reach customers in good condition.
The firm said sales in the first half were up 21pc on last year at £2.36bn, while pre-tax profit climbed 60pc to £146m.
Shareholders are set for a payout of 4.6p a share, an increase of 15pc from last year’s interim dividend. Shares soared 5.8pc, or 23.1p, to 419.1p. A stockbroker upgrade gave
Berendsen a lift. HSBC said management at the industrial laundry service provider was capable of addressing the issues at the company, which earlier this year issued a profit warning.
Analysts upped the stock to a buy and said that there were already signs of improvement across the group, which offers linen and workwear cleaning, and it has enough cash to make further acquisitions. HSBC said that the third of operating profits that come from the UK could be at risk from slower economic growth, but international earnings should help offset that. It has a target price of 1070p on the stock. The vote of confidence was enough to send shares up 6.9pc, or 54p, to 840p. Specialist insurance firm Novae
Group plunged as it revealed it had been dogged by large individual and catastrophe losses in the second half of year.
The company specialises in reinsurance for the property, marine and aviation sectors.
It said it now expects its full-year combined ratio to be 98-100pc – a ratio below 100pc means an insurer earns more in premiums than it pays out in claims, so the lower the ratio the more profitable the business.
Canaccord Genuity cut the stock from a ‘buy’ to a ‘hold’ after it announced its preliminary results for the year, while RBC shaved 25p off its target price to 900p. Shares plunged 24.4pc, or 204p, to 631p.
The FTSE 100 finished in positive territory, up 0.4pc, or 29.3 points to 6931.55. Communications firm
WPP was the highest riser of the day after stock broker Jefferies slapped a ‘buy’ rating on the stock. Shares climbed 1.7pc, or 29p, to 1723p.
At the other end of the market was Capita, which slumped as it cut its profit forecast for the second time in just three months. Shares plunged 14pc, or 78.7p, to 485.3p.
While the financial trading firms had tried to regain some of their losses, they were back down again yesterday as worries about the future of the sector persevered.
CMC Markets lost 9.6pc, or 11.2p, to, 105.3p and IG Group dropped a further 1.3pc, or 6.3p, to 478.8p.
Car finance lender S&U revved up as it reported customer numbers had climbed 34pc. The lender said customer applications for car finance were at near record levels, with 42,000 live customers.
S&U said monthly collections were at record levels at more than £8m a month, though its impairment ratio had risen to 18.5pc from 17.7pc in the summer. The business is also set to pilot a home bridging loan service to help broaden its revenue stream. Shares advanced 5.6pc, or 119p, to 2128p.