'Creditable' performance by packaging giant D S Smith

The international packaging and office products wholesaling group reported revenues of £1.1 billion for the six months to 31 October, up from £943 million for the same period last year. Pre-tax profit, however, fell to £44 million (£56m). The company said it had seen a progressive slow-down in demand across its markets and “firm action” was being taken to realign its cost base. Chairman, Peter Johnson said: "In a deteriorating trading environment the group produced a creditable result.” The performance in the packaging operation was assisted by the company’s recycling business and its continued expansion in the more defensive fast-moving consumer goods sector. The Spicers subsidiary’s continental businesses performed relatively well. Group chief executive, Tony Thorne said he expected trading conditions to remain difficult as a result of lower demand across all markets. He added: “We are taking concerted action to support our strong market positions and underpin the Group's results. Cash generation will remain an area of key focus. We are confident that the actions we are taking will position the Group for a robust performance going forward."