DS Smith profits jump

24th Jun 2010 08:11

Packaging and office products firm DS Smith narrowed losses last year and said the current year has started in line with expectations.Pre-tax profit surged 227% to £55m but that was due to the £55.7m exceptional charge last year. This year writedowns were only £13.3m. Despite an increase in sales volumes, revenue was down 2.2% to £355.4m due to lower selling prices.The group said all its business segments felt the impact of lower demand for their products and services as a result of the general contraction in economic activity but all were able to mitigate this by improving efficiency"Trading in the current financial year has started well and is in line with our expectations. We are experiencing increasing sales volumes due to the continuing recovery in market conditions. We are also benefiting from the success of our service and product offering," said the group.Looking ahead, the group said it is undertaking a review of its business portfolio to identify how long-term value can best be delivered to shareholdersFull year dividend increased by 4.5% to 4.6p per share