Results round-up

FTSE 250 packaging company DS Smith reported a 31% rise in full-year pre-tax profit on Thursday as it announced the acquisition of an 80% stake in US packaging and paper producer Interstate Resources from Merpas Co for $920m.

In the 12 months to the end of April, pre-tax profit jumped to £264m, on revenue of £4.8bn, up 18% on the previous year, or 6% at constant currency. The company attributed revenue growth to the contribution from organic growth and from acquired businesses.

DS Smith declared a final dividend of 10.6p per share, taking the total dividend for the year to 15.2p, up 19% on the year before.

Chief executive Miles Roberts said: "We are delighted to report another year of good growth for DS Smith, delivered through a combination of acquisitions and organic development. We have expanded our customer offering during the year both geographically and through our continuous focus on innovative solutions for our customers and delivered against all our medium-term financial targets.

"This progress has continued into the new financial year. Full recovery of the recent paper price rises is progressing well and as expected."

DS Smith also said it was buying 80% of Interstate in a deal that will see it take on around $226m of the business's debt, with an option to buy the remaining 20% of the company over five years. It intends to part fund the acquisition through a placing to raise £285m.

Roberts said: "We have seen significant customer pull for our innovative packaging solutions in the US and are excited by the opportunity to grow and support our customers' needs over this large and growing market. It is a further important step in our strategy, further building a higher quality, higher margin group with more growth potential. We very much look forward to working with all the employees, customers and suppliers of Interstate Resources."

AIM-listed hybrid estate agent Purplebricks said on Thursday that its full-year losses more than halved as revenue surged and the company lifted its UK revenue expectations for the current year.

In the year to the end of April, operating losses fell to £6m from £11.9m in 2016 as revenue jumped to £46.7m from £18.6m. In the UK, revenue was up 132% to £43.2m and the number of local property experts rose 118% to 448.

The UK business reported its first full year operating profit and adjusted earnings before interest, taxes, depreciation and amortisation of £1.7m, versus a loss of £9.7m a year ago. Purplebricks sold and completed on over £5.8bn of UK property and its online market share increased to 72% from 62%, with a sale agreed every nine minutes.

Chief executive Michael Bruce said: "This has been a very successful year in the early development of the Purplebricks model and brand. We have materially grown our national footprint and have built a growing brand awareness and reputation for delivering customers a more convenient, transparent and cost effective service.

"In tandem with our growth we have invested in the business and strengthened the management team. This has allowed us to significantly grow our number of positive reviews on the independent review site Trustpilot (currently with over 20,000). We have retained our rating of excellent. Purplebricks is now in a strong position to become the no.1 estate agent in the UK for both listings and sales. "

As far as the outlook is concerned, the company said it is stepping up its recruitment of local property experts to meet demand and increasing its UK marketing spend in the second half by around £3.5m year-on-year, so UK revenue expectations for the current year are lifted by approximately £80m, up significantly from the £43m reported for FY17.

For Australia, expectations for revenue of £12m remained unchanged following good progress to date.