The Smith(DS) Board considers the dividend to be a very important component of shareholder returns. In December 2020 they announced an interim dividend of 4.0 pence per share. Their policy is that dividends will be progressive and that, in the medium term, dividend cover should be on average of 2 to 2.5 times (relative to adjusted earnings per share), through the cycle. Accordingly, they are announcing a final dividend for this year of 8.1 pence, taking the total dividend for the year to 12.1 pence (2019/20: nil), in line with their policy.
Other financial highlights include:
Accelerating corrugated box volume growth
FY +3.5%, H2 +8.2%
Further market share gains with FMCG customers in Europe and US
Trading continues to build positively
Profit adversely impacted by Covid-19, particularly in Q1
Positive profit momentum: H2 adjusted operating profit £272m vs. H1 £230m
Good progress with initial price recovery of input cost increases
Strong recovery from US business - adjusted operating profit up 70%
Excellent cashflow generation
FCF +37% driving net debt reduction to £1,795m 2.2x net debt/EBITDA (31 October 2020 2.4x)
Statutory profit before tax for year £231m (-38%)
