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Smurfit Kappa delivers the goods ahead of premium London listing

The packaging products manufacturer cheered markets with news of a premium UK listing and strong operating performance in tough markets
February 10, 2016

A reassuring outlook and announcement that Smurfit Kappa (SKG) intends to move its primary listing to the London Stock Exchange sent shares in the packaging products manufacturer soaring 13 per cent. Judging from the successes of fellow Irish companies DCC (DCC) and CRH (CRH) when moving to the UK, switching the group's core listing to a nation with a wider pool of potential investors could have huge benefits.

IC TIP: Buy at 2106€

That encouraging news was enhanced by a positive period of trading. Against a backdrop of global economic uncertainty, adjusted cash profits grew 11 per cent to a record €326m (£252m) in the fourth quarter of 2015. A strong contribution from seven businesses acquired for over €380m, decent return on capital investments, cost-cutting and robust demand for packaging helped deliver this success.

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