In a trading update, DS Smith, parent group of wholesaler Spicers, has said that a drop in profits of the UK Spicers business has been more than offset by its European operations.

Operating profit for the year for the European business was up to $12.8 million from £12.6 million, with strong contributions from the newly acquired Timmermans business and Spicers operations in Italy and Spain.

However, regarding the UK business, DS Smith noted 'a significant drop in profits' for the year and that the business had been 'significantly affected throughout the year by competitive pressure', though it was cautiously optimistic about the 3-year turnaround plan that it is implementing.