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(Alliance News) - De La Rue PLC on Thursday reported positive trading in its current financial year, ending March 27, and has seen good progress on implementing its turnaround plan amid challenges caused by the pandemic.
The Basingstoke, England-headquartered polymer and security printed products manufacturer, as a result of this, expects financial 2021 adjusted operating profit in the range of GBP36 million to GBP37 million, compared with current market expectations of GBP34 million.
De La Rue said the improved expectations are largely driven by a strong performance by its Currency division, resulting in plans to spend GBP20 million on its polymer strategy, which is an increase on the GBP15 million previously indicated.
"I am pleased that we are able to report increased adjusted operating profit expectations for the year, due to positive trading. We remain focused on delivering shareholder value through the successful execution of our turnaround plan," said Chief Executive Clive Vacher.
"In addition, I am delighted to announce further investment in manufacturing and job creation in the north west of the UK, as we continue to increase our polymer market share globally. The Currency team has done a remarkable job in bringing De La Rue's Safeguard polymer substrate to a position of industry leadership," he added.
Additionally, De La Rue said it has decided on a UK location for the expansion of manufacturing capacity for its Safeguard polymer substrate. The additional production line will be located in a recently acquired building adjacent to its existing premises in Westhoughton, near Bolton. It will more than double current polymer production capacity and is expected to be fully operational before the end of 2021.
De La Rue plans to announce its full-year results on May 26.
Shares in De La Rue were up 5.2% at 161.00 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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