(Alliance News) - De La Rue PLC on Wednesday said its annual outlook is expected to be in line with expectations, despite declined revenue in its Identity Solutions arm.
The Basingstoke, England-headquartered polymer and security printed products manufacturer said pretax profit in the six months to September 25 multiplied to GBP10.9 million from GBP2.5 million a year ago.
De La Rue recorded revenue of GBP179.2 million, down 1.9% from GB182.6 million in the period. The company said this was due to the discontinuance of the UK Passport contract in its Identity Solutions division. The division's adjusted revenue fell to GBP2.1 million from GBP17.4 million.
De La Rue noted that the loss in revenue was still largely offset by growth in its Authentication and Currency businesses.
The company declared no dividend. "We continue to aim for the group to be generating positive cash flow capable of supporting sustainable cash dividends to shareholders by the end of the turnaround plan in full-year 2022/23," De La Rue stated.
The company also mentioned headwinds in commodity and energy costs as well as supply chain issues.
Nevertheless, it stated trading to this date has been positive and that its outlook continues to be in line with expectations.
"Our first half results have shown substantial improvement in the group's financial and operational performance," Chief Executive Clive Vacher said.
He added: "Based on group trading for full year 2021/22 to date continuing to be positive, the outlook for revenue, adjusted operating profit and net debt for the full year remain in line with the board's expectations."
Shares were down 2.1% at 157.10 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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De La Rue (DLAR)