Last checked at 16 Sep 2009 07:00
De La Rue Pre-Close Statement for Six Months to 26 September 2009
16 September 2009
Prior to entering its close period for the six months to 26 September 2009, the Board of De La Rue issues the following trading update. The Company's interim results are due to be announced on 24 November 2009.
The Group's overall operating performance remains in line with the Board's expectations, underpinned by a good performance from Currency.
As stated in July, first half banknote volumes are expected to be consistent with the corresponding period last year with revenues aided by favourable exchange and now also an improved mix. The good order book coverage in Currency provides good visibility for the 2009/10 full year and supports an increase in year-on-year banknote volumes and revenues.
Cash Processing Solutions continues to experience difficult trading. As part of its retention from Cash Systems, management has completed plans necessary to focus the business more effectively on its Central Bank customers and to rationalise the product and manufacturing base. These actions will result in exceptional costs of up to £5m this year which we expect to pay back within 2 years. A further exceptional charge of £2.5m will be taken at the half year in relation to resolution of a legacy overseas tax issue.
Security Products continues to trade in line with expectations. The business maintains its focus on productivity improvements and cost control as well as benefiting from further growth in component sales from Holographics.
As already announced, Identity Systems is trading at lower comparable first half volumes, reflecting deliveries strongly weighted towards the second half of the year. It has good order book visibility for the full year and is on schedule to commence the sale of UK Passports in the second half of 2010/11.
The Group continues to operate with modest net debt, supported by improved levels of advance payments at the half year. As a result of the UK Passport contract, extra capital investment of £18m is scheduled during 2009/10.
Overall, excluding exceptional items, the Board's expectations for the results for the full year 2009/2010 remain unchanged, underpinned by the continued good order book coverage in Currency.
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For further information, please contact:
James Hussey Chief Executive +44(0)1256 605222
Simon Webb Finance Director +44(0)1256 605222
Clare Lloyd Williams Group Communications +44(0)1256 605222
Andrew Lorenz Financial Dynamics +44(0)207 269 7291
Notes to Editors
| De La Rue is the world's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as passports, authentication labels and fiscal stamps. The company is a leading provider of cash sorting equipment and software solutions to Central Banks, helping them to reduce the cost of handling cash. De La Rue also pioneers new technologies in government identity solutions for national identification, driver's licence and passport issuing schemes. De La Rue employs approximately 4,000 people worldwide and is a member of the FTSE 250. | |
| For further information visit De La Rue's website at www.delarue.com. | |