2001 Preliminary Stmnt Pt 2

De La Rue PLC
23 May 2001




PART 2


1     SEGMENTAL ANALYSIS       2001   2001   2001      2000      2000      2000
                           Turnover Profit    Net  Turnover    Profit       Net
                                    Before Assets              Before    assets
                                       tax                        tax
                                                  (restated)(restated)(restated)
      Class of business          £m     £m     £m        £m      £m         £m
      Continuing
      operations
      Cash Systems            239.0   15.8   56.0     257.3     4.4        47.3
         Reorganisation                  -                    (19.2)
                              239.0   15.8   56.0     257.3   (14.8)       47.3
      Acquisitions             23.4    1.0      -         -         -         -
         Reorganisations              (0.8)                          -
                               23.4    0.2      -         -         -         -
                              262.4   16.0   56.0     257.3   (14.8)       47.3
      Security Paper and      212.8   50.4  108.5     214.0    45.7        96.3
      Print
         Reorganisation                  -                     (4.4)
                              212.8   50.4  108.5     214.0    41.3        96.3
      Global Services          55.3   (0.8)  14.3      50.5     5.1         7.0
      Arbitration costs                  -                     (2.0)
      Less inter-segment       (5.7)                   (2.9)
      sales
                              524.8   65.6  178.8     518.9    29.6       150.6
      Discontinued
      operations
      Cash Systems                -      -      -      13.5         -      (2.6)
      Card activities             -      -      -      84.7     5.1        (7.0)
                                  -      -      -      98.2     5.1        (9.6)
                              524.8   65.6  178.8     617.1    34.7       141.0
      Associated companies             4.8   43.3              14.7        61.0
      (analysed below)                                                     
      Non-operating items             (3.0)                    57.0
      (note 2)
      Net Interest                     3.2                          -
      including associates

      Profit before                   70.6                    106.4
      taxation
      Unallocated                           (44.6)                        (41.0)
      liabilities
      Capital employed                      177.5                         161.0
      Net funds                              36.1                           2.1
      Net assets                            213.6                         163.1

      Geographical area by
      operation
      United Kingdom and      335.2   44.2   91.8     357.9    16.5       59.5
      Ireland
      Rest of Europe          162.5   19.4   44.3     214.8    13.3       37.6
      The Americas            101.8    0.3   19.9     116.9     1.1       19.5
      Rest of world            49.8    1.7   22.8      59.5     3.8       24.4
      Less inter-area        (124.5)                 (132.0)
      sales
                              524.8   65.6  178.8     617.1    34.7      141.0

The profit before tax in 2001 is shown after reorganisation costs of £0.8m
(2000 : £25.6m) comprising UK and Ireland £Nil (2000 : £15.7m), Rest of Europe
£0.8m (2000 : £8.3m), Americas £Nil (2000 : £1.5m), Rest of World £Nil (2000 :
£0.1m).

Geographical area by
destination
United Kingdom and Ireland     66.0                    85.8
Rest of Europe                170.0                   213.7
The Americas                  135.2                   163.2
Rest of world                 153.6                   154.4
                              524.8                   617.1
      
Associated companies are analysed as
follows
Security Paper and print              (2.2) 14.9                3.9       19.1
UK lottery                             7.0  28.4               10.8       41.9
                                       4.8  43.3               14.7       61.0
      
Geographical area by
operation
United Kingdom and Ireland             7.0  28.4               10.8       42.0
Rest of Europe                        (2.7) 14.7                3.9       18.1
The Americas                             -     -                  -        0.6
Rest of world                          0.5   0.2                  -        0.3
                                       4.8  43.3               14.7       61.0

The Group's cash and borrowings are managed centrally and therefore interest
is not attributable to individual classes of business or geographical
segments.

Unallocated net liabilities, which consist of assets and liabilities relating
to non-divisional operations, are controlled centrally and cannot be allocated
meaningfully to individual classes of business or geographical segments.

2     NON-OPERATING ITEMS                                        2001      2000
                                                                   £m        £m

      Loss on the disposal of continuing operations             (3.0)         -
      Profit on the disposal of discontinued operations             -      56.1
      Profit on sale of investments                                 -       2.0
      Scheme of arrangement costs                                   -      (1.1)
                                                                (3.0)      57.0

The loss on disposal of continuing operations of £3.0m arose on disposal of the
assets of Cash Systems' South Africa business for net proceeds of £0.6m.  The
loss was after charging £3.8m of goodwill to the profit and loss account.  This
was written off directly to reserves when the business was originally acquired.

The profit on disposal of discontinued operations of £56.1m in 2000 arose from
the following:

the disposal of the Card activities business which generated a profit of £ 57.4m
after writing off goodwill of £71.9m previously eliminated against reserves; 

the disposal of plan object, which designed and manufactured bank
branch furniture, generating a loss of £1.3m.

The profit on the sale of investments in 2000 of £2.0m comprised:

a profit of £1.1m on the sale of preference shares in Cromptons, a tea bag
paper manufacturing company; a profit of £0.9m on the sale of shares in
Ingenico, terminals manufacturer.

The costs of the scheme of arrangement in 2000 were primarily advisor's fees.

3     TAXATION                                                   2001      2000
                                                                   £m        £m

      Tax on profit on ordinary activities
      United Kingdom
      Corporation tax at 30% (2000 30%)                          29.0      10.4
      Double taxation relief                                     (7.3)     (2.0)
      ACT write back                                             (6.4)     (2.7)
                                                                 15.3       5.7
      Overseas
      Taxation payable                                            3.3       5.7
      Deferred taxation                                          (1.3)      0.9
                                                                  2.0       6.6

      Total UK and Overseas                                      17.3      12.3
      Adjustment in respect of prior years                       (4.0)     (0.4)
      Tax on share of profits of associated companies             4.7       5.2
                                                                 18.0      17.1
      Exceptional items                                         (13.4)      0.6
      Total taxation charge                                       4.6      17.7

A Group tax provision of £3.2m was released against the tax on share of
profits of associated companies, reducing the tax charge from £7.9m to £4.7m
to offset amounts paid by an associate in respect of a tax dispute.

The exceptional tax credit of £13.4m, comprises £0.9m relating to Camelot
win-bid costs, (bringing the total tax on share of profits of associated
companies to £7.0m) and £12.5m reflecting the write back of provisions
following settlement of various tax disputes.  The other exceptional items did
not have a material impact on the tax charge for the year.

The taxation charge on exceptional items in 2000 was £0.6m comprising tax
credits relating to reorganisation costs of £2.1m and a charge of £2.7m
relating to the profit on the Card activities disposal (the prior year
comparatives have been restated to reflect these items).

PRINCIPAL EXCHANGE RATES

                       2001            2001             2000               2000
                    Average        Year end          Average           Year end
US dollar              1.48            1.42             1.61               1.60
Euro                   1.64            1.61             1.57               1.67
Swiss Franc            2.52            2.45             2.51               2.65


4     EARNINGS PER SHARE                                  2001            2000
      Basic                                              34.6p           39.9p
      Fully diluted                                      34.1p           39.6p

Earnings per share are based on the profit for the year attributable to
ordinary shareholders of £65.8m (2000 £87.7m) as shown in the Group profit and
loss account.  The weighted average number of ordinary shares used in the
calculations is 190,152,358 (2000 220,023,945) for basic earnings per share
and 193,177,069 (2000 221,762,065) for diluted earnings per share after
adjusting for dilutive share options.

      Reconciliation of earnings per share                Pence per   Pence per
                                                              share       share

      As calculated under FRS14                                34.6        39.9
      Loss on the disposal of continuing operations             1.6           -
      Profit on the disposal of discontinued operations           -       (24.3)
      Profit on sale of investments                            (0.1)       (0.9)
      Loss/(profit) on the disposal of fixed assets and         0.1        (0.1)
      assets held for resale
      Scheme of arrangement costs                                 -         0.5
      Amortisation of goodwill                                  1.1         0.7

      Headline earnings per share as defined by the            37.3        15.8
      IIMR
      Reorganisation and arbitration costs                      0.4        10.7
      Share of associated company's exceptional items           1.3           -
      Exceptional release of tax provision                     (6.6)          -

      Headline earnings per share before items shown           32.4        26.5
      above

The Institute of Investment Management and Research (IIMR) has published
Statement of Investment Practice No. 1 entitled 'The Definition of Headline
Earnings'.  The headline earnings per share shown above have been calculated
according to the definition set out in the IIMR's statement.  The reconciling
items between earnings per share as calculated according to FRS 14 and as
calculated according to the definition of the IIMR's headline earnings include
the underlying tax effects.  The directors are of the opinion that the
publication of the IIMR's headline earnings figure is useful to readers of
interim statements and annual accounts.

5     NOTES TO GROUP CASH FLOW STATEMENT                            2001   2000

a     Reconciliation of operating profit to net cash inflow from
      operating activities
      Operating profit                                              65.6   34.7
      Depreciation and amortisation                                 24.3   25.0
      (Increase)/decrease in stocks                                 (2.4)   7.9
      (Increase)/decrease in debtors                                (4.9)  13.8
      Decrease in creditors                                         (7.4) (11.3)
      Decrease in reorganisation provisions                         (7.6)  (1.9)
      Other items                                                    1.0   (0.2)
      Net cash inflow from operating activities                     68.6   68.0

b     Returns on investments and servicing of finance
      Interest received                                              3.0    4.0
      Interest paid                                                 (4.2)  (7.5)
      Interest element of finance lease payments                    (0.1)  (0.2)
      Dividends paid to minority shareholders                       (0.3)  (1.3)
      Net cash outflow from returns on investments and servicing    (1.6)  (5.0)
      of finance

c     Capital expenditure and financial investment
      Purchase of tangible fixed assets                            (27.9) (25.3)
      Purchase of intangible fixed assets                           (0.3)  (2.9)
      Sale of tangible fixed assets                                  1.8    3.2
      Purchase of investments                                       (0.9)  (1.4)
      Sale of investments                                            6.5   10.6
      Purchase of own shares                                           -   (6.2)
      Net cash outflow for capital expenditure and financial       (20.8) (22.0)
      investments

d     Acquisitions and disposals
      Purchase of subsidiary undertakings                           (4.8)     -
      Net cash acquired with subsidiary undertakings                 0.4      -
      Sale of subsidiary undertakings                                0.2  183.9
      Net overdrafts sold with subsidiary undertakings                 -    0.8
      Sale of assets held for disposal                                 -    1.2
      Net cash (outflow)/inflow from acquisitions and disposals     (4.2) 185.9

e     Management of liquid resources
      Net increase in short term deposits                            0.3  (55.6)

f     Financing
      Debt due within one year:
           Decrease in short term borrowings                           -   (0.2)
           Loans raised                                              3.6      -
           Loans repaid                                            (20.5) (47.5)
      Debts due beyond one year:
           Loans raised                                              1.5   53.1
           Loans repaid                                            (18.3) (60.7)
      Capital element of finance lease rental repayments            (0.5)  (1.6)
      Scheme of arrangement                                            - (103.3)
      Preference shares repaid                                         -   (0.5)
      Scheme of arrangement costs                                      -   (1.1)
      Share capital issued                                           2.8    0.4
      Net cash outflow from financing                              (31.4)(161.4)

NOTES

6  The consolidated accounts have been prepared as at 31 March 2001.  The
   comparatives for the 2000 financial year are for the year ended 1 April
   2000, being the nearest Saturday to 31 March 2000.

7  Following approval of a Scheme of Arrangement, the Company acquired the
   previous parent of the Group on 1 February 2000.  The acquisition was
   accounted for as a merger, the true and fair override being applied such
   that the fair value acquisition accounting requirements of the Companies Act
   1985 were not adopted as, in the opinion of the directors, this would not
   have given a true and fair view as the Scheme of Arrangement, in substance,
   represented a change in identity of holding company rather than an
   acquisition of a business.  Share capital and reserves comparatives in the
   consolidated balance sheet were restated to reflect the nominal value of
   shares in issue of the Company immediately prior to the reorganisation.
   Differences between this amount and the previously reported capital and
   reserves, represent the merger difference, and are reflected in other
   reserves.

8  The 1999/2000 comparatives have been restated to reflect the reporting of
   Global Services as a separate division with effect from 2 April 2000.

9  The Institute of Investment Management and Research (IIMR) has published
   Statement of Investment Practice No 1 entitled 'The Definition of Headline
   Earnings'.  The headline earnings per ordinary share shown in this
   preliminary statement have been calculated according to the definition set
   out in the IIMR's statement.  Also shown are the reconciling items between
   earnings per share as calculated according to FRS14 and as calculated
   according to the definition of the IIMR's headline earnings.

10 The financial information set out above (Group profit and loss account,
   Group balance sheet, Group cash flow statement, Group statement of total
   recognised gains and losses and notes thereto) and extracts from the
   financial review (set out in the following pages), do not constitute
   statutory accounts within the meaning of Section 240 of the Companies Act
   1985.

   Statutory accounts for the year ended 31 March 2001 will be posted to
   shareholders on 14 June 2001 for subsequent approval at the annual general
   meeting and copies will be available from the Company Secretary at De La Rue
   plc, De La Rue House, Jays Close, Viables, Hampshire RG22 4BS.  The report
   of the auditors on these accounts is unqualified and does not contain a
   statement under either section 237(2) or 237(3) of the Companies Act 1985.
   Statutory accounts for the year ended 1 April 2000 have been delivered to
   the Registrar of Companies.