2010 AGM Chairman's Statement

RNS Number : 7467P

De La Rue PLC

22 July 2010

 

De La Rue plc

2010 AGM Chairman's Statement and Interim Management Statement

At De La Rue plc's Annual General Meeting ("AGM") being held today, the Chairman, Nicholas Brookes, will make the following statement which comprises the Group's Interim Management Statement for the period from 28 March 2010, as required by the UK Listing Authority's Disclosure and Transparency Rules:

"As shareholders know the Group released a trading statement on Tuesday 20 July which was as follows:-

At the announcement of the Group's preliminary results in May, the Board expected Currency volumes for 2010/11 to be at similar levels to 2009/10 albeit with lower margins and with a greater than normal weighting towards the second half.

However, quality and production irregularities at one of the Group's paper production facilities have very recently been brought to the Board's attention.  It is apparent that some paper production has failed to meet certain quality specifications.  As a consequence the production and shipment of this specification paper has been suspended whilst the circumstances are fully investigated.  Subject to the outcome of that process and clarification of the company's contractual position it is now expected that paper production and sales in 2010/11 will be materially lower than originally planned.

The full impact on the current year financial results and on the Group's prospects has yet to be determined. A further announcement will be made as soon as the Board has been able to assess the financial and operational implications of these matters.

There is nothing further to add to this statement at this time.

First Quarter Trading

The Group's trading performance during the first quarter has been broadly in line with the Board's expectations.  As expected, Currency volumes have been lower than in the corresponding period last year.  Security Products has traded satisfactorily while Cash Processing Solutions continues to make good progress in its refocusing of the business.  Identity Systems remains on schedule with the implementation of the UK Passport contract."

Dividend 

Subject to shareholder approval at today's AGM, the previously announced final dividend for the year ended 27 March 2010 of 28.2p per ordinary share will be paid on 5 August 2010 to shareholders on the register at the close of business on 9 July 2010.   

-ends-

22 July 2010

For further information, please contact:

James Hussey	Chief Executive	[phone]
Colin Child	Group Finance Director	[phone]
Clare Lloyd Williams	Group Communications Manager	[phone]
Andrew Lorenz	Financial Dynamics	[phone]
Susanne Yule	Financial Dynamics	[phone]

 

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

 

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