Interim Results

De La Rue PLC
27 November 2001




                              INTERIM STATEMENT


                      Six months to 29 September 2001


                                  HIGHLIGHTS



- Operating profits* up 7% at £29.8m and profits before tax* up 13% at £35.6m.

- Cash Systems sales up 23%, operating profits up £10.2m to £14.0m, and margins
  average 9.5% for first half (excluding acquisitions).

- Currency results depressed in first half through expected wind down of India
  paper contract but good order book underpins second half results.

- Global Services incurs losses of £2.7m (2000/2001 : profit of £0.9m).

- Headline earnings per share up 7% at 13.4p on comparable period despite 1%
  increase in effective tax rate.

- Interim dividend increased by 5% to 4.2p (2000/2001 : 4.0p) per share.

- Despite £58m spent on acquisitions (including debt acquired) in the first
  half closing net debt at £30m represents gearing of just 11%.

- Favourable outlook for second half supported by strong order book in Cash
  Systems and Currency.

  * before exceptional items (including reorganisation costs) and goodwill
  amortisation charged to operating profits



Brandon Gough, Chairman of De La Rue plc, commented on the results:



'It is particularly pleasing that the first half has seen further progress and
continued strong financial performance for De La Rue against a background of
overall economic uncertainty.  Cash Systems is delivering as promised and is
on target to achieve an overall 10% margin for the year (excluding
acquisitions).  Both Cash Systems and Currency enjoy good order books which
helps underpin our confidence for the second half.  Global Services has had a
disappointing first half but we have taken action to restructure the division
into three market focussed businesses.



'The financial strength of the company, our leading market positions, strong
order books and calibre of our people allow us to be confident about the
outlook for the Group.'



For further information please contact:


Paul Hollingworth    Finance Director                 [phone]
Mark Fearon          Head of Corporate Affairs        [phone]
Stephen Breslin      Brunswick                        [phone]



Group Results



A strong trading performance from Cash Systems, where operating profits were
up £10.2m to £14.0m (on the back of a 23% rise in revenues -
pre-acquisitions), has more than offset a reduction in profits in other parts
of the Group resulting in overall operating profits being £2.0m or 7% ahead at
£29.8m.  Headline earnings per share increased by 7% to 13.4p in the first
half despite the effective tax rate increasing from 27% to 28%.



As expected, the absence of India banknote paper orders within our Currency
business has impacted first half profits in the Security Paper and Print
division.  The second half should be stronger given the good banknote order
book.  For the non-banknote security products business the move to a new
manufacturing facility for De La Rue Tapes caused some short term disruption,
which adversely impacted profits.  Global Services had a disappointing first
half and losses of £2.7m were incurred (2000/2001 : profit of £0.9m) as De La
Rue Holographics (DLRH) sales and margins came under pressure; and decreased
revenues in the Identity Systems (IDS) business caused by timing delays in a
number of installations were reported.  However, actions taken, as announced
in May 2001, should lead to a better performance in the second half with both
DLRH and IDS enjoying good order books.



Cash Systems has had an excellent first half as sales were up 23%
(pre-acquisitions) and margins improved from 3.2% to 9.5%.  We are on target
to reach a margin for the year of 10%.  The overall contribution from
acquisitions was small - £0.4m operating profit on sales of £20.9m but we do
expect the acquisitions to be earnings enhancing and make a meaningful
contribution for the full year.



Dividend



An increased interim dividend of 4.2p per share, up 5% on last years' interim
dividend will be paid on 8 April 2002 to shareholders on the register on 8
March 2002.



Acquisitions



During the first half Group expenditure on acquisitions was £57.6m (including
debt acquired).  This included several bolt-on acquisitions by Cash Systems
including ATS Money Systems Inc., a US based cash handling organisation for
the retail market; and Ascom's cash handling service businesses in Belgium and
Switzerland.  In May 2001, Cash Systems also acquired Currency Systems
International Inc. (CSI), the US based manufacturer of large sorting equipment
and software for US$55m.



Disposals



In October 2001, we announced the disposal of our Transactions Services (TS)
business to alphyra group plc for £6m; £3m of which was in alphyra group new
shares.  For the half year TS lost £1.2m (2000/2001 : loss of £0.7m) but the
sale resulted in an estimated exceptional pre tax gain of £3.0m.  As announced
in May 2001 we completed the CHF 50m (£20m) disposal of our 50% shareholding
in De La Rue Giori SA, the leading supplier of currency printing presses, to
Koenig & Bauer AG, the German manufacturer of printing presses.  In addition,
De La Rue also reached agreement with M. Roberto Giori, Chairman of De La Rue
Giori and Dynavest Holding & Cie SCA, the other shareholder, to settle the
arbitration claim which was outstanding between the parties, conditional upon
completion of the disposal.  The net cost of settling the arbitration claim
was £5.9m compared to the original claim of £125m.



Global Services Reorganisation



In May 2001, we announced our intention to bring together the broad range of
De La Rue's capabilities in Global Services and Security Products, under
common leadership and management.  Jon Marx, who was appointed to lead the
division in May, has made considerable progress in building capabilities
around three market focussed businesses of Brand, Identity Systems and
Finance.  For the purposes of consistency in financial reporting, as announced
in May 2001, the Security Products business, which mainly addresses the
traditional non-banknote markets, such as travellers cheques, vouchers and
stamps will continue to report as part of Security Paper and Print divisional
results.



Operations



Cash Systems
                                                  2001/02   2000/01   2000/01
                                                Half Year Half Year Full Year
                                                     £m        £m        £m


Sales                                              168.7*     120.2     262.4

Operating profit (before goodwill amortisation)     14.4*       3.8      17.0



* includes acquisitions: sales of £20.9m and operating profit of £0.4m



Cash Systems delivered a strong operating performance in the first half, which
was particularly pleasing as the division also had to integrate several
bolt-on acquisitions acquired during the first half.  First half performance
was ahead of our expectations with operating profits (excluding acquisitions)
at £14.0m, up £10.2m on the comparable period last year.  With the emphasis
now away from restructuring towards generating sales growth it was pleasing to
report increased revenues of £147.8m (excluding acquisitions), up £27.6m or
23% on the same period last year.  The division has also maintained its strong
order book (particularly in Branch Cash Solutions), which remains ahead of
last year.  Whilst we are forecasting strong sales growth in the second half
it will not be as high as the first half which benefited in particular from
euro related shipments and TwinsafeTM II sales.  Operating margins (excluding
acquisitions) for the first half were 9.5% and we are still on track to
achieve our objective of a 10% margin for the 2001/2002 financial year.



The launch of the euro in January 2002 represents a significant opportunity
for this year (with some follow on next year) and we estimate that the benefit
for the division this financial year of the euro conversion will be
approximately 8% of sales.



Business Stream Performance



Branch Cash Solutions has again performed well under the management of Germain
Roesch and the business remains strong in all key regions.  Orders and sales
for both Teller Cash Dispensers and Teller Cash Recyclers were again
encouraging and during the first half orders of 720 units of the
TwinsafeTeller Cash Recyclers were taken.  The first half benefited from
increased sales via the new sales and distribution networks in Switzerland and
Belgium, and in particular of Twinsafe units.  The businesses were acquired
from Ascom Autelca AG in April 2001 and are now bedded in.  We have also now
launched the Twinsafe machine into the USA market generating significant
customer interest. The Original Equipment Manufacture (OEM) business, which
makes dispensing mechanisms for ATM machines, performed in line with
expectations.  As expected, sales were down reflecting the market's move to
mini-mechanisms which have a lower selling price.



During the first half much work has centred on the integration of our Cash
Processing business stream with the recently acquired CSI business.  We have
decided to maintain the CSI brand in certain markets and rename the business
stream Currency Systems.  In May 2001, we appointed Jonathan Ward, previously
Managing Director of Cash Processing, to head up the combined business. The
CSI integration and savings plans are progressing well and to date we have
announced the senior management team; integrated the sales and marketing
organisations; finalised the product integration and development plans, and we
are in the process of evaluating the impact on our manufacturing strategy.
The newly combined business will benefit from being a tightly run
organisation, focussed on its key markets but with a lower cost base.  More
importantly the business will be able to offer a more extensive range of cash
processing solutions for our customers.  First half sales were disappointing
in the combined operation but we remain confident about the outlook for the
business.



The Desktop Products business has performed in line with expectations with
first half sales driven by euro related products.  The business launched a
range of euro-ready note and coin counters earlier this year which has been
well received by those businesses involved in the changeover to the euro in
January 2002.  In May 2001, we acquired ATS Money Systems, Inc. (ATS), a
leading US provider of cash handling solutions hardware and software,
predominantly to the retail sector for US$ 14.0m. Work continues on the
integration of ATS as well as further work on formulating the general retail
strategy.



The division's Customer Service business, which continues to be a key
component of Cash Systems' strategy, performed strongly with good underlying
sales growth and now accounts for 30% of total sales.  During the period we
acquired the Canadian company Haliburton & White and have further expanded our
geographic network and invested in our operational capability.



Security Paper & Print
                                  2001/02            2000/01            2000/01
                                Half Year          Half Year          Full Year
                                       £m                 £m                 £m


Sales                               108.0              103.9              212.8

Operating profit                     19.3               23.8               50.4





Overall profits in the Currency business have declined.  The main reasons for
this was the absence of India banknote paper orders (unlikely to resume until
2003) which last year accounted for about 15% of banknote paper volumes and
product mix.  The banknote business, however, continues to flourish, and given
the strong order book the emphasis for the remainder of the year will centre
on order fulfilment.  During the first half the European Central Bank
confirmed a requirement for De La Rue to print an overspill order for euro
banknotes.  The contract is currently progressing well at our Gateshead, UK
factory.  During the first half, we also secured a further substantial
overspill contract from another customer and there is good order book coverage
for the second half on the banknote business. We expect a stronger second half
performance from Currency, more in line with the comparable period last year.
Cash generation has again been excellent in the first half.



Trading in the non-banknote business was down mainly because activity in De La
Rue Tapes, which produces security threads for banknotes, decreased because of
a reduction in demand from the Currency division; the business' move to a new,
modern facility has also caused some short-term disruption.  The UK printing
operations (in High Wycombe, Dunstable and Peterborough) have performed in
line with our expectations.



Global Services

                                       2001/02         2000/01         2000/01
                                     Half Year       Half Year       Full Year
                                           £m              £m              £m


Sales                                     19.3            23.5            47.9

Operating (loss)/profit                  (2.7)             0.9             1.0





Global Services had a very disrupted first half as the division underwent the
major reorganisation referred to earlier.  The reorganisation is now complete.


During the period, divisional revenues declined to £19.3m (2000/2001: £23.5m)
and the division made a loss of £2.7m, primarily due to a disappointing
performance from De La Rue Holographics and timing of sales contracts in the
Identity Systems business.



The wider brand market remains a significant opportunity and the Brand
business continues to benefit from its sector focus.  As announced last year,
part of the Microsoft Windows(R) labels contract is scheduled to move to a
plastic substrate through another supplier later this year but we have been
successful in retaining a larger share of this contract than anticipated.  The
X-box label contract with Microsoft, announced last year, has progressed well
with label production now well underway with shipment expected in the second
half.



De La Rue Holographics' revenues were down during the first half mainly as a
result of production issues related to supply of optical variable devices
(OVD's) to the banknote sector, in particular for the euro.  We have recently
taken several orders for the supply of euro OVD's and efforts centre on
ensuring we deliver against these orders in the second half.



The Identity Systems business also reported decreased revenues caused by
timing delays in a number of identity systems installations.  Trading will
pick up in the second half as the business has won a major passport and
national identity card contract for a Latin American government (sales value
of $20m over 8 years).  Under the contract, De La Rue will supply
approximately 14 million identity cards and nearly one million digitally
in-filled passports, which will be distributed from about 320 sites across the
country.  There is currently a great deal of interest from our Government
customers in upgrading the security of their national identity or passport
schemes and the business is well placed to benefit from them.



Associates



Following the disposal of our stake in De La Rue Giori the main associate is
Camelot, the UK lottery operator.  Profit from associates before interest and
tax rose by £2.1m to £4.5m because of the absence of losses incurred by De La
Rue Giori in the first half last year.  At Camelot profits were down as a
result of lower sales.  The second lottery licence commences on 27 January
2002 when De La Rue's effective shareholding decreases from 26.67% to 20%.
During October the Company received an interim dividend from Camelot of £15.4m
in respect of the first licence period.



Interest



The Group's net interest income of £1.3m is the same as last year as a result
of a £0.5m decline in interest received from associates offsetting a £0.5m
improvement in the Group's own interest costs (mainly interest receivable on
corporation tax refunds).  The reduction in interest income from associates
follows the disposal of De La Rue Giori and the reduction in Camelot's cash
balances as a result of the dividends paid out to shareholders in March of
this year.



Taxation



The adoption of FRS 19 has resulted in the restatement of last year's
effective tax rate upwards from 23% to 27% (both half year and full year) as
well as a credit to shareholders funds (as at 31/03/01) of £43.9m as a result
of bringing on balance sheet a deferred tax asset.  The underlying effective
tax rate has increased from 27% to 28%.  The increase in the effective rate is
mainly because of the changing geographical mix of the Group's earnings to
higher tax rate jurisdictions.  We expect that, in the absence of unforeseen
events, the tax rate for the full year will be at a similar level.



Exceptional Items



The net exceptional credit before tax was £7.2m.  The most significant item
was the disposal of our 50% stake in De La Rue Giori, which resulted in an
exceptional gain of £14.5m.  Offsetting this gain were the £5.9m costs
(including legal fees) of settling the claim brought by our joint venture
partner in De La Rue Giori (details of which were provided in the 2001 annual
report).



The integration of CSI with our Cash Processing business (now re-named
Currency Systems) will result in an estimated pre-tax restructuring charge of
£6m to £7m, of which £1.5m was incurred in the first half.  The balance is
likely to be incurred in the second half.



Cashflow and Borrowings



The build up of working capital in the first half is mainly to satisfy the
higher order book, particularly within Cash Systems.  Despite this the
operating cashflow in the first half was still £18.3m.  We expect the working
capital position to start unwinding over the second half although given the
higher level of sales activity it is probable that overall working capital
levels will be higher at the end of the year, than at the beginning.



Closing net debt of £29.8m represents a £65.9m change from the £36.1m net cash
position at 31 March 2001.  Since the year end we have spent £57.6m on
acquisitions (including debt acquired) and £10.2m buying in our own shares to
cover share option exposures.  During the first half we also paid out both
last year's interim and final dividends, amounting to £24.0m.



Outlook



Since the half year overall trading in our operations has been ahead of last
year and in line with our expectations.



Whilst no business is immune to the economic cycle our trading performance
this year is underpinned by the strength of our order books in both Cash
Systems and Currency and helped by the restructuring that has taken place in
earlier years.  The financial strength of the company, our leading market
positions, strong order books and calibre of our people allow us to be
confident about the future prospects for the Group.




Notes to Editors


1 An interview with CEO Ian Much can be viewed at the De La Rue http://
  www.delarue.com/financial/reports and Cantos website http://www.cantos.com/

2 High resolution images can be downloaded from NewsCast at http://
  www.newscast.co.uk/

3 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 travellers cheques and vouchers.  Employing
  almost 7,000 people in 31 countries, the company is also a leading provider
  of cash handling equipment and software solutions to banks and retailers
  worldwide, helping them to reduce the cost of handling cash.    Applying our
  core brand values of security, integrity and trust, De La Rue is at the
  centre of some of the most innovative and exciting developments in the secure
  products and services market.  We are pioneering new technologies from
  tailored solutions to protect the world's brands through to government
  identity solutions in secure passports and identity cards.




GROUP PROFIT AND LOSS ACCOUNT

FOR THE YEAR 29 SEPTEMBER 2001


                                                  2001/02    2000/01    2000/01
                                                Half Year  Half Year  Full Year
                                                          (restated) (restated)
Notes                                                  £m         £m         £m


   Turnover                                         273.5      244.7      517.4

   Continuing operations                             20.9          -          -
   Acquisitions                                     294.4      244.7      517.4

   Discontinued operations                            9.5        2.9        7.4
1                                                   303.9      247.6      524.8
   Operating profit                                  30.6       28.5       68.4

   Continuing operations                                -      (0.4)      (0.8)
        -  Reorganisation costs                      30.6       28.1       67.6

   Acquisition                                        0.4          -          -
        -  Reorganisation costs                     (1.5)          -          -
                                                    (1.1)          -          -
                                                     29.5       28.1       67.6
   Discontinued operations                          (1.2)      (0.7)      (1.5)
   Operating profit before goodwill                  28.3       27.4       66.1
   amortisation
2  Goodwill amortisation                            (1.3)      (0.2)      (0.5)
1  Operating profit                                  27.0       27.2       65.6

   Share of profits of associated companies           4.5        2.4       4.8*
   Loss on the disposal of continuing                   -      (3.0)      (3.0)
   operations
3  Profit on sale of investments                      8.6          -          -
3  Profit/(loss) on disposal of fixed assets          0.1      (0.2)          -
   Profit on ordinary activities before              40.2       26.4       67.4
   interest

   Net interest:            Group                       -      (0.5)      (1.2)
                            Associates                1.3        1.8        4.4
                                                      1.3        1.3        3.2
   Profit on ordinary activities before              41.5       27.7       70.6
   taxation

   Tax on profit on ordinary activities             (8.5)      (8.5)      (7.5)
   Profit on ordinary activities after taxation      33.0       19.2       63.1

   Equity minority interests                        (1.1)          -      (0.2)
   Profit for the period                             31.9       19.2       62.9

   Dividends                                        (8.0)      (7.6)     (24.0)
   Transferred to reserves                           23.9       11.6       38.9

4  Earnings per ordinary share                       16.8       10.1      33.1p
   Diluted earnings per ordinary share               16.4       10.0      32.6p
4  Headline earnings per ordinary share before       13.4       12.5      30.9p
   reorganisation costs & goodwill amortisation
   Dividends per ordinary share                       4.2        4.0      12.6p
   * After deducting £3.4m of exceptional
   charges




GROUP BALANCE SHEET

AT 29 SEPTEMBER 2001


                                                  2001/02    2000/01    2000/01
                                                     Half  Half Year  Full Year
                                                     Year (restated) (restated)
                                                       £m         £m         £m

   Fixed assets
   Intangible assets                                 44.7        7.7        4.9
   Tangible assets                                  173.6      170.9      177.0
   Investments :       Associates                    33.8       57.4       43.3
                       Other investments              4.9        4.5        4.8
                       Own shares                    15.4        5.9        5.6
                                                    272.4      246.4      235.6
   Current assets
   Stocks                                           104.6       77.5       80.1
   Debtors                                          145.6      100.4      114.6
   Deferred taxation                                 34.9       44.9       43.9
   Cash at bank and in hand                          58.6       34.6       89.5
                                                    343.7      257.4      328.1
   Creditors: amounts falling due within one
   year
   Short term borrowings                           (46.6)     (14.6)     (27.7)
   Other creditors                                (203.1)    (175.4)    (206.8)
   Net current assets                                94.0       67.4       93.6
   Total assets less current liabilities            366.4      313.8      329.2
   Creditors: amounts falling due after more
   than one year
   Long term borrowings                            (41.8)     (29.7)     (25.7)
   Other creditors                                  (0.3)      (2.0)      (0.7)
   Provisions for liabilities and charges          (41.3)     (55.3)     (45.3)
                                                    283.0      226.8      257.5
   Capital and reserves
   Called up share capital                           48.5       48.1       48.2
   Share premium account                              7.1        1.5        3.3
   Revaluation reserve                                1.8        1.8        1.8
   Other reserve                                   (83.8)     (83.8)     (83.8)
   Profit and loss account                          306.4      256.4      285.4
   Shareholders' funds (including non-equity        280.0      224.0      254.9
   interests)
   Equity minority interests                          3.0        2.8        2.6
                                                    283.0      226.8      257.5







GROUP CASH FLOW STATEMENT

FOR THE HALF YEAR ENDED 29 SEPTEMBER 2001


                                                       2001/02 2000/01 2000/01
                                                          Half    Half    Full
                                                          Year    Year    Year
Notes                                                       £m      £m      £m

5a Net cash inflow from operating activities              18.3    18.0    68.6
   Dividends received from associated companies            8.7     6.2    21.2

5b Returns on investments and servicing of finance       (0.3)   (0.6)   (1.6)
   Taxation                                              (9.6)     1.9   (5.4)
5c Capital expenditure and financial investment         (10.0)   (9.8)  (20.8)
5d Acquisitions and disposals                           (40.9)   (3.5)   (4.2)
   Equity dividends paid                                (24.0)  (24.4)  (24.1)
   Net cash (outflow)/inflow before use of liquid       (57.8)  (12.2)    33.7
   resources and financing
5e Management of liquid resources                         38.9    50.6     0.3
5f Financing                                              25.3  (45.7)  (31.4)
   Increase/(decrease) in cash in the period               6.4   (7.3)     2.6

   Reconciliation of net cash flow to movement in
   net (debt)/funds
   Increase/(decrease) in cash in the period               6.4   (7.3)     2.6
   Cash inflow from decrease in liquid resources        (38.9)  (50.6)   (0.3)
   Cash (inflow)/outflow from (increase)/decrease in    (21.2)    46.9    34.2
   debt
   Change in net funds resulting from cash flows        (53.7)  (11.0)    36.5
   Loans and finance leases acquired with subsidiaries  (12.7)       -       -
   Translation difference                                  0.5   (0.8)   (2.5)
   Movement in net (debt)/cash in the period            (65.9)  (11.8)    34.0
   Net funds at start of period                           36.1     2.1     2.1
   Net (debt)/funds at end of period                    (29.8)   (9.7)    36.1
   Analysis of net (debt)/funds
   Cash                                                   33.4    21.3    25.4
   Liquid resources                                       25.2    13.3    64.1
   Overdrafts                                            (4.5)  (10.3)   (3.3)
   Other debt due within one year                       (42.1)   (4.3)  (24.4)
   Other debt due after one year                        (41.8)  (29.7)  (25.7)
   Net (debt)/funds at end of period                    (29.8)   (9.7)    36.1




GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE HALF YEAR ENDED 29 SEPTEMBER 2001


                                                 2001/02    2000/01    2000/01
                                               Half Year  Half Year  Full Year
                                                         (restated) (restated)
                                                      £m         £m         £m


   Profit for the period:       Group               28.0       17.2       60.7
                                Associates           3.9        2.0        2.2
                                                    31.9       19.2       62.9

   Currency translation differences on
   foreign
      currency net investments                     (2.9)        1.3        3.0
   Total recognised gains for the period            29.0       20.5       65.9






RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

FOR THE HALF YEAR ENDED 29 SEPTEMBER 2001


                                                  2001/02    2000/01    2000/01
                                                Half Year  Half Year  Full Year
                                                          (restated) (restated)
                                                       £m         £m         £m

   Profit for the period                             31.9       19.2       62.9
   Dividends                                        (8.0)      (7.6)     (24.0)

                                                     23.9       11.6       38.9
   Share capital issued                               4.1        1.2        3.1
   Currency translation differences on foreign
      currency net investments                      (2.9)        1.3        3.0
   Goodwill  - Cash Systems South Africa                -        3.8        3.8
               disposal
   Net increase in shareholders' funds               25.1       17.9       48.8
   Opening shareholders' funds                      254.9      206.1      206.1

   Closing shareholders' funds                      280.0      224.0      254.9








NOTES TO THE INTERIM STATEMENT


1  Segmental analysis                               2001/02  2000/01  2000/01
                                                       Half     Half     Full
                                                       Year     Year     Year
                                                         £m       £m       £m


   Turnover by class of business
   Continuing operations    Cash Systems              147.8    120.2    262.4
                            Security Paper and        108.0    103.9    212.8
                            Print
                            Global Services            19.3     23.5     47.9
         - Less inter-segment sales                   (1.6)    (2.9)    (5.7)
                                                      273.5    244.7    517.4
   Acquisition              Cash Systems               20.9        -        -
   Discontinued operations  Global Services             9.5      2.9      7.4
                                                      303.9    247.6    524.8
   Operating profit by class of business
   Continuing operations     Cash Systems              14.0      3.8     17.0
                             Security Paper and        19.3     23.8     50.4
                             Print
                             Global Services          (2.7)      0.9      1.0
                                                       30.6     28.5     68.4

         - Reorganisation    Cash Systems                 -    (0.4)    (0.8)
           costs
   Acquisition               Cash Systems               0.4        -        -
         - Reorganisation    Cash Systems             (1.5)        -        -
           costs
   Discontinued operations   Global Services          (1.2)    (0.7)    (1.5)
                                                       28.3     27.4     66.1
   Amortisation of goodwill  Cash Systems             (1.2)    (0.1)    (0.2)
                             Global Services          (0.1)    (0.1)    (0.3)
                                                      (1.3)    (0.2)    (0.5)
                                                       27.0     27.2     65.6

   Turnover by geographical area of operation
   United Kingdom and Ireland                         165.6    158.8    335.2
   Rest of Europe                                     116.2     68.1    162.5
   The Americas                                        58.9     47.3    101.8
   Rest of world                                       20.8     26.4     49.8
   Less inter-area sales                             (57.6)   (53.0)  (124.5)
                                                      303.9    247.6    524.8
   Operating profit by geographical area of
   operation

   United Kingdom and Ireland                          1.9*     14.2     44.2
   Rest of Europe                                      21.1      9.2     19.4
   The Americas                                         2.4      2.1      0.3
   Rest of world                                        1.6      1.7      1.7
                                                       27.0     27.2     65.6
   Turnover by geographical area of destination
   United Kingdom and Ireland                          40.4     32.5     66.0
   Rest of Europe                                     124.7     74.0    170.0
   The Americas                                        75.4     67.3    135.2
   Rest of world                                       63.4     73.8    153.6
                                                      303.9    247.6    524.8
   * after deducting re-organisation costs of £1.5m.


2 Goodwill

  For the first time we have split out on the face of the income statement the
  goodwill charged to operating profits of £1.3m (2000: £0.2m).  This is
  because, following a number of acquisitions at the beginning of this year,
  the goodwill charge has become a significant amount.  Goodwill is being
  amortised over 20 years unless a shorter period is prudent, for example,
  because the technology on which the acquisition is based is unproven.  The
  estimate for the full year is £2.8m based on currently capitalised goodwill.

3 Profit on sale of investments

  The £8.6m profit on sale of investments is after deducting £5.9m net costs in
  respect of settling the arbitration claim by our joint venture partner in De
  La Rue Giori SA.

  Profit/(loss) on disposal of fixed assets

  Profit on disposal of fixed assets                  4.1          -          -
  Loss on disposal of fixed assets                  (4.0)      (0.2)          -
                                                      0.1      (0.2)          -



                                                  2001/02    2000/01    2000/01
                                                Half Year  Half Year  Full Year
                                                          (restated) (restated)
4 Reconciliation of earnings per share              pence      pence      pence
                                                      per        per        per
                                                    share      share      Share

  As calculated under FRS 14                         16.8       10.1       33.1
  Loss on the disposal of continuing operations         -        1.6        1.6
  Profit on sale of investments                     (5.0)          -          -
  Loss on disposal of fixed assets                      -        0.1          -
  Amortisation of goodwill                            1.0        0.5        1.1
  Headline earnings per share as defined by the      12.8       12.3       35.8
  IIMR
  Reorganisation costs                                0.6        0.2        0.4
  Share of associated company's exceptional             -          -        1.3
  items
  Exceptional release of tax provision                  -          -      (6.6)
  Headline earnings per share before items           13.4       12.5       30.9
  above

  The earnings per share of 16.8p as calculated under FRS 14 is the £31.9m
  profit for the period divided by 189,736,237






5  Notes to Group cash flow statement               2001/02   2000/01   2000/01
                                                  Half Year Half Year Full Year
                                                         £m        £m        £m
a  Reconciliation of operating profit to net cash
       inflow from operating activities
   Operating profit                                    27.0      27.2      65.6
   Depreciation and amortisation                       13.7      11.1      24.3
   Increase in stocks                                (14.5)     (5.6)     (2.4)
   (Increase)/decrease in debtors                    (25.1)       7.2     (4.9)
   Increase/(decrease) in creditors                    17.4    (18.0)     (7.4)
   Decrease in reorganisation provisions              (0.3)     (4.4)     (7.6)
   Other items                                          0.1       0.5       1.0
   Net cash inflow from operating activities           18.3      18.0      68.6

b  Returns on investments and servicing of
   finance
   Interest received                                    3.9       5.9       3.0
   Interest paid                                      (3.7)     (6.2)     (4.2)
   Interest element of finance lease payments             -     (0.1)     (0.1)
   Dividends paid to minority shareholders            (0.5)     (0.2)     (0.3)
   Net cash outflow from returns on investments
   and servicing of finance                           (0.3)     (0.6)     (1.6)

c  Capital expenditure and financial investments
   Purchase of tangible fixed assets                 (12.8)    (11.8)    (27.9)
   Purchase of intangible fixed assets                    -         -     (0.3)
   Sale of tangible fixed assets                        1.1       2.1       1.8
   Purchase of investments                                -     (0.1)     (0.9)
   Sale of investments                                 11.9         -       6.5
   Purchase of own shares                            (10.2)         -         -
   Net cash outflow for capital expenditure and
       financial investments                         (10.0)     (9.8)    (20.8)

d  Acquisitions and disposals

   Purchase of subsidiary undertakings               (44.9)     (3.7)     (4.8)
   Net cash acquired with subsidiary undertakings         -         -       0.4
   Sale of subsidiary undertakings                        -       0.2       0.2
   Sale of assets held for disposal                     4.0         -         -
   Net cash outflow for acquisitions and             (40.9)     (3.5)     (4.2)
   disposals

e  Management of liquid resources
   Net decrease in short term deposits                 38.9      50.6       0.3

f  Financing

   Debt due within one year:
        Loans Raised                                   19.7         -       3.6
        Loans repaid                                 (15.0)    (18.5)    (20.5)
   Debt due beyond one year:
        Loans Raised                                   17.0         -       1.5
        Loans repaid                                      -    (27.8)    (18.3)
   Capital element of finance lease rental            (0.5)     (0.6)     (0.5)
   repayments
   Share capital issued                                 4.1       1.2       2.8
   Net cash inflow/(outflow) from financing            25.3    (45.7)    (31.4)


6 The comparative figures for the 2000/01 half year and full year have been
  restated to reflect the effects of FRS19, Deferred Tax as follows:

  2000/01 Half Year                              Previously Adjustment Restated
                                                   Reported         £m       £m
                                                         £m
  Profit and Loss Account

  Profit on ordinary activities before taxation        27.7          -     27.7
  Tax on profit on ordinary activities                (7.2)      (1.3)    (8.5)
  Profit on ordinary activities after taxation         20.5      (1.3)     19.2
  Equity minority interests                               -          -        -
  Profit for the period                                20.5      (1.3)     19.2
  Dividends                                           (7.6)          -    (7.6)

  Transferred to reserves                              12.9      (1.3)     11.6



  Balance Sheet

  Current assets - Deferred taxation                      -       44.9     44.9

  Profit and Loss Account                             211.5       44.9    256.4



2000/01 Full Year
Profit and Loss Account

Profit on ordinary activities before taxation        70.6          -       70.6
Tax on profit on ordinary activities                (4.6)      (2.9)      (7.5)
Profit on ordinary activities after taxation         66.0      (2.9)       63.1
Equity minority interests                           (0.2)          -      (0.2)
Profit for the financial year                        65.8      (2.9)       62.9
Dividends                                          (24.0)          -     (24.0)

Transferred to reserves                              41.8      (2.9)       38.9



Balance Sheet

Current assets - Deferred taxation                      -       43.9       43.9

Profit and Loss Account                             241.5       43.9      285.4



7  This interim statement has been prepared in accordance with the guidelines
   published by the Accounting Standards Board.

8  The statement has been prepared applying the accounting policies described
   in pages 38 and 39 of the 2001 Annual Report and Accounts, and should be
   read in conjunction with the Report and Accounts.

9  The results for the half years to 29 September 2001 and 30 September 2000
   are unaudited and do not constitute the Group's statutory accounts.

10 The statutory accounts for the year ended 31 March 2001 have been delivered
   to the Registrar of Companies. The report of the auditors on those accounts
   was unqualified and did not contain a statement under either section 237(2)
   or 237(3) of the Companies Act 1985.

11 This interim statement was approved by the Board on 26 November 2001 and is
   being posted to all shareholders. Copies are available from the Company
   Secretary, De La Rue plc, De La Rue House, Jays Close, Viables, Basingstoke,
   Hampshire, RG22 4BS.