Trading Statement

De La Rue PLC
26 March 2002



                                 DE LA RUE PLC



News Release 26 March 2002



                    ANALYST AND SHAREHOLDER BRIEFING, UPDATE

      ON CURRENT TRADING AND REVIEW OF GLOBAL BANKNOTE PRINTING OPERATIONS



Analyst and shareholder briefings - 26 March 2002



De La Rue, the cash to secure transactions group, is today giving a presentation
to analysts and shareholders providing an overview of its Cash Systems division.
This announcement covers the main messages that will be delivered at this
meeting. Copies of the presentation are available on the website www.delarue.com
/financial and from the company on request.



The briefing will provide a detailed overview of divisional strategy as well as
information on market dynamics and the growth potential of Cash Systems'
business streams.  More specifically, as it continues to follow a growth
strategy, De La Rue sees opportunities for sustained progress in revenue growth
in the division through:



  • Geographical expansion and exploring new market opportunities
  • Expanding and improving the product range (both organically and by
    acquisition)
  • Exploiting the considerable opportunities which exist in the division's
    Customer Service business



The Company believes a target for the division of £400m sales by the end of the
financial year 2003/2004 (2000/2001 £262.4m) is achievable through this
strategy.



Update on current trading



The Group's preliminary results for the year ending 30 March 2002 will be
announced on Wednesday 29 May 2002.  De La Rue is also today providing analysts
with an update on current trading, given the close proximity of the meeting to
the start of De La Rue's closed period.



  • Cash Systems has continued to enjoy excellent trading in the second half,
    although, as stated at the interim results, sales growth will not be at
    first half levels.
  • Currency has performed well with a robust performance from the banknote
    business offsetting the anticipated softness on the paper side.
  • Trading in the traditional non-banknote Security Products business
    continues to disappoint and has not improved since the first half.
  • Global Services has had a better second half and we expect trading
    activity to recoup most of the £2.7m loss incurred during the first half.
  • Cash generation has been strong in the second half.



Overall the Company expects earnings to be in line with expectations.



Review of global banknote printing operations and closure of Singapore facility



De La Rue has recently completed a comprehensive review of its global banknote
printing operations which has highlighted major advances in efficiency and
flexibility that have been achieved in all its plants over the last three years.



Consequently the Company has decided to cease banknote manufacturing in
Singapore and focus its operations in its other four factories in the United
Kingdom, Malta, Sri Lanka and Kenya.  By re-organising these locations, four
factories will be able to produce the same volume of banknotes as were
previously produced by five plants while continuing to provide our worldwide
customer base with the highest levels of service and flexibility that they
expect and receive from De La Rue.



The estimated cost of closure, which will be expensed in the current year, will
be approximately £7m (pre-tax) of which £3.0m is non-cash. The re-organisation,
which will involve the transfer of capital equipment from Singapore and some
additional resourcing at the remaining sites to handle their increased
throughput, is expected to be completed in 9 months.  As a result the main
benefits of the move will only be felt in the 2003/2004 financial year.



Consultation with the workforce in Singapore is now taking place as part of the
orderly transfer of operations to the other locations and support will be
provided to the Company's staff in Singapore.



For further information please contact:



De La Rue plc

Paul Hollingworth, Finance Director                    01256 605307
Mark Fearon, Head of Corporate Affairs                 01256 605303
Stephen Breslin, Brunswick                             020 7404 5959



                                     -ends-

Note to editor



1.      De La Rue is the world's leading commercial producer of banknotes with
about 45-50% of the available banknote market.  The Singapore banknote printing
was opened in 1984 and currently employs 321 people.



2.      The Cash Systems briefing is being held at 9:30am at Smeatons Vaults,
The Brewery, Chiswell Street, London EC1Y 4SD.  Enquiries regarding attendance
to Diana Brown, De La Rue plc - 01256 605307



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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