Trading update

RNS Number : 9438Q

De La Rue PLC

12 November 2012

 



12 November 2012

TRADING UPDATE

De La Rue plc (DLAR.L / DLAR.LN) is today updating the market on trading for the six months to 29 September 2012 and its outlook for the remainder of the current financial year.

Performance in the first half of the financial year was in line with our expectations with Group operating profits estimated to be c£33m, up 5% on the 6 months to 24 September 2011 on sales 3% higher at c£245m. Banknote print volumes were up 4% at 2.9bn notes while banknote paper volumes declined 15% to 4,500 tonnes reflecting the more challenging market following the introduction of additional capacity by other manufacturers.  We have continued to make good progress with the Improvement Plan and this together with lower cotton prices has offset the effects of the paper volume movement and an adverse Currency "mix" compared with the corresponding period.

The Group's order book at 29 September 2012 (for the 12 months ahead) was £248m - the same value as at the start of the financial year.

The Group's IMS, issued on 24 July 2012, referred to, inter alia, important opportunities in the pipeline yet to be confirmed for production in the current financial year.  Since then, as expected, a number of important orders have been received for delivery in the 2013/14 financial year.  However, a number of significant orders which had been expected and planned for production in the second half of the current financial year have continued to be delayed.  It will now be too late for these orders to benefit the current financial year, and as a result the Board expects that the financial results of the Group for 2012/13 will be similar to those for 2011/12. 

The Board remains confident that the delayed orders will be received for shipment in 2013/14 and in delivering the Improvement Plan, which has a target 2013/14 operating profit of in excess of £100m. 

De La Rue will announce its interim results on 27 November 2012.

For enquiries, please contact:

De La Rue plc		[phone]
Tim Cobbold	Chief Executive
Colin Child	Group Finance Director
Rob Hutchison	Group Director of Communications
Brunswick		[phone]
Jon Coles
Zoe Bird

 

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