Interim Results November 2008

26 November 2008

INTERIM STATEMENT
SIX MONTHS TO 27 SEPTEMBER 2008

HIGHLIGHTS

• Revenues* up 14.4 per cent, profit before tax** up 23.9 per cent and headline earnings per share*** up 28.1 per cent
  
  
• Operating profit margin* improved by 1.3 percentage points to 17.8 per cent
  
  
• Interim dividend per share increased by 110 per cent to 13.7p in line with previously announced dividend policy
  
  
• Successful completion of the disposal of Cash Systems+ for a cash consideration of £360.0 million
  
  
• Return of £460.0 million, equivalent to 305 pence per share, to shareholders on 28 November, 2008
  
  
• James Hussey to succeed Leo Quinn as CEO with effect from 1 January 2009. For the last four years, James has been Managing Director of the Security Paper and Print Division (SPPD), which comprises the businesses of the continuing Group
  
  
• The Group enters the second half year with continued growth in its order book, which provides excellent visibility for the full year and into the first half of 2009/2010. Accordingly, the Board remains confident in the outlook for the current year

KEY FINANCIALS
(Continuing Group excluding the disposed business of Cash Systems – excluding CPS)

* Group revenue, Group operating profit and Group operating cash flow is reported for continuing operations
** Group profit before tax is reported for continuing operations before exceptionals
*** Headline earnings per share are reported based on continuing operations before exceptionals. Basic earnings per share are reported for continuing operations.
+ Excluding Cash Processing Solutions (CPS) which has been retained within the Continuing Group

Nicholas Brookes, Chairman of De La Rue plc, commented:

"The Group has delivered an outstanding performance. These results demonstrate the continuing success of our strategy to drive profitable growth through innovation and productivity.

"The Cash Systems disposal has removed our exposure to the retail banking sector and enables management to focus on our core business in Security Paper and Print.

"Shareholders have approved the Group's proposal to return capital totalling £460.0 million, comprising the net proceeds of the sale of Cash Systems and the introduction of a modest level of debt on the balance sheet.

Board changes

"The sale of Cash Systems and subsequent return of capital complete the strategic programme initiated by Leo Quinn in November 2004. Accordingly, Leo has informed the Board of his decision to leave De La Rue to pursue new challenges.

"As CEO, Leo has led a team which has transformed the Group's portfolio and culture to build substantial value, of which £780m will have been returned to investors. He leaves the Group with strong foundations and with enhanced prospects. We thank him for his drive and leadership, which has created significant value for shareholders, and wish him well for the future.

"James Hussey is appointed De La Rue's new CEO effective 1 January 2009. For the last four years, James has been Managing Director of the Security Paper and Print Division - which comprises the continuing Group – and has more than 25 years' experience within De La Rue. The Board is pleased to have such a strong internal successor and is confident that James will continue to build on the achievements of De La Rue in recent years.

Outlook

"We enter the second half year with continued growth in our order book, which provides excellent visibility for the full year and into the first half of 2009/2010. Accordingly, the Board remains confident in the outlook for the current year."

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26 November 2008

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