INTERIM STATEMENT - SIX MONTHS TO 29 SEPTEMBER 2007

NEWS RELEASE : 27 November 2007

INTERIM STATEMENT

SIX MONTHS TO 29 SEPTEMBER 2007

HIGHLIGHTS

  • Sales up 5.1 per cent, profit before tax up 22.6 per cent and headline earnings per share up 34.6 per cent*
  • Group operating profit margin up 2.2 percentage points to 14.2 per cent
  • Interim dividend increase of 12 per cent to 6.53 per share
  • Closing net cash of £43.3m after capital returns of £99.8m in the first half through ordinary and special dividends and share buy back programme
  • Review of the Group’s strategy and financial structure going forward
  • Security Paper and Print second half performance will be significantly ahead of last year

KEY FINANCIALS

Half Year

2007/2008

£m

Half Year

2006/2007

£m

Change

Sales

345.1

328.4

+5.1%

Profit before tax

53.8

43.9

+22.6%

Headline earnings per share*

24.9p

18.5p

+34.6%

Basic earnings per share

22.9p

18.5p

+23.8%

Operating cash flow

30.6

51.2

-40.2%

Net cash at end of period

43.3

98.9

Dividends per share

6.53p

5.83p

+12.0%

(*See note 6 to the financial statements)

Nicholas Brookes, Chairman of De La Rue plc commented:

“This is an excellent set of results. Our strategy of strengthening De La Rue’s individual businesses by driving both innovation and productivity continues to build shareholder value.

“The Group continues to have a strong order backlog in both operating divisions, providing a solid platform for both the current financial year, and in the case of Security Paper and Print, extending through the first half of next year. Consequently, given the strength of the order book in Currency and the benefits of continuing to operate at high levels of productivity and capacity, we expect second half performance in Security Paper and Print to be significantly ahead of the corresponding period last year. Cash Systems continues to trade in line with expectations.

“These results demonstrate the achievements of the first phase in our programme to build substantially improved shareholder returns. Consequently, the Board is initiating a strategic review to define the next phase of the Group’s development, including an assessment of the Group’s structure, the appropriate balance sheet capitalisation and dividend policy. The Board would expect to update the market on this strategic review at the full year results in May 2008.”

For further information, please contact:

Leo Quinn Group Chief Executive +44 (0)1256 605303

Stephen King Group Finance Director +44 (0)1256 605307

Mark Fearon Head of Corporate Affairs +44 (0)1256 605303

Andrew Lorenz Financial Dynamics +44 (0) 207 269 7291

27 November 2007