De La Rue plc (LSE: DLAR) (De La Rue, the “Group” or the “Company”) announces its full year results for the twelve months ended 25 March 2017 (the period or full year).
KEY FINANCIALS
The figures below are for continuing operations only and exclude the Cash Processing Solutions business which was sold on 22 May 2016.
|
2016/17
|
2015/16
|
Change
|
|
|
£m
|
£m
|
%
|
|
| Revenue |
461.7
|
454.5
|
2%
|
|---|---|---|---|
| Adjusted operating profit*(1) |
70.7
|
70.4
|
0%
|
| Adjusted operating margin*(1) |
15.3%
|
15.5%
|
(20bpts)
|
| Reported operating profit |
70.2
|
66.8
|
5%
|
|
|
|
|
|
| Adjusted profit before tax*(1) |
58.7
|
58.5
|
0%
|
| Reported profit before tax |
58.2
|
54.9
|
6%
|
|
|
|
|
|
| Adjusted basic earnings per share*(2) |
47.1p
|
48.1p
|
(2%)
|
| Reported basic earnings per share |
47.2p
|
46.8p
|
1%
|
| Dividend per share |
25.0p
|
25.0p
|
0%
|
* This is a non-IFRS measure. The Directors are of the opinion that these measures give a better understanding of the underlying performance of the business. For further explanations and reconciliation to the comparable IFRS measure see reconciliation in note 14. “Reported” measures are on an IFRS basis.
(1) Excludes exceptional item charges of £0.4m (2015/16: £3.6m) and amortisation of acquired intangible assets of £0.1m (2015:16: £nil).
(2) Excludes exceptional item charges of £0.4m (2015/16: £3.6m), amortisation of acquired intangible assets of £0.1m (2015:16: £nil) and related tax credits of £0.6m (2015/16: £2.3m).
Revenue and adjusted operating profit growth rates for the Identity Solutions and Product Authentication reflect a change in allocation of results for these segments made in the year. See “Operating reviews” section for further details.
FINANCIAL HIGHLIGHTS
- Group revenue +2% and adjusted operating profit up marginally year on year
- Resilient performance in our Currency business, improved mix in Banknote Print and increased Paper volumes partially offsetting the impact of a concluded security features contract
- Identity Solutions revenue +5% and adjusted operating profit +37%
- Product Authentication & Traceability revenue +20% and adjusted operating profit +29%
- Net debt up £14.8m to £120.9m following the $25m acquisition of DuPont Authentication
- Proposed final dividend of 16.7p; Full year dividend maintained at 25.0p
- Group 12 month order book of £387m providing good visibility and confidence for the year ahead
STRATEGIC AND OPERATIONAL HIGHLIGHTS
Good progress in delivering our strategic plan:
Optimise & Flex
- Banknote Print volumes similar to last year at 7.1bn notes
- Banknote Paper volumes increased by 18% to 11,800 tonnes, a seven year high
- Restructuring of print manufacturing footprint on track to deliver c£13m annual cost savings from FY18/19 – two banknote print lines removed in Malta; retaining third line for operational flexibility
Invest & Build
- Accelerating product development through increased investment in R&D and product management
- Good momentum in Polymer continues – volumes nearly quadrupled to 380 tonnes
- Completed acquisition of DuPont Authentication, further broadening our portfolio of security features to include highly specialised Lippmann 3D Holograms
- Centre of excellence for security print opened in Malta, including new capability to produce polycarbonate - first volume customer secured
Martin Sutherland, Chief Executive Officer of De La Rue, commented:
“De La Rue has delivered a good performance this year. We are two years into our five year strategic plan and have made solid progress against our objectives to diversify the business and improve the quality of earnings. Identity Solutions and Product Authentication are both delivering good growth and are underpinned by the resilience of our Currency business.
“Our investment in product management and R&D has seen us introduce six new products into our pipeline, including DLR Analytics, a software solution to help central banks manage their cash cycle requirements. We are already piloting with 26 countries at launch.
“In January, we completed our first acquisition in 14 years. DuPont Authentication is a business with a strong intellectual property portfolio, global blue-chip customers and a committed and experienced workforce. This transaction further strengthens our position in the strategically important and growing product authentication market.
“With continuing good momentum in delivering our 2020 strategic plan and a strong 12 month order book of £387m, I am confident that we will deliver on our expectations for the year.”
Enquiries:
| De La Rue plc | +44 (0)1256 605000 | |
| Martin Sutherland | Chief Executive Officer | |
| Jitesh Sodha | Chief Financial Officer | |
| Lili Huang | Head of Investor Relations | |
| Brunswick | +44 (0)207 404 5959 | |
| Katharine Spence | ||
| Oliver Hughes |
A presentation to analysts will take place at 9:00 am BST on 23 May 2017 at The Lincoln Centre, 18 Lincoln’s Inn Fields, WC2A 3ED. The presentation will also be accessible via a conference call and a video webcast. Dial-ins for the conference call are +44 (0)20 3059 8125, passcode: De La Rue. An archive of the conference call is available for a week from midday 23 May 2017, which is accessible via +44 (0) 121 260 4861, passcode: 5990361#. For the live webcast, please register at www.delarue.com where a replay will also be available subsequently.
