De La Rue plc 2016/17 half year results

Solid performance underpinned by strong order book and good strategic progress

De La Rue plc (LSE: DLAR) (De La Rue, the “Group” or the “Company”) announces its half year results for the six months ended 24 September 2016 (the period or half year).

The figures below show continuing operations, excluding the Cash Processing Solutions business which was sold on 22 May 2016.

  Half Year
Half Year
Revenue 189.5 188.7 0%
Underlying operating profit * 24.0 23.6 2%
Underlying operating margin * 12.7% 12.5% 20bpts
Underlying profit before tax * 18.2 17.6 3%
Reported profit before tax 17.2 25.1 (31%)
Underlying earnings per share ** 14.0p 14.6p (4%)
Reported earnings per share 13.2p 25.0p (47%)
Dividend per share 8.3p 8.3p 0%

* Before net exceptional charge of £1.0m (H1 2015/16: £7.5m income).
** Underlying EPS is calculated before exceptional charge and income, and exceptional tax credits of £0.2m (H1 2015/16: £3.0m).

The Directors are of the opinion that these measures give a better indication of underlying performance.


  • Half year performance in line with expectations, full year outlook unchanged
  • Year on year revenue flat and underlying operating profit up 2% despite the impact of a c£30m contract which concluded in H2 2015/16
  • Currency revenue down 2%, underlying operating profit up 3%
  • Product Authentication and Traceability revenue up 10% and underlying operating profit up 24%
  • Net debt increased by £9.4m to £115.5m
  • Group 12 month order book remained strong at £409m, providing good visibility for the rest of the year and beyond
  • Concluded pension deficit funding plan with reduced cash contributions in 2017/18 and 2018/19
  • Interim dividend maintained at 8.3p


Optimise & Flex – on track to deliver operational flexibility and planned cost savings

  • Banknote Print volumes up 22% to 3.3bn notes, reflecting success in winning both overspill and relationship orders
  • Banknote Paper volumes up 8% to 5,300 tonnes
  • Successful launch of new Bank of England £5 polymer notes, designed and printed by De La Rue. Printing of £10 polymer notes underway
  • Agreement to enter 60/40 joint venture with the Government of Kenya, which will strengthen our position in East Africa
  • Restructuring of manufacturing footprint on track

Invest & Build – good momentum building in growth segments

  • Good momentum in Polymer
    • Second significant volume customer win
    • 15 note issuing authorities secured since launch in 2012
  • Holographic foil security feature for polymer launched and issued into circulation on the Gibraltar £100 during H1, further enhancing our polymer offering
  • Active™ - our latest security thread with lenticular technology - in circulation on first note on Bahamas $10
  • Secured two multi-year Identity Solutions contracts with Qatar and Barbados
  • DLR Certify™ track and trace system successfully deployed with Cameroon as the first customer

Martin Sutherland, Chief Executive Officer of De La Rue, commented:

“De La Rue’s half year results are in line with our expectations. The Currency business has shown strength and resilience despite the impact from the conclusion of a material contract last year. Both Banknote Print and Banknote Paper have performed well with increased volumes.

“De La Rue continues to make good progress against our 2020 strategic plan. We have further strengthened our position in the fast growing East Africa region through the agreement to form a joint venture with the Government of Kenya. I am also pleased with the progress in Polymer where we have secured a second volume customer. We now supply polymer substrate to 15 issuing authorities, representing c40% of total polymer customers. Although the contribution to the Group from Polymer is still small, we are optimistic about its potential growth in the coming years.

“In non Currency businesses, we have secured two multi-year Identity Solutions contracts and gained early traction in the enterprise market for Product Authentication and Traceability.

“While we expect little impact in the current financial year, as a major UK-based exporter with more than 80% of our revenue from outside the UK, we believe that we would benefit from a sustained weakness of Sterling. We are also encouraged by our 12 month closing order book of £409m and the early strategic momentum in the key future growth areas. We remain confident of the business’ outlook for the rest of the year and beyond.”


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
Jon Coles    
Oliver Hughes    

A presentation to analysts will take place at 9:00 am GMT on 22 November 2016 at the Lincoln Centre, 18 Lincoln’s Inn Fields, WC2A 3ED. The presentation will also be accessible via a conference call and an audio 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 22 November 2016, which is accessible via +44 (0) 121 260 4861, passcode: 4596 218#. For the live webcast, please register at where a replay will also be available subsequently.

22 November 2016

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