De La Rue plc interim results November 2014



  Half Year
Half Year
Revenue 214.9 234.0 (8% )
Underlying operating profit * 26.6 38.5 (31%)
Underlying profit before tax ** 20.6 32.8 (37%)
Reported profit before tax 18.1 28.4 (36%)
Underlying earnings per share ** 15.9p 25.7p (38%)
Basic earnings per share 13.5p 21.9p (38%)
Dividend per share 8.3p 14.1p (41%)

* Operating profit is before exceptional charges of £2.5m (2013/14: £4.4m).
** Underlying profit before tax and EPS are reported before the exceptional charges noted above and exceptional tax credits of £0.1m (2013/14: £0.7m).

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


  • Appointment of Martin Sutherland as new CEO
  • Bank of England 10 year print contract renewal signed in October 2014
  • Group 12 month order book up £4m since year end at £222m, currency market share maintained
  • Ongoing challenging market conditions adversely impact financial performance
  • Banknote print volumes up 4% to 2.7bn notes, banknote paper volumes down 4% to 4,500 tonnes
  • Operational efficiencies yield additional £3m savings in the first half
  • Further site rationalisation commenced in June 2014
  • Interim dividend reduced to 8.3p, as previously announced

Philip Rogerson, Chairman, commented:

“While market conditions have resulted in lower revenues, we have partially mitigated the impact in the first half through cost savings from operational efficiencies and have commenced a further rationalisation of our manufacturing footprint.

“As previously announced, we expect the challenging trading conditions within the currency market to continue and this, together with lower than expected new business in our Solutions division, has impacted our outlook for 2014/15 and 2015/16.

“The Board continues to believe that, while current conditions are tough, De La Rue remains a strong, profitable and cash generative business in a market with good medium and long term growth prospects.”

Martin Sutherland, Chief Executive, commented:

“I am delighted to have joined De La Rue and I am confident that, notwithstanding the current challenging market conditions, the fundamental strengths of the business and the operational improvements achieved in recent years, position the Group well. Over the coming months I shall be evaluating the strategy of the Group and expect to report on this with the full year results in May 2015.”


De La Rue plc   +44 (0)1256 605000
Martin Sutherland Chief Executive  
Colin Child Group Finance Director  
Brunswick   +44 (0)207 404 5959
Jon Coles    
Oliver Hughes    

A presentation to analysts will take place at 9:00 am on 25 November 2014 at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. There will be a simultaneous audio webcast of the meeting. For the live webcast, please register at where a replay will also be available subsequently.

25 November 2014

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