De La Rue plc Preliminary Statement to 26 March 2011



Revenue 463.9 561.1
Operating profit * 40.4 109.2
Profit before tax and exceptional items 33.3 104.1
Profit before tax 72.8 96.6
Headline earnings per share * 24.0p 76.2p
Basic earnings per share 67.6p 71.0p
Dividend per share 42.3p 42.3p

* Group operating profit and headline EPS are reported before net exceptional income of £39.5m in 2010/11 and an exceptional cost of £7.5m in 2009/10


  • Operating profit of £40m, significantly below prior year, reflecting paper production issues and an unrelated reduction in banknote print volumes
  • Following a comprehensive business review, an Improvement Plan has been formulated with a target operating profit in excess of £100m within three years
  • Final dividend maintained at 28.2p, demonstrating the Board’s confidence in the business and in delivering the Improvement Plan
  • Exceptional gain of £55m from the sale of the Group’s investment in Camelot
  • UK Passport successfully launched on schedule in October 2010

Nicholas Brookes, Chairman, commented:

"The 2010/11 financial year has undoubtedly been a difficult one for De La Rue, our employees, customers and shareholders. We have dealt with a number of challenges including paper production issues, lower than expected banknote print volumes, changes in senior management and a takeover approach.

“ De La Rue’s strengthened senior management team and its loyal, experienced and skilled employees will build on the Group’s fundamental strengths to put the business back on track.

“The Improvement Plan has a target to achieve an operating profit in excess of £100m within three years by both restoring revenue growth and delivering significant cost reduction. The Board is confident that this plan can be delivered and its decision to maintain the dividend reflects that confidence, and the strong fundamentals of the business.”

Tim Cobbold, Chief Executive, commented:

“Current trading is in line with the Board’s expectations with an encouraging order book profile and a good pipeline of opportunities.

“Whilst recognising the challenges ahead, I am confident that, given the strong fundamentals of De La Rue’s business, the commitment of its employees and a clear Improvement Plan, we will deliver the value that our shareholders expect.

“I am determined that De La Rue will become a more efficient, customer focused, innovative business which will be well placed to grow sustainably in the future.”

For enquiries, please contact:

Tim Cobbold Chief Executive +44 (0)1256 605000
Colin Child Group Finance Director +44 (0)1256 605000
Clare Lloyd Williams Group Communications Manager +44 (0)1256 605000
Jon Coles/Kate Holgate Brunswick +44 (0) 20 7404 5959

24 May 2011

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