De La Rue plc Preliminary Statement to 30 March 2013



  2012/13 2011/12 Change
Revenue £483.7m £528.3m (8%)
Operating profit * £63.2m £63.1m  
Operating profit margin * 13.1% 11.9%  
Underlying profit before tax * £59.1m £57.7m 2%
Reported profit before tax £51.5m £32.9m 57%
Headline earnings per share * 44.4p 43.5p 2%
Dividend per share 42.3p 42.3p  

* Group operating profit and underlying profit before tax are reported before an exceptional charge of £7.6m in 2012/13 (2011/12: £24.8m). Headline EPS is reported before the exceptional charge and exceptional tax credits of £6.5m (2011/12: £13.2m). The Directors are of the opinion that these give a better indication of underlying performance


  • Improved operating margin secured largely through Improvement Plan cost savings
  • Operating profit maintained on lower volumes
  • Banknote print volumes similar at 6.3bn, paper volumes down 21%, as expected, to 8,700 tonnes reflecting challenging market conditions, historically low overspill and delayed orders as previously announced
  • Modest net debt at £77m and good operating cash inflow of £40m
  • Year end 12 month order book down at £207m (2011/12: £248m), but strong pipeline of order opportunities, up more than 10 per cent on prior year
  • EPS 2% higher and final dividend unchanged at 28.2p
  • Improvement Plan cost saving target for 2013/14 increased from £30m to £40m

Tim Cobbold, CEO, commented:

“ De La Rue delivered an operating profit of £63m, in line with the prior year, despite a much more challenging banknote paper market, which has also had some impact in the printed banknote market.

Overall order intake reflected the difficult market conditions and an historically low level of overspill volume available to the commercial producers. It was also impacted by the previously announced delay to a number of important orders, some of which have since been received.

We continue to make good progress in cost reduction as part of the Improvement Plan and are now targeting annual savings of £40m, £10m higher than the original Improvement Plan target.

We enter the new financial year with increased cost savings identified and a strong pipeline of order opportunities, more than 10 per cent higher than at the same time last year. Whilst these opportunities must be secured for delivery in the year, the Board remains confident of achieving the 2013/14 Improvement Plan target of an operating profit in excess of £100m.”


De La Rue plc   +44 (0)1256 605000
Tim Cobbold Chief Executive  
Colin Child Group Finance Director  
Rob Hutchison Group Director of Communications  
Brunswick   +44 (0)207 404 5959
Jon Coles    
Oliver Hughes    

A presentation to analysts will take place at 09:00 on 29 May 2013 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

An interview with Tim Cobbold, Chief Executive, is available at or

29 May 2013

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