De La Rue plc (LSE: DLAR) ("De La Rue", the “Group” or the "Company") is providing an update on trading for the periods ending 29 March 2025 (“FY25”) and 28 March 2026 (“FY26”).
As noted in our interim results, FY25 has been a year of good progress, with activity levels continuing to build in our Currency business and at the same time our Authentication business achieving a solid performance. Overall we are on track with FY25, reflecting the strong Currency order book growth through the second half, and the necessary working capital investment to support this volume growth. This outcome is dependent on efficient production and timely delivery of completed product in the final weeks of this financial year.
The Currency business continues to see strong order intake, with the order book standing at £347m at the end of January 2025.
The additional orders won so far in FY25 within Currency, and improvements to the operational plan for FY26 which we have worked through in recent months give us growing confidence in the outlook for our Currency business. We now expect growth for the Currency division in FY26 to be significantly higher than that guided at the time of announcement of our half year results.
The work on separation of the Authentication division is well advanced. We remain on track to complete the sale in the first half of calendar 2025, as envisaged at the time of announcement.
Our net debt balance has increased as expected since the half year, as we build up working capital to work through our order book and accrue cash costs of separating the Authentication division. The completion of the sale of Authentication will repay the revolving credit facility in full ahead of its maturity on 1 July 2025.
Further to the Formal Sale Process announcement of 4 February 2025, the Company continues to be in discussions that may or may not result in possible cash offers for the Company and with various potential counterparties in relation to the Currency division. A further announcement will be made as and when appropriate.
Clive Vacher, Chief Executive Officer commented:
“The Currency division is now benefitting from the success we have had in transforming the business over the last five years with a substantial upward increase in activity predicted by the growing order book. With sales for FY26 now largely contracted and the proposed sale of Authentication proceeding as planned, we will be able to focus on delivering finished banknotes, polymer and security features to our Currency customers efficiently and effectively.
“We expect FY26, our next financial year, to bring a significant escalation in the performance of our Currency business.”
