Update on full year outturn and UK passport tender appeal decision

Further to the announcement on 20 March 2018, De La Rue plc (“De La Rue” or the “Group”) today provides an unaudited post-close trading update for the year ended 31 March 2018.

Full year revenue for the Group is expected to increase by c6% year on year, with growth across all product lines. Full year underlying operating profit is anticipated to be in the low to mid £60s million range, reflecting the write off of the c£4m bid costs related to the UK passport tender and delays in the shipment of certain contracts in the last week of the period.

At this early stage of the new financial year, the Group is cautious about the outturn for the full year, however starts off with a satisfactory order book underpinned by 16% growth in total order intake driven by strong growth in Identity Solutions and Product Authentication.

The paper transaction announced on 1 February was completed on 30 March 2018. This has strengthened the Group’s balance sheet, with net debt significantly reduced to c£55m as at 31 March 2018.

Further to the announcement on 22 March 2018 and having considered all options, the Group today announces it will not appeal against HMPO’s decision on the UK passport tender. De La Rue will continue to fulfil its existing contract and assist with transition to the new supplier and is therefore expecting no impact on the Group’s performance in the next 18 months.

The Board will give further details on the ongoing business and prospects for the coming year at the full year results.

The Group will issue its 2017/18 full year results at 7a.m. BST Wednesday 30 May 2018. Analyst presentation and conference call details will be provided two weeks prior to the announcement.

This announcement has been determined to contain inside information.

De La Rue plc’s LEI code is 213800DH741LZWIJXP78

 

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Enquiries:

De La Rue plc +44 (0)1256 605000

Martin Sutherland          Chief Executive Officer

Lili Huang                     Head of Investor Relations

 

 

Brunswick +44 (0)207 404 5959

Katharine Spence

Stuart Donnelly

 



 

Cautionary note regarding forward-looking statements

 

These results include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout these results and the information incorporated by reference into these results and include statements regarding the intentions, beliefs or current expectations of the directors, De La Rue or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of De La Rue and the industry in which it operates.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond De La Rue's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in these results and/or the information incorporated by reference into these results. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates, are consistent with the forward-looking statements contained in these results and/or the information incorporated by reference into these results, those results or developments may not be indicative of results or developments in subsequent periods.

Other than in accordance with its legal or regulatory obligations, De La Rue does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

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