Last checked at 26 Mar 2010 07:00
De La Rue Pre-Close Statement for Year Ending 27 March 2010
Prior to De La Rue plc entering its close period for the year ending 27 March 2010, the Board issues the following trading update. The Group's full year results will be announced on 25 May 2010.
Trading and Financial Performance
Trading for the Group during the final quarter of the year to 27 March 2010 has been in line with our expectations.
In Currency, banknote and paper outputs in the final quarter have continued to be strong with full year volumes expected to be up on last year, as previously indicated. Cash Processing Solutions (CPS) has seen little improvement in its markets but is making good progress on the rationalisation of its product and manufacturing base. The performance of Identity Systems (IDS) in the second half has been mixed, reflecting the timing of completion of its long term contracts. Security Products has continued to perform well.
Cash generation remains strong and the Group expects to end the year with modest net debt in line with our previous expectations, despite the investment required for implementation of the UK Passport contract.
Outlook
Looking to 2010/11 the Group expects changes in actuarial assumptions affecting its defined benefit pension scheme to result in an increased annual charge and estimates the profit impact to be approximately £3m.
The Board believes that banknote volumes should remain at similar levels to this year, but with a greater than normal weighting towards the second half. As already indicated, the unusually strong margin mix in Currency will not be repeated, but it is expected that this will be offset by productivity gains, cost reduction, especially in CPS and improved trading in other parts of the business, notably IDS.
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26 March 2010
For further information, please contact:
| James Hussey | Chief Executive | +44 (0)1256 605222 |
| Simon Webb | Group Finance Director | +44 (0)1256 605222 |
| Clare Lloyd Williams | Group Communications Manager | +44 (0)1256 605222 |
| Richard Mountain | Financial Dynamics | +44 (0)207 269 7291 |
| Notes to Editors | |
| 1. | De La Rue will announce its Preliminary Results on 25 May 2010 |
| 2. | De La Rue is the world's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as passports, authentication labels and fiscal stamps. The Company is a leading provider of cash sorting equipment and software solutions to Central Banks, helping them to reduce the cost of handling cash. De La Rue also pioneers new technologies in government identity solutions for national identification, driver's licence and passport issuing schemes. De La Rue employs approximately 4,000 people worldwide and is a member of the FTSE 250.
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| For further information visit De La Rue's website at www.delarue.com |