De La Rue banknote printer bags Bank of England for new banknotes

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Ticket printer De La Rue announced today that it had halved its net debt in the year through March 27 with Covid ‘turnaround’ measures, ahead of the new $ 50 bill. £ from the band slated for release next month.

Already in the process of creating a new banknote that will hit people’s pockets in June for the Bank of England (BoE), the group has won another BoE contract for the polymer substrate used in plastic banknotes from July.

“We have made encouraging progress in our polymer growth plans, securing a new site to double its capacity in fiscal year 2021/22,” said CEO Clive Vacher.

Shares stabilized this afternoon, falling only 1.29% to 189.4 pence per share, after falling 4.08% this morning.

De La Rue has had a turbulent year, with adjusted income falling 10.2% from £ 432million to £ 388.1million in 2021.

Adjusted operating profit rose 60.8% to £ 38.1million, the group said in a statement this morning. However, IFRS operating profit fell 66.1% to a profit of £ 14.5million, due to the closure of its Gateshead printing plant last year.

Last year, the group confirmed that it was initiating a three-year recovery plan to improve its financial performance.

Net debt was halved from £ 102.8million in the year ending 2020 to £ 52.3million, which was boosted by the capital increase of the group’s £ 100million in July last year.

The turnaround plan has since delivered £ 6million in annual savings for 2020 and £ 23million in savings for this fiscal year. De La Rue expects an additional £ 7million in in-year savings to be made in the next financial year.

Meanwhile, adjusted earnings per share rose 32.4% to 14.7 percent.

“Our two current divisions are performing well and the group has recorded good growth in adjusted operating profits as we complete the first full year of our turnaround plan,” Vacher added.




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