Partner Article

De La Rue profits rise on the back of £35 million improvement plan

Currency and security printing specialists De La Rue have reported a rise in pre-tax profits thanks to the impacts of a major £35 million ‘improvement plan’ across the business.

The Team Valley-based manufacturer saw profits rise to £78 million in its 2013/14 year - up from £53.9 million in the year before, following the move of some manufacturing capacity from Dunstable to its Gateshead facility.

The gains were made despite a slight drop in the volume of banknotes De La Rue were printing, and the affect of around £17.5 million in exceptional charges - relating to improvement plan costs, bid preparations for international work and historic tax liabilities.

Lack of growth across the firm’s Cash Processing Solutions business was said to be dissappointing as revenues fell 6%, although the Security Products division delivered 2% revenue growth to £46.2 million.

Looking to the future De La Rue said it would focus on growing demand for ePassports and maximise opportunities across overseas markets for its holographic stripes and patches products.

Chairman Philip Rogerson said: “I am pleased to report a strong year of trading with underlying operating profit up 43 per cent at £90m despite a more challenging Currency market.

“These results reflect the significant progress that De La Rue has made through implementing the three year Improvement Plan which has grown profits from £40 million in 2010/11 to £90million in 2013/14.

“De La Rue is in fundamentally better shape today and with a culture of continuous improvement embedded in our business there will be further efficiencies ahead.

“We entered the new financial year with a good order book albeit reflecting the recent more difficult pricing environment in the Currency market. The Board’s expectations for 2014/15 remain unchanged.”

This was posted in Bdaily's Members' News section by Tom Keighley .