De La Rue reiterates profit guidance despite tough conditions

31st Jan 2014 07:32

- Operating profit guidance reiterated at 90m pounds- Pricing still challenging in Currency Division- Solutions Division trading 'satisfactorily'Banknote printer De La Rue said it still expects strong profit growth for the full year despite tough conditions in both of its division.Trading during the third quarter was "as anticipated", the company said, as it reiterated its operating profit guidance of £90m for the 12 months ending March 31st 2014.This would represent 40% profit growth from last year and a 125% increase since its cost-reduction 'Improvement Plan' began in 2010/11.The Currency Division, which accounts for around three-fifths of group revenue, is expected to report sales of 6.6bn banknotes and 10,000 tonnes of banknote paper for the full year, up from 6.3bn and 8,700 tonnes the previous year.However, De La Rue said that the pricing environment in the printed banknote and paper markets continues to be challenging, "reflecting the previously reported overcapacity in the banknote paper market".Meanwhile, the performance of the Solutions Division, which works in holographic, cash processing and identity systems markets, was satisfactory, the company said.Trading remains "disappointing" in Cash Processing Solutions but the firm said good progress has been made on its cost reduction programme.BC