De la Rue reports surge in full-year profit

28th May 2014 07:17

- Surge in full-year operating profit - Improvement Plan results in savings of 20m pounds- Expectations for this and next year unchangedBanknote printer De La Rue said it entered the new financial year with a good order book despite a more difficult pricing environment in the currency markets, and expectations for 2014/15 remain unchanged. Full-year underlying operating profit jumped 43% to £90m, as the Improvement Plan, increased paper and component volumes and a strong performance in Identity Systems outweighed challenging currency markets. The Improvement Plan gave savings of £20m during the year, bringing the annual savings under the Plan to £40m. Revenue for the period increased 6% to £513.3m while basic earnings per share increased 26% to 47.3p. Underlying operating profit margin improved to 17.4% compared to 12.7%.Foreign exchange movements reduced revenue by £3m but improved operating profit by £2m. Chairman Philip Rogerson commented: "These results reflect the significant progress that De La Rue has made through implementing the three year Improvement Plan which has grown profits from £40m in 2010/11 to £90m 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."The board is recommending a final dividend of 28.2p per share, unchanged from the year before.CJ