Operating profit up 18% to £39.1m
Improvement Plan benefits of £10m realised in the period
Banknote print volumes down 10% to 2.6bn notes reflecting the timing of shipments between the first and second half of the current year
Banknote paper volumes up 4% to 4,700 tonnes
Headline EPS up 24% at 25.7p
Group 12 month order book up £25m at £232m, of which Currency orders up 14% at £180m
Continuous improvement programme on track to deliver full year target cost savings
Tim Cobbold, CEO, commented:
"Overall De La Rue performed well in the first half with operating profits up 18% at £39m, on slightly lower revenues. This improvement, despite more challenging trading conditions, reflects the good progress made on the ongoing cost reduction programme which is on track to meet the targets for the year.
As previously announced the current overcapacity in the banknote paper market has led to a more difficult pricing environment in the printed banknote market. Accordingly the Board still expects operating profit for the current financial year to be c£90m. This is an increase of over 40% on the previous year and a 125% increase on the performance in 2010/11 when the Improvement Plan began.
Despite the challenging market De La Rue is in good shape and benefiting from the many initiatives within the Improvement Plan. The Group's 12 month order book at the end of the first half was £232m, up £25m since the year end."