Appointment of Martin Sutherland as new CEO
Bank of England 10 year print contract renewal signed in October 2014
Group 12 month order book up £4m since year end at £222m, currency market share maintained
Ongoing challenging market conditions adversely impact financial performance
Banknote print volumes up 4% to 2.7bn notes, banknote paper volumes down 4% to 4,500 tonnes
Operational efficiencies yield additional £3m savings in the first half
Further site rationalisation commenced in June 2014
Interim dividend reduced to 8.3p, as previously announced
Philip Rogerson, Chairman, commented:
"While market conditions have resulted in lower revenues, we have partially mitigated the impact in the first half through cost savings from operational efficiencies and have commenced a further rationalisation of our manufacturing footprint.
"As previously announced, we expect the challenging trading conditions within the currency market to continue and this, together with lower than expected new business in our Solutions division, has impacted our outlook for 2014/15 and 2015/16.
"The Board continues to believe that, while current conditions are tough, De La Rue remains a strong, profitable and cash generative business in a market with good medium and long term growth prospects."
Martin Sutherland, Chief Executive, commented:
"I am delighted to have joined De La Rue and I am confident that, notwithstanding the current challenging market conditions, the fundamental strengths of the business and the operational improvements achieved in recent years, position the Group well. Over the coming months I shall be evaluating the strategy of the Group and expect to report on this with the full year results in May 2015."