Half year results slightly ahead of expectations - full year expectations unchanged
Group 12 month order book up 37% year-on-year at £405m, though market conditions remain volatile
Print and Paper volumes better than expected, benefited from large overspill contracts
Progress on Polymer marked by significant three-year contract
Launched first software solution for both Identity and Security Products, and secured first customers
Reorganisation complete with new CFO on board; functional structure in place to support delivery of strategy; net headcount reduction of 6%
Manufacturing footprint review near completion, expect more than £13m of annual savings from 2018/19, <£30m capex investment and £8m restructuring cost over next two years
'Root and branch' review initiated to address CPS poor performance
Interim dividend maintained at 8.3p
Martin Sutherland, Chief Executive Officer, commented:
"De La Rue's half year performance has been better than expected. The Currency business has shown strength and resilience against the ongoing volatile market conditions. Identity and Security Products have also progressed well with the launch of the first digital solutions. However, the overall performance was dampened by the poor results in CPS. Our success in winning large overspill orders in the period has strengthened the Group's order book, which gives us confidence and visibility for our full year performance.
Implementation of the five year plan we set out in May is now well underway. We have restructured the business to support the delivery of the strategy and increased investment in product development and new technologies. Our review of the manufacturing footprint to improve efficiency and reduce costs is near completion and we will provide more details in the coming weeks. Whilst it will, of course, take time to deliver the full potential of the strategy, we are pleased with the progress made at this early stage."