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De La Rue expects full-year operating profits to top market expectations, revenues in line

Last updated: 08:35 11 Apr 2017 BST, First published: 07:19 11 Apr 2017 BST

Banknotes
Separately, De La Rue also said that Rupert Middleton, its chief operating officer is to step down

Banknote printer De La Rue PLC (LON:DLAR) expects its full-year underlying operating profit to be “above the top end of market consensus”, with group revenue in line with market expectations, and has also announced the departure of its chief operating officer.

In a post-close trading update for the year ended 25 March 2017, the small cap group said the outperformance has “been driven by good growth in Identity Systems and Product Authentication & Traceability product lines.”

It added: “The Currency business has performed in line with market expectations.”  

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De La Rue continued: “While the sustained weakness of Sterling gives us a competitive advantage in the export market, this benefit is substantially offset by increased investment in R&D, product management and sales capability, as well as the rising cost of raw materials such as cotton. “

The group said its expectations for the 2017/18 financial year remain unchanged.

The firm said its net debt as at 25 March 2017 was around £14mln higher than at the end of the prior year at approximately £120mln following the completion of the US$25mln acquisition of DuPont Authentication in January.

In early trading, De La Rue shares were almost 5% higher, up 32.5p at 652.0p.

Operating change …

Separately, De La Rue also said that Rupert Middleton, its chief operating officer is to step down from the group’s board after the AGM on July 20 2017.

The group said the position will be replaced by the newly created role of chief operations director, reporting to the CEO, but the appointment will not be a board position.

It added that a search has commenced to identify suitable internal and external candidates.

De La Rue will issue its 2016/17 full year results on 23 May.

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