TIDMDLAR
RNS Number : 1277N
De La Rue PLC
28 January 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the (Retained EU
Legislation) Market Abuse Regulation (EU) No.596/2014. Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
28 January 2021
DE LA RUE PLC
TRADING UPDATE
De La Rue plc (LSE: DLAR) ("De La Rue" or the "Company") today
announces a trading update for financial year 2020/21 starting 29
March 2020, and developments in its polymer banknote strategy.
The Company has seen positive trading in this financial year,
with good progress on the implementation of its Turnaround Plan. As
a result, the Board's expectations for adjusted operating profit
for the financial year 2020/21 are in the range of GBP36 million to
GBP37 million, compared with current market expectations of
approximately GBP34 million.( (1)
The Board is confident of these expectations, absent any
significant unforeseen COVID-19 related event. The Company remains
diligent on its COVID-19 safety measures and has year-to-date
effectively mitigated the challenges of the pandemic.
The improved expectations are largely driven by a strong
Currency division performance. De La Rue recognises that the
pandemic is causing some delays in securing new government revenue
solutions contracts with overseas governments by its Authentication
division, due to disruption in procurement processes.
De La Rue also announces that it has decided on a UK location
for the expansion of manufacturing capacity for its SAFEGUARD(R)
polymer substrate. The additional production line will be located
in a recently acquired building adjacent to its existing premises
in Westhoughton, near Bolton, creating operational efficiencies.
The Company expects the new line to be fully operational before the
end of calendar year 2021 and that it will more than double current
polymer production capacity. De La Rue plans to recruit up to an
additional 70 people during the next two and a half years as part
of this investment.
As a result of the continued positive momentum of customers
switching to De La Rue's SAFEGUARD(R) polymer substrate, and to
create more possibilities in relation to future expansion, the
Company now plans to spend approximately GBP20 million on its
polymer strategy, an increase on the approximately GBP15 million
previously indicated. Total aggregate 3-year investment for the
Turnaround Plan remains unchanged at GBP79.8 million.
Clive Vacher, CEO of De La Rue, said, "I am pleased that we are
able to report increased adjusted operating profit expectations for
the year, due to positive trading. We remain focused on delivering
shareholder value through the successful execution of our
Turnaround Plan.
"In addition, I am delighted to announce further investment in
manufacturing and job creation in the North West of the UK, as we
continue to increase our polymer market share globally. The
Currency team has done a remarkable job in bringing De La Rue's
SAFEGUARD(R) polymer substrate to a position of industry
leadership.
"It is a fitting endorsement of the technical and operational
capabilities of our Westhoughton site, that we have made the
decision to concentrate our polymer substrate manufacturing into
this Centre of Excellence."
De La Rue expects to announce its results for the full year
ended 27 March 2021 on 26 May 2021.
De La Rue plc's LEI code is 213800DH741LZWIJXP78.
(1). Market expectations are based on the average of published
notes from Investec and Numis Securities.
Enquiries:
De La Rue plc +44 (0) 7387 122645
Clive Vacher Chief Executive Officer
Rob Harding Chief Financial Officer
Matthew Rose Director of Tax, Treasury and Investor
Relations
Brunswick Group LLP +44 (0)207 404 5959
Stuart Donnelly/ Imran Jina
Cautionary note regarding forward-looking statements
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "plans", "may", "will",
"could", "shall", "risk", "aims", "predicts", "continues",
"assumes", "positioned" or "should" or, in each case, their
negative or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
announcement and include statements regarding the intentions,
beliefs or current expectations of the directors, De La Rue or the
Group concerning, amongst other things, the results of operations,
financial condition, liquidity, prospects, growth and strategies of
De La Rue and the industry in which it operates.
By their nature, forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other factors because
they relate to events and depend on circumstances that will occur
in the future whether or not outside the control of the Company.
Past performance cannot be relied upon as a guide to future
performance and should not be taken as a representation or
assurance that trends or activities underlying past performance
will continue in the future. Accordingly, investors or potential
investors should not place undue reliance on these forward-looking
statements. The Group's actual results of operations, financial
condition, liquidity and the development of the industry in which
it operates may differ materially from the impression created by
the forward-looking statements contained in this announcement. In
addition, even if the results of operations, financial condition
and liquidity of the Group and the development of the industry in
which it operates, are consistent with the forward-looking
statements contained in this announcement, those results or
developments may not be indicative of results or developments in
subsequent periods.
Other than in accordance with its legal or regulatory
obligations, De La Rue does not undertake any obligation to update
these forward-looking statements, which speak only as at the date
of this announcement, and will not publicly release any revisions
that may be made to these forward-looking statements, which may
result from events or circumstances arising after the date of this
announcement.
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END
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