Pre Close Statement for Six M
PRE CLOSE STATEMENT FOR SIX MONTHS TO 27 SEPTEMBER 2008
Prior to entering its close period for the six months to 27 September 2008, the Board of De La Rue issues the following trading update. The Company's interim results are due to be announced on 26 November 2008.
The first half year includes trading from the continuing Security Paper and Print division (SPPD) and Cash Processing Solutions (CPS), together with the discontinued Cash Systems activities for the 5 months up to completion of the disposal on 1 September 2008.
In the continuing activities, performance for the second quarter and the first half year has been in line with the Board's expectations.
In the Currency business, a strong opening order book, together with the continued strength of banknote demand, has driven first half volumes and performance. We expect this to result in good year on year volume and revenue growth, despite lower overspill volumes.
In Security Products, sales of authentication labels and other security products remain robust and in line with our expectations.
In the Cash Processing Solutions (large sorters) business, investment has been increased in R&D and marketing to support the launch of key new products and expansion into new territories.
Operating cashflow remains strong although, as anticipated advance payments have reduced in the first half year and are expected to move towards more normal levels by the year end. We remain confident of the Group's continued cash generation going forward.
The sale of Cash Systems (excluding CPS) to a company incorporated for The Carlyle Group was completed on 1 September 2008 for a cash consideration of £360 million on a cash and debt free basis subject to adjustment for a normalised level of working capital. These activities will be reported as discontinued activities for the current year.
As previously announced, De La Rue proposes to return approximately £460 million of capital to shareholders, equivalent to 305 pence per share. The capital will be returned through a B share scheme accompanied by a share consolidation. A Circular will be sent to shareholders during October containing details of the capital return, including the basis of the share consolidation, which will be determined at that time.
Overall, we enter the second half year with a strong order book and the Board remains confident in the trading outlook from continuing activities for the current year.
-ends-
16 September 2008
For further information, please contact:
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Leo Quinn |
Chief Executive |
+44 (0)1256 605303 |
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Stephen King |
Finance Director |
+44 (0)1256 605303 |
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Gary Williams |
Head of Corporate Affairs |
+44 (0)1256 605303 |
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Andrew Lorenz |
Financial Dynamics |
+44 (0)207 269 7121 |
Notes to Editors
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1 |
De La Rue is the world's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as passports, authentication labels and fiscal stamps. The company is a leading provider of cash sorting equipment and software solutions to Central Banks, helping them to reduce the cost of handling cash. De La Rue also pioneers new technologies in government identity solutions for national identification, driver's licence and passport issuing schemes. De La Rue employs over 4,000 people worldwide and is a member of the FTSE 250. For further information visit De La Rue's website at www.delarue.com. |
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This information is provided by RNS
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