Preliminary Statement Period to 29 March 2014

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		2013/14	2012/13*	Change
Revenue		£513.3m	£483.7m	6%
Underlying operating profit **		£90.5m	£63.2m	43%

Underlying profit before tax ***		£77.3m	£51.3m	51%
Reported profit before tax		£59.8m	£43.7m	37%

Underlying earnings per share ***		60.7p	38.5p	58%
Basic earnings per share		47.3p	37.4p	26%
Dividend per share		42.3p	42.3p
*	Restated to reflect the amendments to IAS 19R Employee Benefits
**	Underlying operating profit is defined as operating profit before exceptional charges of £17.5m (2012/13: £7.6m). The IAS 19R administration charge (2013/14: £1.2m, 2012/13: £1.7m) has also been excluded above as we consider this to be useful to the users of the accounts given the importance of the Group's Improvement Plan operating profit target, which was stated before exceptional items and IAS 19R
***	Underlying profit before tax and EPS are reported before the exceptional charges noted above and exceptional tax credits of £4.2m (2012/13: £6.5m) The Directors are of the opinion that these measures give a better indication of underlying performance

De La Rue plc		+44 (0)1256 605000
Philip Rogerson	Chairman
Colin Child	Chief Operating Officer and Group Finance Director
Rob Hutchison	Group Director of Communications
Brunswick		+44 (0)207 404 5959
Jon Coles
Oliver Hughes

	2013/14	2012/13	Change
Banknote print volume (bn notes)	6.2	6.3	(2%)
Banknote paper output ('000 tonnes)	9.6	8.7	10%

	£m	£m
Revenue	342.7	298.1	15%
Underlying operating profit*	9.6	38.0	63%
*Segmental underlying operating profit is stated before exceptional items

	2013/14 £m	2012/13 £m	Change
Revenue:
Cash Processing Solutions	57.4	61.2	(6%)
Security Products	46.2	45.1	2%
Identity Systems	77.6	84.4	(8%)
Total Solutions	181.2	190.7	(5%)

Underlying operating profit/(loss):*
Cash Processing Solutions	(4.1)	-
Security Products	10.6	8.9	19%
Identity Systems	22.0	16.3	35%
Total Solutions	28.5	25.2	13%
*Segmental underlying operating profit is stated before exceptional items

GROUP INCOME STATEMENT For the period ended 29 March 2014
	Notes	2014 £m	2013* £m
Revenue		513.3	483.7
Operating expenses - ordinary		(424.0)	(422.2)
Operating expenses - exceptional	3	(17.5)	(7.6)
Total operating expenses		(441.5)	(429.8)
Operating profit		71.8	53.9
Comprising:
Underlying operating profit before IAS 19R		90.5	63.2
Defined benefit pension administration costs (IAS 19R)**		(1.2)	(1.7)
Exceptional items	3	(17.5)	(7.6)

Profit before interest and taxation		71.8	53.9
Interest income		0.2	0.2
Interest expense		(4.9)	(3.8)
Retirement benefit obligation net finance cost		(7.3)	(6.6)
Net finance expense		(12.0)	(10.2)
Profit before taxation		59.8	43.7
Comprising:
Underlying profit before tax		77.3	51.3
Exceptional items		(17.5)	(7.6)

Taxation	4	(11.9)	(5.5)
Profit for the year		47.9	38.2
Comprising:
Underlying profit for the year		61.2	39.3
Loss for the year on exceptional items		(13.3)	(1.1)

Profit attributable to equity shareholders of the Company		47.3	37.2
Profit attributable to non-controlling interests		0.6	1.0
		47.9	38.2

KEY FINANCIALS

Pension deficit and funding

GROUP INCOME STATEMENT

For the period ended 29 March 2014

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the period ended 29 March 2014

GROUP BALANCE SHEET

At 29 March 2014

GROUP STATEMENT OF CHANGES IN EQUITY

For the period ended 29 March 2014

GROUP CASH FLOW STATEMENT

For the period ended 29 March 2014

1 Basis of preparation and accounting policies

2 Segmental analysis

3 Exceptional items

4 Taxation

5 Earnings per share

6 Equity dividends

7 Analysis of net debt

Provision has been made in prior years for the costs associated with the paper production issues identified at this stage including the write off of trade receivables and other costs relating to the investigation, production and rectification of these matters.

Companies

UK 100

Latest directors dealings

GROUP STATEMENT OF COMPREHENSIVE INCOME For the period ended 29 March 2014
	2014 £m	2013* £m
Profit for the year	47.9	38.2
Other comprehensive income
Items that are not reclassified subsequently to profit or loss:
Remeasurement losses on retirement benefit obligations	(2.1)	(29.5)
Tax related to remeasurement of net defined benefit liability	(4.7)	5.6
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations	(2.5)	1.0
Change in fair value of cash flow hedges	(4.2)	(0.9)
Change in fair value of cash flow hedges transferred to profit or loss	0.6	2.1
Income tax relating to components of other comprehensive income	0.2	(0.1)
Other comprehensive income for the year, net of tax	(12.7)	(21.8)
Comprehensive income for the year, net of tax	35.2	16.4
Comprehensive income for the year attributable to:
Equity shareholders of the Company	34.6	15.4
Non-controlling interests	0.6	1.0
	35.2	16.4

GROUP BALANCE SHEET At 29 March 2014
	2014 £m	2013 £m
Assets
Non-current assets
Property, plant and equipment	184.3	179.7
Intangible assets	18.1	26.0
Investments in associates and joint ventures	0.1	0.1
Deferred tax assets	37.5	45.5
Derivative financial assets	0.4	-
	240.4	251.3
Current assets
Inventories	77.1	73.4
Trade and other receivables	105.0	89.2
Current tax assets	0.2	0.3
Derivative financial assets	2.3	4.9
Cash and cash equivalents	57.9	24.8
	242.5	192.6
Total assets	482.9	443.9
Liabilities
Current liabilities
Borrowings	(147.8)	(101.5)
Trade and other payables	(170.9)	(167.4)
Current tax liabilities	(27.6)	(29.1)
Derivative financial liabilities	(5.8)	(3.9)
Provisions for liabilities and charges	(21.1)	(26.0)
	(373.2)	(327.9)
Non-current liabilities
Retirement benefit obligations	(168.0)	(169.1)
Deferred tax liabilities	(1.3)	(2.8)
Derivative financial liabilities	(1.5)	(1.2)
Provisions for liabilities and charges	(2.1)	(4.5)
Other non-current liabilities	(7.2)	(5.0)
	(180.1)	(182.6)
Total liabilities	(553.3)	(510.5)
Net liabilities	(70.4)	(66.6)
Equity
Share capital	46.3	45.8
Share premium account	35.3	31.9
Capital redemption reserve	5.9	5.9
Hedge reserve	(3.2)	(0.3)
Cumulative translation adjustment	(3.4)	(0.4)
Other reserves	(83.8)	(83.8)
Retained earnings	(72.6)	(70.4)
Total equity attributable to shareholders of the Company	(75.5)	(71.3)
Non-controlling interests	5.1	4.7
Total equity	(70.4)	(66.6)

GROUP STATEMENT OF CHANGES IN EQUITY For the period ended 29 March 2014
	Attributable to equity shareholders							Non-controlling interests	Total equity
	Share capital £m	Share premium account £m	Capital redemption reserve £m	Hedge reserve £m	Cumulative translation adjustment £m	Other reserve £m	Retained earnings £m	£m	£m
Balance at 31 March 2012	45.7	30.7	5.9	(1.2)	(1.4)	(83.8)	(45.4)	3.9	(45.6)
Profit for the year	-	-	-	-	-	-	37.2	1.0	38.2
Other comprehensive income for the year, net of tax	-	-	-	0.9	1.0	-	(23.7)	-	(21.8)
Total comprehensive income for the year	-	-	-	0.9	1.0	-	13.5	1.0	16.4
Transactions with owners of the Company recognised directly in equity:
Share capital issued	0.1	1.2	-	-	-	-	-	-	1.3
Employee share scheme:
- value of services provided	-	-	-	-	-	-	3.0	-	3.0
Income tax on income and expenses recognised directly in equity	-	-	-	-	-	-	0.6	-	0.6
Dividends paid	-	-	-	-	-	-	(42.1)	(0.2)	(42.3)
Balance at 30 March 2013	45.8	31.9	5.9	(0.3)	(0.4)	(83.8)	(70.4)	4.7	(66.6)
Profit for the year	-	-	-	-	-	-	47.3	0.6	47.9
Other comprehensive income for the year, net of tax	-	-	-	(2.9)	(3.0)	-	(6.8)	-	(12.7)
Total comprehensive income for the year	-	-	-	(2.9)	(3.0)	-	40.5	0.6	35.2
Transactions with owners of the Company recognised directly in equity:
Share capital issued	0.5	3.4	-	-	-	-	-	-	3.9
Employee share scheme:
- value of services provided	-	-	-	-	-	-	(0.2)	-	(0.2)
Income tax on income and expenses recognised directly in equity	-	-	-	-	-	-	(0.3)	-	(0.3)
Dividends paid	-	-	-	-	-	-	(42.2)	(0.2)	(42.4)
Balance at 29 March 2014	46.3	35.3	5.9	(3.2)	(3.4)	(83.8)	(72.6)	5.1	(70.4)

GROUP CASH FLOW STATEMENT For the period ended 29 March 2014
	Notes	2014 £m	2013* £m
Cash flows from operating activities
Profit before tax		59.8	43.7
Adjustments for:
Finance income and expense		12.0	10.2
Depreciation and amortisation		28.3	26.3
Increase in inventory		(6.1)	(4.1)
Increase in trade and other receivables		(11.5)	(6.9)
Decrease in trade and other payables		(0.9)	(3.8)
Decrease in reorganisation provisions		(6.0)	(10.4)
Special pension fund contributions		(11.5)	(16.2)
(Profit)/loss on disposal of property, plant, equipment and software intangibles		(4.0)	0.3
Asset impairment		14.2	-
Other non-cash movements		(0.4)	1.3
Cash generated from operating activities		73.9	40.4
Tax paid		(11.2)	(7.5)
Net cash flows from operating activities		62.7	32.9
Cash flows from investing activities
Purchases of property, plant, equipment and software intangibles		(34.9)	(37.1)
Development assets capitalised		(4.7)	(3.7)
Proceeds from sale of property, plant and equipment		8.1	0.2
Net cash flows from investing activities		(31.5)	(40.6)
Net cash flows before financing activities		31.2	(7.7)
Cash flows from financing activities
Proceeds from issue of share capital		3.8	1.3
Proceeds from borrowings		47.2	50.9
Interest received		0.2	0.2
Interest paid		(4.6)	(3.5)
Dividends paid to shareholders		(42.2)	(42.1)
Dividends paid to non-controlling interests		(0.2)	(0.2)
Net cash flows from financing activities		4.2	6.6
Net increase/(decrease) in cash and cash equivalents in the year		35.4	(1.1)
Cash and cash equivalents at the beginning of the year		21.7	22.5
Exchange rate effects		(0.9)	0.3
Cash and cash equivalents at the end of the year		56.2	21.7
Cash and cash equivalents consist of:
Cash at bank and in hand	7	55.7	24.8
Short term bank deposits	7	2.2	-
Bank overdrafts	7	(1.7)	(3.1)
	7	56.2	21.7

		Solutions
2014	Currency	Cash Processing Solutions	Security Products	Identity Systems	Unallocated	Total
	£m	£m	£m	£m	£m	£m
Total revenue	342.7	57.4	46.2	77.6	-	523.9
Less: inter-segment revenue	(1.9)	(4.2)	(4.5)	-	-	(10.6)
Revenue	340.8	53.2	41.7	77.6	-	513.3
Underlying operating profit	62.0	(4.1)	10.6	22.0	-	90.5
Defined benefit pension administration cost					(1.2)	(1.2)
Exceptional items - operating (note 3)	0.5	(16.9)	1.3	-	(2.4)	(17.5)
Operating profit/(loss)	62.5	(21.0)	11.9	22.0	(3.6)	71.8
Net interest expense					(4.7)	(4.7)
Retirement benefit obligations net finance expense					(7.3)	(7.3)
Profit before taxation						59.8
Segment assets	247.7	35.6	26.4	39.8	133.4	482.9
Segment liabilities	(133.0)	(11.4)	(7.7)	(21.9)	(379.3)	(553.3)
Capital expenditure on property, plant and equipment	35.2	0.6	1.4	1.7	-	38.9
Capital expenditure on intangible assets	1.9	2.5	2.2	0.1	-	6.7
Depreciation of property, plant and equipment	17.1	1.3	2.0	3.4	-	23.8
Impairment of property, plant and equipment	-	3.6	-	-	-	3.6
Amortisation of intangible assets	1.3	2.7	-	0.5	-	4.5
Impairment of intangible assets	-	10.6	-	-	-	10.6

		Solutions
2013*	Currency	Cash Processing Solutions	Security Products	Identity Systems	Unallocated	Total
	£m	£m	£m	£m	£m	£m
Total revenue	298.1	61.2	45.1	84.4	-	488.8
Less: inter-segment revenue	(1.9)	-	(3.2)	-	-	(5.1)
Revenue	296.2	61.2	41.9	84.4	-	483.7
Underlying operating profit	38.0	-	8.9	16.3	-	63.2
Defined benefit pension administration cost					(1.7)	(1.7)
Exceptional items - operating (note 3)	(1.8)	-	(2.1)	-	(3.7)	(7.6)
Operating profit/(loss)	36.2	-	6.8	16.3	(5.4)	53.9
Net interest expense					(3.6)	(3.6)
Retirement benefit obligations net finance expense					(6.6)	(6.6)
Profit before taxation						43.7
Segment assets	220.8	49.3	21.8	45.5	106.5	443.9
Segment liabilities	(112.2)	(21.9)	(8.9)	(23.8)	(343.7)	(510.5)
Capital expenditure on property, plant and equipment	33.3	1.7	6.8	0.4	-	42.2
Capital expenditure on intangible assets	3.1	1.0	-	0.1	-	4.2
Depreciation of property, plant and equipment	17.6	1.8	0.9	3.1	-	23.4
Amortisation of intangible assets	1.3	1.0	-	0.6	-	2.9

	2014			2013*
	Before exceptional items	Exceptional items	Total	Before exceptional items	Exceptional items	Total
	£m	£m	£m	£m	£m	£m
Profit before tax	77.3	(17.5)	59.8	51.3	(7.6)	43.7
Tax calculated at UK tax rate of 23 per cent (2013: 24 per cent)	17.8	(4.0)	13.8	12.3	(1.8)	10.5
Effects of overseas taxation	(1.8)	-	(1.8)	(0.7)	-	(0.7)
Expenses/(credits) not allowable for tax purposes	0.6	1.3	1.9	1.3	(0.3)	1.0
Increase in unutilised tax losses	0.5	1.7	2.2	0.3	-	0.3
Adjustments in respect of prior years	(0.1)	(3.3)	(3.4)	(1.1)	(4.4)	(5.5)
Change in UK tax rate	(0.9)	0.1	(0.8)	(0.1)	-	(0.1)
Tax expense/(credit)	16.1	(4.2)	11.9	12.0	(6.5)	5.5
*Restated to reflect the amendments to IAS 19R Employee benefits - see note 1 The underlying effective tax rate excluding exceptional items was 20.8 per cent (2012/13: 23.4 per cent).

5 Earnings per share
	2014 pence per share	2013* pence per share
Total operations
Basic earnings per share	47.3	37.4
Diluted earnings per share	47.0	36.9
Underlying
Basic earnings per share	60.7	38.5
Diluted earnings per share	60.2	38.0
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held in the employee share trust which are treated as cancelled. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted for the impact of all dilutive potential ordinary shares.
The Directors are of the opinion that the publication of the underlying earnings per share, before exceptional items, is useful to readers of the accounts as it gives an indication of underlying business performance. Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.

Earnings	2014 £m	2013* £m
Earnings for basic and diluted earnings per share	47.3	37.2
Exceptional items	17.5	7.6
Less: Tax on exceptional items	(4.2)	(6.5)
Earnings for underlying earnings per share	60.6	38.3

Weighted average number of ordinary shares	2014 Number m	2013 Number m
For basic earnings per share	99.9	99.6
Dilutive effect of share options	0.7	1.1
For diluted earnings per share	100.6	100.7

11 Foreign exchange
Principal exchange rates used in translating the Group's results:
	2013/14		2012/13
	Average	Year End	Average	Year End
US dollar	1.59	1.66	1.58	1.52
Euro	1.19	1.21	1.22	1.18

12 De La Rue financial calendar : 2014/15
Ex-dividend date for 2013/14 final dividend	2 July 2014
Record date for final dividend	4 July 2014
Annual General Meeting	24 July 2014
Payment of 2013/14 final dividend	1 August 2014