Gateshead-based De La Rue anticipates £20m operating profit drop

Trading update confirms trading has remained in line with revised expectations for De La Rue

De La Rue products
De La Rue products

Bank note printer, De La Rue, which has a factory in Gateshead, expects to see its 2014/15 operating profit drop £20m compared to the previous year.

In a trading update covering the period between September 27 and the current date, the company said trading had been in line with revised expectations, with all the forecast currency orders for production and shipment in the current financial year now secured.

In 2013/14, the business reported an underlying profit of £89.3m, but this year the figure is expected to be closer to £69m.

The currency division, subject to customer shipment instructions, is set to report volumes of around 6.4bn banknotes and roughly 9,750 tonnes of banknote paper. The pricing environment in the banknote print and paper markets is expected to remain difficult throughout 2015/16, with recent tenders reflecting the ongoing competitive pressures.

Overall, the solutions division continued to trade in line with the board’s expectations. The performance of Cash Processing Solutions remained on track to meet its target of achieving break even in 2014/15.

In the update, De La Rue also announced that Colin Child has informed the board he intends to stand down as Group Finance Director at the Company’s AGM on July 23, 2015.

Head hunters will be appointed to look for a new finance director and assist the board’s Nomination Committee to identify suitable internal and external candidates.

Philip Rogerson, chairman of De La Rue, said: “On behalf of the board and all his colleagues at De La Rue I would like to acknowledge and thank Colin for the very significant contribution he has made to the company.

“During his five years with De La Rue Colin played an important role in the achievement of improvements to the business and took on additional responsibilities during periods of management change.

“He leaves with our very best wishes.”

Group finance director Colin Child said: “I am enormously pleased and proud to have played a part over the past five years with the team at De La Rue in materially improving the business.

“As the leader in its industry, and despite the current market conditions, the group is in good shape for the future.”

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