De La Rue profits up in challenging market

Bank note printer De La Rue reported both revenues and profits were up in the first half but noted a more challenging paper market as competitors upped production.

The firm said banknote print volumes were up 4% to 2.9bn notes in the six months to September 29th, but banknote paper volumes declined 15% to 4,500 tonnes.

Revenue was up 3% to £245.4m in the first half, while profit before tax was up 3% to £27.9m compared to the previous year.

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Headline earnings per share increased by 11% to 23.8p, which the firm said reflected reduced interest and tax charges

As previously announced, the company said a number of significant orders which had been expected and planned for production in the second half of the current financial year had been delayed and would not benefit the current financial year.

As a result the board expects that the financial results of the group for 2012/13 will be similar to those for 2011/12.

The group stressed that it is confident the delayed orders will be received for shipment in 2013/14.

Chief Executive Tim Cobbold said overall order intake had been satisfactory notwithstanding the delayed orders, with the Currency 12 month order book growing by 7% during the period.

"With the reasonable order book, a strong pipeline and continued progress on the Improvement Plan, the Board is confident in achieving a target 2013/14 operating profit in excess of £100m," he said.