De La Rue trading in line amid challenging market

Commercial banknote printer De La Rue has reiterated that results for the current year are expected to be flat on 2011/12 after an 'in-line' performance in the third quarter.

Commercial banknote printer De La Rue has reiterated that results for the current year are expected to be flat on 2011/12 after an 'in-line' performance in the third quarter.

The firm said on Friday that its Currency Division is expected to produce 6.4bn banknotes and around 9,000 tonnes of banknote paper in the financial year ending March 31st. The year before, print volumes were the same at 6.4bn, though paper volumes were much higher at 11,000.

De La Rue said that order intake has been "satisfactory" since the end of the first half (September 30th). However, on a positive note, while De La Rue said in November that it had experienced delays to a number of significant orders and these would not be received before the year-end, Friday's statement highlighted that "some" of these have now been collected.

"As anticipated the banknote paper market remains challenging, reflecting the introduction of additional capacity by other manufacturers, with continuing evidence of pricing pressure," the company said.

The company said it remains confident of delivering its "Improvement Plan" which is targeting operating profit of over £100m in the 2013/14 financial year. This compared with an operating profit of £63.1m in 2011/12.

Shares were up 2.0% at 920p by 08:05.

Recommended

The Burberry share price looks like a good bet
Trading

The Burberry share price looks like a good bet

The Burberry share price could be on the verge of a major upswing as the firm’s profits return to growth.
5 Oct 2022
3 emerging market dividend stocks to buy now
Share tips

3 emerging market dividend stocks to buy now

Professional investor Omar Negyal of the JPMorgan Global Emerging Markets Income Trust picks three of his favourite emerging market stocks for income …
4 Oct 2022
Share tips of the week – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022

Most Popular

Should you take a 25% tax-free pension lump sum in instalments?
Pensions

Should you take a 25% tax-free pension lump sum in instalments?

Taking out a 25% tax-free lump sum sounds appealing but it might not be the best way to manage your pension
30 Sep 2022
Mortgage early repayment charges: are they worth the cost?
Mortgages

Mortgage early repayment charges: are they worth the cost?

With interest rates set to rise further in the months ahead, is it worth swallowing early repayment charges to refinance your mortgage today?
4 Oct 2022
Why the Bank of England intervened in the bond market
Government bonds

Why the Bank of England intervened in the bond market

A sudden crisis for pension funds exposed to rapidly rising bond yields meant the Bank of England had to act. Cris Sholto Heaton looks at the lessons …
30 Sep 2022