De La Rue sees paper volumes decline and reveals continued delays

Bank note printer De La Rue has said that while banknote print volumes were up 4.0 per cent to 2.9bn notes in the six months ended September 29th, banknote paper volumes declined 15 per cent to 4,500 tonnes.

Bank note printer De La Rue has said that while banknote print volumes were up 4.0 per cent to 2.9bn notes in the six months ended September 29th, banknote paper volumes declined 15 per cent to 4,500 tonnes.

The group said the decline was a reflection of the "more challenging market" following the introduction of additional capacity by other manufacturers.

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

More positively, half year group operating profits came in as expected, up 5% on the same period the previous year at around £33m, on sales of £245m, which were 3% higher than those generated in the same period in 2011.

"We have continued to make good progress with the Improvement Plan and this together with lower cotton prices has offset the effects of the paper volume movement and an adverse currency 'mix' compared with the corresponding period," the group said.

"The board remains confident that the delayed orders will be received for shipment in 2013/14 and in delivering the Improvement Plan, which has a target 2013/14 operating profit of in excess of £100m."

NR

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