De La Rue shares leap as full-year operating profit is set to beat expectations

 
Courtney Goldsmith
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A photo illustration shows British sterl
De La Rue is moving away from the cash printing business (Source: Getty)

Shares in banknote maker De La Rue jumped today after the firm said its full-year underlying operating profit will be ahead of expectations.

In a trading update for the year to 25 March, the nearly 200-year-old company said full year revenue is in line with market expectations.

Shares in the company rose 7.83 per cent to 668p in afternoon trading.

De La Rue said its outperformance in terms of profit has been driven by good growth in its identity systems and product authentication and traceability product lines.

Meanwhile, its currency business has performed in line with market expectations.

The firm has a five-year strategic plan to transform into a technology-led identification business and move away from cash printing.

Net debt is expected to be around £120m, about £14m higher than it was at the end of the previous year following the completion of the $25m (£20m) acquisition of DuPont Authentication in January.

De La Rue said weak sterling gave the company a competitive advantage in terms of exports, but that benefit has been offset by increased investment in research and development, product management and sales capability along with the rising cost of raw materials like cotton.

The firm also today announced chief operating officer and executive director Rupert Middleton, who joined the company in 2011, will step down from the board after its annual general meeting on 20 July.

The group will issue its full-year results on 23 May.

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