Banknote printer De La Rue has today reported it halved its net debt in the year to 27 March with Covid ‘turnaround’ measures, ahead of the group’s new £50 banknote due for release next month.
Already creating a new banknote making its way to people’s pockets in June for the Bank of England (BoE), the group has won another BoE contract for the polymer substrate used in plastic banknotes starting in July.
“We have made encouraging progress in our polymer growth plans, securing a new site to double capacity during FY 2021/22,” CEO Clive Vacher said.
Shares steadied this afternoon, dipping just 1.29 per cent at 189.4p per share, after plunging 4.08 per cent this morning.
De La Rue had a turbulent year, as adjusted revenue sank 10.2 per cent from £432m to £388.1m in 2021.
Adjusted operating profits increased by 60.8 per cent to £38.1m, the group reported in a statement this morning. However, IFRS operating profit noted a plunge of 66.1 per cent with a profit of £14.5m, due to it closing its Gateshead printing facility last year.
Last year, the group confirmed it was initiating a three-year turnaround plan to boost its financial performance.
Net debt was nearly halved from £102.8m in the year ending in 2020, to £52.3m – which was boosted by the group’s £100m equity capital raise in July last year.
The turnaround plan has since delivered £6m in year savings for 2020 and £23m in savings for this financial year. De La Rue expects a further £7m of in-year savings to come in the next financial year.
Meanwhile, adjusted earnings per share lifted 32.4 per cent to 14.7p.
“Both our ongoing divisions are performing well and the group has delivered good growth in adjusted operating profits as we complete the first full year of our Turnaround Plan,” Vacher added.