De La Rue reiterates FY guidance as H1 profits beat forecasts

Banknote printer De La Rue reiterated its full-year guidance on Tuesday after the group's interim profits came in ahead of previous forecasts.

De La Rue said authentication revenue rose 5.7% to £48.1m in the six months ended 30 September, while currency revenue fell 2.6% to £113.4m.

As a result, adjusted operating profits came to £7.9m for the half, below the £9.3m recorded a year earlier but ahead of previous guidance for a breakeven performance. Pre-tax losses, on the other hand, widened to £16.8m from £15.9m.

Net debt was well below its previous guidance of £100.0m at £82.0m.

De La Rue still opted to stand by its full-year guidance, with adjusted operating profits expected in the low £20.0m range, while net debt was pegged to be in the mid-£90.0m range.

Chairman Clive Whiley said: "The interim results released this morning represent demonstrable progress with adjusted operating profit ahead of guidance, lower net debt, pension deficit repair contributions reduced by £28.0m over the next three years, significantly enhanced contract win rates and renewed confidence within the management team."

As of 0900 GMT, De La Rue shares were down 5.80% at 76.30p.

Reporting by Iain Gilbert at Sharecast.com