In a trading statement issue today (13 April) the world’s largest banknote printer said that its underlying operating profit was likely to be circa £62m, which is above previous expectations. Sales were “broadly in line with expectations,” it said.
Its share price soared by 12.6% in early trading as a result, and was up 49.25p at 482.5p at the time of writing (52-week high: 605p, low: 395p). De La Rue shares had been badly hit by challenging trading conditions at the group, including stiff competition and lower prices in banknote printing.
The group, which began printing the new £5 polymer banknote last September, also said its net debt had reduced by £5m to £106m.
It will announce its year-end results next month.
Separately, De La Rue has distanced itself from revelations in the so-called ‘Panama Papers’ involving a secretive Panama firm linked to a former Indian intermediary, who helped De La Rue win substantial contracts with the Reserve Bank of India.
De La Rue told the Financial Times that current management had no knowledge of the situation, which covered a period from 2002-2010, until documents leaked from Mossack Fonseca were published in the Indian Express newspaper.
