DE LA RUE PLC INTERIM REPORT 2012 Throughout this Interim Report, - PDF document

DE LA RUE PLC INTERIM REPORT 2012

Throughout this Interim Report, ‘Group’ is used as a collective term to describe De La Rue plc and its subsidiary companies. ‘Company’ is a reference to De La Rue plc. For further information visit De La Rue’s website at www.delarue.com De La Rue is the world’s largest The Group has in recent years been involved integrated commercial banknote printer in the design or production of over 150 national and is a trusted partner of governments, currencies and a wide range of security central banks, issuing authorities and documents including passports, driving licences, commercial organisations around authentication labels and tax stamps. In addition, the world. the Group manufactures sophisticated, high speed cash sorting and inspection equipment. De La Rue also offers a range of De La Rue employs approximately specialist services and software solutions 4,000 people worldwide and is listed including government identity schemes, on the London Stock Exchange. product authentication systems and cash management processing solutions. Overview 1 Key financials 2 Headlines and CEO comment 3 Interim statement Governance 5 Directors’ report Financial statements 6 Independent Review Report to De La Rue plc 7 Group Condensed Consolidated Interim Income Statement – unaudited 8 Group Condensed Consolidated Interim Statement of Comprehensive Income – unaudited 9 Group Condensed Consolidated Interim Balance Sheet – unaudited 10 Group Condensed Consolidated Interim Statement of Cash Flows – unaudited 11 Group Condensed Consolidated Interim Statement of Changes in Equity – unaudited Notes to the financial statements 12 Notes to the Condensed Consolidated Interim Financial Statements – unaudited

KEY FINANCIALS Overview Governance REVENUE OPERATING PROFIT* Half year 2012/13 Half year 2012/13 £245.4m £33.2m Half year 201 1/12: £238.1m Half year 201 1/12: £31.5m Financial statements PROFIT BEFORE TAX PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS Half year 2012/13 Half year 2012/13 £31 .5m £27 .9m Half year 201 1/12: £29.0m Half year 201 1/12: £27.1m HEADLINE EARNINGS PER SHARE* DIVIDEND PER SHARE Notes to the financial statements Half year 2012/13 Half year 2012/13 23.8p 14. 1p Half year 201 1/12: 21.4p Half year 201 1/12: 14.1p *Operating profit is shown before an exceptional charge of £3.6m (2011/12: £1.9m). Headline EPS is reported before the exceptional charge and exceptional tax credits of £5.0m (2011/12: £0.5m). The Directors are of the opinion that these measures give a better indication of underlying performance. De La Rue Interim Report 2012 1

of฀which฀Currency฀orders฀up฀7%฀at฀£195m฀ •฀฀ •฀฀ Revenue฀up฀3%฀to฀£245m฀with฀a฀strong฀ •฀฀ •฀฀ Operating฀profjt฀up฀5%฀to฀£33m •฀฀ Banknote฀print฀volumes฀up฀4%฀to฀2.9bn฀notes,฀ paper฀volumes฀down฀15%฀to฀4,500฀tonnes฀ Group฀12฀month฀order฀book฀maintained฀at฀£248m,฀ HEADLINES AND CEO COMMENT HEADLINES TIM COBBOLD, CEO, COMMENT “ During the first half of the year we have reported performance in Solutions satisfactory growth in revenue and operating profit despite a more challenging banknote paper market. We made good progress in implementing the Improvement Plan with a continued focus on procurement, quality improvement and reducing waste which has delivered cumulative savings of £12m to date. We remain on track to achieve Improvement฀Plan฀benefjts฀of฀£4m฀realised฀ the Plan’s £30m per annum of savings. in the period “ As previously announced, a number of significant orders have been delayed. The Board remains confident that these orders will be received for shipment in 2013/14. “ Overall order intake has been satisfactory notwithstanding the delayed orders, with the Currency 12 month order book growing by 7 per cent during the period. With the reasonable order book, a strong pipeline and continued progress on the Improvement Plan, the Board is confident in achieving a target 2013/14 operating profit in excess of £100m.” De La Rue Interim Report 2012 2