De La Rue sees profits drop
BRITISH printer De La Rue yesterday reported a six per cent fall in pre-tax profits after it was hit by a hike in interest charges.
The bank note printer and cash handling machine specialist reported a $44.2m profit (£26.5m) in the six months to 26 September.
As well as higher interest charges, the cost of reorganising its cash processing arm took its toll.
But operating profits at De La Rue, which prints notes and security documents like passports for 150 countries, rose 17 per cent to $51m.
And headline earnings per share increased by 48 per cent to 35.1p, with the dividend up three per cent at 14.1p.
Movements in the value of sterling against the US dollar and euro added $14m to revenues.
Chairman Nicholas Brookes said: “The group has delivered a strong performance reflecting the successful execution of our focused strategy.”
Shares in the company, which have risen 12 per cent in the last three months, were 2.6 per cent down at 951p yesterday, valuing the group at around £960m.
Earlier this year De La Rue won a 10-year contract worth £400m to design and produce biometric UK passports and hopes the deal will help it win more lucrative passport work.
The company is the world’s leading non Government banknote printer and generates 85 per cent of profits from note printing.