2nd Dec 2015 08:07
LONDON (Alliance News) - De La Rue PLC on Wednesday reiterated that it expects to save more than GBP13.0 million annually from its financial year ending in 2019, after the banknote printer published the results of a review that will reduce print capacity and hit hundreds of jobs.
The group is reducing banknote print capacity by 2.0 billion to 6.0 billion per annum, and will halve the number of production lines to four.
The plan means the company will no longer print banknotes in Malta, instead focusing on three "centres for excellence" in the UK, Kenya and Sri Lanka. A "centre for excellence" for identity and security print will be created in Malta, as De La Rue targets those markets.
The restructuring plan will affect about 400 jobs, with about 300 being at risk of redundancy, mainly in Malta. A formal consultation with the employees in question is already underway, De La Rue said.
The group said it expects capital expenditure of less than GBP30.0 million, half of which is incremental to normal annual run rate, and "exceptional" restructuring costs of GBP8.0 million.
"As the leading commercial designer and printer of banknotes and passports, our manufacturing footprint review has identified significant opportunities for improvements in capability and efficiency. Today we are announcing plans to achieve a more streamlined De La Rue, in line with the future needs of our global customers, focused on centres for excellence with investment that underpins our future," Chief Executive Martin Sutherland said in a statement.
Shares in De La Rue were up 2.2% to 472.00 pence on Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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