1st Jun 2020 10:32
(Alliance News) - De La Rue PLC said Monday it has made a strong start to its year ending March 31, 2021, as the Covid-19 outbreak has had a limited impact on operations.
Shares in De La Rue were 61% higher at 65.60 pence on Monday in London.
In its Authentication division, the banknotes and passports printer noted the signing of a five-year agreement to supply polycarbonate data pages for the new Australian passport.
To date, De La Rue's Authentication unit has been awarded contract with a total lifetime value of GBP100 million, further underpinning the group's expectations of the business reaching revenue of GBP100 million by the 2022 financial year, with strong operating margins.
Meanwhile, in Currency, De La Rue is still experiencing strong demand that has remained throughout the Covid-19 pandemic, and has been awarded contracts reflecting around 80% of its annual Currency printing capacity.
As a result, the group continues to expect Currency unit to reach a mid-teens adjusted operating margin in its 2021 financial year.
"The company has experienced no material problems regarding raw material supply, while there have been minor delays to the transportation of finished products that are expected to be resolved shortly," De La Rue stated.
By Dayo Laniyan; [email protected]
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