25th Nov 2020 11:28
(Alliance News) - De La Rue PLC on Wednesday said its revenue in the first half of its current financial year was hurt by contract run-offs, while it swung to profit on lower operating costs.
The Basingstoke, England-headquartered polymer and security printed products manufacturer reported revenue of GBP179.7 million for the six months ended September 28, down 23% from GBP232.3 million posted a year earlier. The company said revenue reduced mainly due to the decline in Identity Solutions revenue as a result of the sale of the International Identity Solutions business in October 2019 and the run-off of the UK passport contract.
De La Rue swung to a pretax profit for the half-year of GBP2.5 million compared to GBP12.1 million loss a year prior, as adjusted operating expenses were reduced 31% to GBP34.1 million from GBP49.1 million year-on-year.
Going forward, the company said authentication secured contracts of total multi-year lifetime value exceeded GBP120 million in year to date, with new contracts delivering revenue in the second half of the company's current financial year.
"Trading for the financial 2021 has been positive, with the outlook for revenue, adjusted operating profit and net debt for the full year in line with the board's expectations," said Chief Executive Clive Vacher.
De La Rue shares were trading 6.6%% lower in London on Wednesday at 168.80 pence each.
By Evelina Grecenko; [email protected]
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