Coronavirus Update

De La Rue PLC- Trading Statement for Financial Year 2020/21

This content has been sourced from: https://www.investegate.co.uk/de-la-rue-plc--dlar-...

As a result of continued positive trading, the Board expects Adjusted Operating Profit for the financial year 2020/21 to be around the top end of the £36 million to £37 million range previously indicated in the Company's trading update of 28 January 2021.

End of year Net Debt was approximately £53 million, which is lower than market expectations(1) by approximately £21 million. This is mainly due to lower capital expenditure during the year, consistent with adjustments made to the timing of capital spend as the Turnaround Plan has evolved. Total aggregate 3-year cash investment for the Turnaround Plan remains unchanged.

Due to the positive outcome of the financial year, the Company has repaid all the money received from HM Government's Coronavirus Job Retention Scheme.  Furlough payments received under this scheme totalled approximately £0.4m.

In the results for financial year 2020/21, the Company will record non-cash exceptional asset impairment and accelerated depreciation charges of approximately £13 million on historic assets, as a result of the closure of the Gateshead banknote printing operations in December 2020. Of this, approximately £12m was recorded in the second half of the year following finalisation of the detailed plans for which assets currently are expected to have any ongoing use within the group.

De La Rue expects to announce its results for the full year ended 27 March 2021 on 26 May 2021.