In This Article:
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Revenue: GBP145.1 million, down GBP16.4 million or 10.2% year-on-year.
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Adjusted Operating Profit: GBP7.3 million, down GBP0.6 million or 7.6% year-on-year.
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IFRS Operating Profit: GBP1.3 million, moving from a previous operating loss.
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Order Book: GBP338 million at the end of November 2024, a record level for the last five years.
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Authentication Division Sale: Agreed sale for GBP300 million, expected to complete in the first half of 2025.
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Exceptional Items: GBP5.5 million, primarily related to the separation of the authentication business.
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Net Debt: Increased due to a GBP17.9 million cash outflow from working capital.
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Gross Margin: Improved due to a better mix of sales and higher-margin contracts.
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Currency Division Revenue: Fell by GBP18.5 million due to delivery schedule shifts.
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Authentication Revenue: Slight increase of GBP2.1 million year-on-year.
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Cash Flow: GBP17.9 million cash outflow from working capital, with significant receivables settled post-period.
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CapEx: GBP3.8 million net of grant income, expected to increase in the second half.
Release Date: December 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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De La Rue PLC (DLUEY) achieved first-half profits ahead of guidance with an adjusted operating profit of GBP7.3 million.
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The company's order book reached a record level of GBP338 million, the highest in at least the last five years.
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The currency division maintained profitability during its traditionally weaker first half, with a high win rate in currency tenders.
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The sale of the authentication division to Crane NXT for GBP300 million is expected to transform the company's financial position.
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De La Rue PLC (DLUEY) is experiencing strong demand for polymer banknotes, with production expected to double in the second half of the year.
Negative Points
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Group revenue fell by over GBP16 million period on period, reflecting a challenging delivery schedule within the currency business.
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The company experienced a GBP17.9 million cash outflow from working capital, impacting operating cash flow.
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Revenue for the period decreased by 10.2% compared to the first half of the previous year.
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The authentication division's operating profits remained broadly flat despite a slight increase in revenue.
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De La Rue PLC (DLUEY) incurred GBP5.5 million in pretax exceptional costs, primarily related to the separation of the authentication business.
Q & A Highlights
Q: How does the high win rate in the currency order book relate to pricing dynamics in the market? A: Clive Vacher, CEO, explained that pricing is currently favorable due to significant market demand and strong relationships with high-value customers. De La Rue is capturing more of the value chain, particularly with the shift from paper to polymer banknotes and the development of advanced security features, which enhances pricing dynamics.