De La Rue – trading update and UK passport tender appeal

UK passport
United Kingdom passport. Source: FCO.

In an unaudited post-close trading update for the year ended 31 March 2018 announced 18 April, De La Rue plc reported that full year revenue for the Group was expected to increase by around 6 percent year on year, with growth across all product lines.

Satisfactory start

In a related media release, the Group anticipated that full year underlying operating profit to be in the low to mid £60s million range. This reflects the write off of the c£4m bid costs related to the UK passport tender and delays in the shipment of certain contracts in the last week of the period.

At this early stage of the new financial year, the Group was cautious about the outturn for the full year, however it starts off with a satisfactory order book underpinned by 16 percent growth in total order intake driven by strong growth in Identity Solutions and Product Authentication.

No appeal

Further to the announcement on 22 March 2018 and having considered all options, the Group also announced it will not appeal against HMPO’s decision on the UK passport tender. De La Rue will continue to fulfil its existing contract and assist with transition to the new supplier. It is therefore expecting no impact on the Group’s performance in the next 18 months.

The Board will give further details on the ongoing business and prospects for the coming year at the full year results.

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