De La Rue PLC - Hampshire, England-based banknote and security document printer - Reports positive momentum in both its Authentication and Currency divisions with a number of significant recent contract wins and renewals. Says there is no change to its previous guidance for the financial year that ended March 30. This was for adjusted operating profit in the ‘low £20 million’ range and would represent a decline from financial 2023’s £27.8 million. De La Rue on Thursday also says it has reached agreement with two existing Government Revenue Solutions customers that it doesn’t name. The three- and five-year extensions, respectively, of existing contracts are to supply a digital tax stamp solution to track and trace excisable products. Says the two renewals have a total contract value in excess of £150 million.
Chief Executive Officer Clive Vacher comments: ‘We are delighted to extend our relationship with these high-profile customers within our Authentication division. This, alongside other recent renewals and the expanding Currency order book, demonstrates further progress in the development of De La Rue which will help to underpin our performance in FY25.’ De La Rue expects to release its annual results in late July.
De La Rue also says it is evaluating strategic options for each of its two divisions and for the group as a whole. As a result, the board is in discussion with ‘a number of parties’ who have expressed merger or acquisition interest.
Current stock price: 100.00 pence, up 2.0% in London on Thursday
12-month change: more than doubled from 39.05p
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