Pre close Statement for Year Ending 29 March 2008
Prior to entering its close period for the year ending 29 March 2008, the Board of De La Rue plc today issues the following trading update. The Company’s full year results are due to be announced on 22 May 2008.
Trading for the Group during the last quarter of the year has continued to be in line with our prior expectations. Within Security Paper and Print, strong banknote demand supported by productivity improvements has resulted in both year on year revenue and margin improvement.
Within Cash Systems, both equipment and service volumes have remained in line with our expectations, notwithstanding the more uncertain financial environment. Modest revenue growth is anticipated for the year, despite a weakening US dollar, whilst margin improvement has been achieved from ongoing improvements to the supply chain.
Cashflow remains a key strength of the Group and will again demonstrate a good level of operating cash conversion. Growth in trade working capital reflects the high trading activity in the Currency operations together with the anticipated reduction in advance payments, following the exceptional inflow in 2006/2007.
The Group order book has improved in both divisions compared with the prior year, most particularly in the Currency activities. Visibility in the Security Paper and Print Division has further improved for the next financial year and the Board remains confident of the outlook for 2008/2009.