The De La Rue plc (LON: DLAR) share price fell 6.68% after announcing its financial results for the six months ending September 30, 2023. De La Rue achieved an adjusted operating profit of £7.9 million during H1 24, exceeding the previous guidance of breaking even.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Furthermore, the IFRS operating loss was significantly reduced to £3.4 million (compared to £12.6 million in H1 23). The Company's authentication revenue demonstrated a solid growth of 5.7%, reaching £48.1 million during H1 24, compared to £45.5 million in H1 23.
While currency revenue slightly decreased by 2.6% to £113.4 million in H1 24 (compared to £116.4 million in H1 23), the Company's overall performance remained robust. De La Rue maintained its net debt at £82 million during H1 24, consistent with the October 2023 trading statement.
This achievement surpassed the previous guidance of £100 million in net debt. Additionally, the Company generated an operating cash inflow of £15.4 million in H1 24, a substantial improvement from the £2.8 million outflow in H1 23.
The Company extended its banking facilities until July 2025, with a reduced revolving credit facility (RCF) limit of £235 million, down from £250 million.
De La Rue's pension situation improved significantly. The actuarial valuation showed a deficit of £78 million compared to previously projected contributions of £84.7 million. The deficit repair contributions remain on hold for FY24, and they will be reduced to £8 million annually from FY25 to FY27, resulting in a total saving of £28 million over that period.
Contributions will then increase from FY28 to FY31 to clear the deficit by December 2030 (previously projected to be cleared by March 2029).
Clive Vacher, CEO of De La Rue, commented: “De La Rue's robust performance in the first half reflects the important actions that we have taken since 2020 to make the company resilient to changing market conditions. These actions have allowed us to navigate a downturn over the past 18 months, particularly in Currency, and I am pleased that the market is now showing signs of continuing recovery. We have doubled the Currency order book since September 2023 and are exhibiting a high win rate, with more opportunities in the pipeline.”
De La Rue share price.
The De La Rue share price fell 6.68% to trade at 74.0p from Monday’s closing price of 79.3p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.