De La Rue PLC eyes dividends in 2023 after swinging to interim profit
Full-year trading has been positive, with the outlook in line with the board’s expectations
() said it expects to generate positive free cash flow and support sustainable cash dividends to shareholders in 2023, as it swung to an interim profit.
The group noted that 2023 is when its turnaround plan, also funded by a recent £100mln equity raise, is expected to end.
READ: De La Rue extends contract to print Bank of England notes
This year, the firm expects to save £23mln and to use 100% of its available polymer and banknote printing capacity, with expected improved higher revenue and margin mix in the second half.
The passport and banknote printer said so far full-year trading has been positive, with the outlook for revenue, adjusted operating profit and net debt in line with the board’s expectations.
Authentication awarded contracts of total multi-year lifetime value are exceeding £120mln in the year to date, with new contracts delivering revenue in the second half, underpinning guidance for £100mln of full-year revenue.
In the six months to September 26, 2020, De la Rue’s adjusted revenue dropped by 15% to £174mln, while last year’s £12mln loss before tax was turned into a £3mln profit.
Shares dropped 3% to 174.47p on Wednesday at the opening bell.
Read More: De La Rue PLC eyes dividends in 2023 after swinging to interim profit