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De La Rue shares jump after profits and jobs boost

August Graham, PA City Reporter
·2-min read

Shares in De La Rue rose after the company revealed that profits will be ahead of expectations and it is creating 70 jobs.

The banknotes printer said operating profit in the year ending in March is expected to reach between £36 million and £37 million, barring any major Covid-19 developments.

This is ahead of average analysts’ expectations of around £34 million, De La Rue said, and comes amid a three-year, nearly £80 million plan to get the company back on track.

Shares leapt by 6.5% a couple of hours after markets opened in London on Thursday.

Chief executive Clive Vacher said: “I am pleased that we are able to report increased adjusted operating profit expectations for the year, due to positive trading.

“We remain focused on delivering shareholder value through the successful execution of our turnaround plan.”

The company said it will be spending another £5 million on its strategy to print polymer banknotes, in addition to the £15 million it had already indicated would be invested.

Included in this plan was a search for somewhere in the UK to print the notes.

On Thursday, De La Rue said it has bought a new building next to its existing site in Westhoughton, near Bolton, in Greater Manchester.

The line will be fully operational before the end of this year, and will double polymer production capacity while adding 70 new jobs over the next two-and-a-half years.

“I am delighted to announce further investment in manufacturing and job creation in the North West of the UK, as we continue to increase our polymer market share globally,” Mr Vacher said.

“It is a fitting endorsement of the technical and operational capabilities of our Westhoughton site that we have made the decision to concentrate our polymer substrate manufacturing into this centre of excellence.”