Banknote printer De La Rue said on Tuesday that full-year adjusted operating profit is set to be at the top end of its guidance following “continued positive trading”, and that it has repaid all the money it received from the government’s furlough scheme.
In an update for the year ending 27 March 2021, the company said it now expects adjusted operating profit to be around the top end of the £36m to £37m range it gave in January.
It also said it has repaid in full the money received from the government’s Coronavirus Job Retention Scheme. Furlough payments received under this scheme totalled around £400,000.
End of year net debt came in at around £53m, which is approximately £21m lower than market expectations. The company attributed this mainly to lower capital expenditure during the year, consistent with adjustments made to the timing of capital spend as the Turnaround Plan has evolved.
Broker Numis said the new operating profit guidance suggests an outperformance of around 2% versus its £36.3m forecast.
“Overall, we view this as a reassuring update, and continue to view the shares as attractively valued on circa 12x FY22E price-to-earnings and circa 10x FY22E EV/EBITA.”
