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Profits will be above estimates - De La Rue.

BANK note printer De La Rue has given a trading update to say that it expects profits to top estimates.

The firm said full-year revenue for the group is in line with mar ket expectations but underlying operating profit is now anticipat ed to be above the top end of the market consensus, which was set at PS66.4m for the year ending March 25, 2017.

De La Rue, which has a manu facturing centre in Gateshead, also detailed how it has been ben efiting from the weakness of the pound, although those benefits are being offset by R&D costs.

The stock market announce ment to shareholders said: "Full year revenue for the group is in line with market expectations. Full-year underlying operating profit is now anticipated to be above the top end of the market consensus.

"This out-performance has been driven by good growth in identity systems and product authentication and traceability product lines. The currency busi ness has performed in line with market expectations.

"While the sustained weakness of sterling gives us a competitive advantage in the export market, this benefit is substantially offset by increased investment in R&D, product management and sales capability, as well as the rising cost of raw materials."

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Title Annotation:Business
Publication:The Journal (Newcastle, England)
Date:Apr 12, 2017
Words:207
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