The number of banknotes that are produced by private contractors is likely to double over the next two decades in a “gradual but remorseless” trend for central banks to outsource, according to De La Rue.
Although monetary authorities in key markets including the US, Russia and China were unwilling for security reasons to farm out production, others were likely to follow the example set by the Bank of England, said James Hussey, De La Rue chief executive.
In the job since the turn of the year, Mr Hussey said the banknote printer was well placed following a reorganisation and sale of its cash systems business.
Revenue in the six months to September 26 rose from £244.7m to £252.2m, while an “unusually favourable mix of work” helped operating profit rise 17 per cent.
However, the performance of its remaining cash processing operations – which made an operating loss of £1.6m ($2.7m) – disappointed analysts. The shares fell 16½p to 959p.
Mr Hussey said a recent £400m contract win to supply the UK’s biometric passports was “the sort of thing I’m talking about in terms of the growth of our non-banknote business”.
Interest charges weighed on the bottom line, and pre-tax profit fell from £47.2m to £44.2m. Earnings per share were 31.7p (220.5p), and the interim dividend rises from 13.7p to 14.1p.
Source: http://www.ft.com/cms/s/0/6be77156-d921-11de-b2d5-00144feabdc0.html?nclick_check=1
