Home
ty papa m for this article
Banknotes printer De La Rue today set out plans to save more of what it makes, with a £40 million-a-year cost-cutting drive.
The move comes as the Bank of England’s note-printer blamed increasing competition and delays to orders for an 8% fall in revenues to £483.7 million for the year to April, while underlying pre-tax profit inched up 2% to £59.1 million.
De La Rue, which issued a profit warning in November after delays to some of its currency contracts, said some of these orders have now been received.
But its 12-month order book is down 14% at £158 million, though De La Rue claimed “the pipeline of order opportunities is strong”.
De La Rue had been planning on trimming costs by £30 million, but now says it will shave them by £40 million, after moving operations from Dunstable to Gateshead and negotiating new staff contracts.
“We enter the new financial year with increased cost savings identified and a strong pipeline of order opportunities,” chief executive Tim Cobbold said.
The firm’s flagship £1 billion contract with the Bank of England is up for renewal this year.
De La Rue has held the Bank of England contract since 2003, but a deal to print 12 billion banknotes for a decade from 2015 has been put out to tender by the Threadneedle Street institution, and overseas bidders are expected to be interested
[You must be registered and logged in to see this link.]
Banknotes printer De La Rue today set out plans to save more of what it makes, with a £40 million-a-year cost-cutting drive.
The move comes as the Bank of England’s note-printer blamed increasing competition and delays to orders for an 8% fall in revenues to £483.7 million for the year to April, while underlying pre-tax profit inched up 2% to £59.1 million.
De La Rue, which issued a profit warning in November after delays to some of its currency contracts, said some of these orders have now been received.
But its 12-month order book is down 14% at £158 million, though De La Rue claimed “the pipeline of order opportunities is strong”.
De La Rue had been planning on trimming costs by £30 million, but now says it will shave them by £40 million, after moving operations from Dunstable to Gateshead and negotiating new staff contracts.
“We enter the new financial year with increased cost savings identified and a strong pipeline of order opportunities,” chief executive Tim Cobbold said.
The firm’s flagship £1 billion contract with the Bank of England is up for renewal this year.
De La Rue has held the Bank of England contract since 2003, but a deal to print 12 billion banknotes for a decade from 2015 has been put out to tender by the Threadneedle Street institution, and overseas bidders are expected to be interested
[You must be registered and logged in to see this link.]
