REG - De La Rue PLC - Full Year Results <Origin Href="QuoteRef">DLAR.L</Origin> - Part 2
23/05/2017 07:07
- Part 2: For the preceding part double click ID:nRSW8981Fa
- - - - (25.3) (0.3) (25.6)
Balance at 26 March 2016 46.6 35.7 5.9 2.3 (12.3) (83.8) (146.6) 6.6 (145.6)
Profit for the year - - - - - - 39.9 1.6 41.5
Other comprehensive income for the year, net of tax - - - (0.3) 2.6 - (22.8) - (20.5)
Total comprehensive income for the year - - - (0.3) 2.6 - 17.1 1.6 21.0
Transactions with owners of the Company recognised directly in equity:
Share capital issued 0.2 1.0 - - - - - - 1.2
Employee share scheme:
- value of services provided - - - - - - 1.5 - 1.5
Income tax on income and expenses recognised directly in equity - - - - - - 1.0 - 1.0
Dividends paid - - - - - - (25.4) (0.3) (25.7)
Balance at 25 March 2017 46.8 36.7 5.9 2.0 (9.7) (83.8) (152.4) 7.9 (146.6)
GROUP CASH FLOW STATEMENT For the period ended 25 March 2017
Notes 2017 2016
£m £m
Cash flows from operating activities
Profit before tax* 51.8 20.8
Adjustments for:
Finance income and expense 12.0 12.1
Depreciation 24.3 23.0
Amortisation 2.5 3.2
Decrease in inventory 3.4 5.0
Increase trade and other receivables (4.6) (2.0)
(Decrease)/increase in trade and other payables (11.9) 11.4
(Decrease)/increase in reorganisation provisions (3.6) 0.4
Special pension fund contributions (14.6) (19.1)
Loss/(profit) on disposal of property, plant, equipment and software intangibles 1.4 (7.6)
Asset impairmentLoss in disposal of discontinued operations -4.1 10.8-
Other non-cash movements (0.5) 0.9
Cash generated from operating activities 64.3 58.9
Tax paid (5.7) (4.7)
Net cash flows from operating activities 58.6 54.2
Cash flows from investing activitiesProceeds from sale of discontinued operationsTransaction costs relating to sale of discontinued operations 2.1(2.5) --
Purchases of property, plant, equipment and software intangibles (24.0) (25.0)
Development assets capitalised (2.1) (3.0)
Acquisition of subsidiary (net of cash acquired) (17.9) -
Proceeds from sale of property, plant and equipment 0.2 9.9
Net cash flows from investing activities (44.2) (18.1)
Net cash flows before financing activities 14.4 36.1
Cash flows from financing activities
Proceeds from issue of share capital 1.2 0.3
(Repayments of)/proceeds from borrowings (12.4) 3.6
Interest received - 0.1
Interest paid (4.2) (4.2)
Dividends paid to shareholders (25.4) (25.3)
Dividends paid to non-controlling interests (0.3) (0.3)
Net cash flows from financing activities (41.1) (25.8)
Net (decrease)/increase in cash and cash equivalents in the year (26.7) 10.3
Cash and cash equivalents at the beginning of the year 37.9 28.9
Exchange rate effects - (1.3)
Cash and cash equivalents at the end of the year 11.2 37.9
Cash and cash equivalents consist of:
Cash at bank and in hand 8 13.2 40.5
Short term bank deposits 8 2.2 -
Bank overdrafts 8 (4.2) (2.6)
8 11.2 37.9
*Profit before tax includes continuing and discontinued operations.
1 Basis of preparation and accounting policies
Statement of compliance These consolidated financial statements have been prepared on the going concern basis and using the historical cost convention, modified for certain items carried at fair value, as stated in the Group's accounting policies. The financial information set out above does not constitute the Group's statutory accounts for the periods ended 25 March 2017 or 26 March 2016. The financial information for the period ended 25 March 2017 is derived from the statutory accounts for the period
ended 25 March 2017 which will be delivered to the registrar of companies. The auditor has reported on the accounts for the period ended 25 March 2017; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. Significant accounting policies
The preliminary announcement for the period ended 25 March 2017 has been prepared consistently with International Accounting Standards and International Financial Reporting Standards (collectively "IFRS") as adopted by the European Union (EU) at 25 March 2017. Details of the accounting policies applied are those set out in De La Rue plc's annual report 2016. In applying the accounting policies, management has made appropriate estimates in many areas, and the actual outcome may differ from those calculated.
The key sources of estimation uncertainty at the balance sheet date were the same as those that applied to the consolidated financial statements of the Group for the period ended 25 March 2017.During the period a number of amendments to IFRS became effective and were adopted by the Group, none of which had a material impact on the Group's net cash flows, financial position, total comprehensive income or earnings per share. Forthcoming accounting standards IFRS 15 Revenue from Contracts with Customers
(effective for the year ending 30 March 2019) provides a single, principles based, five step model to be applied to all sales contracts. The Group continues to assess the impact of the new standard. IFRS 16 Leases was issued by the IASB in January 2016 (effective for the year ending 28 March 2020, not yet endorsed by the EU) replaces IAS 17. Under the new standard all it requires lessees to recognise a lease liability and a right of use asset for all leases unless the lease term is 12 months or less or the
underlying asset has a low value. Interest expense on the lease liability and depreciation on the right of use asset will be recognised in the income statement, resulting in a higher total charge to the income statement in the initial years of a lease. IFRS 16 is not expected at the current time to have a significant impact on the results of the group. The Group continues to assess the impact of the new standard. IFRS 9 Financial Instruments was issued by the IASB in July 2014. IFRS 9 introduces new
requirements for the classification, measurement and impairment of financial instruments and hedge accounting, and is required to be adopted by 29 March 2019. The Group continues to assess the impact of the new standard.
The preliminary announcement for the period ended 25 March 2017 has been
prepared consistently with International Accounting Standards and
International Financial Reporting Standards (collectively "IFRS") as adopted
by the European Union (EU) at 25 March 2017. Details of the accounting
policies applied are those set out in De La Rue plc's annual report 2016. In
applying the accounting policies, management has made appropriate estimates in
many areas, and the actual outcome may differ from those calculated. The key
sources of estimation uncertainty at the balance sheet date were the same as
those that applied to the consolidated financial statements of the Group for
the period ended 25 March 2017.During the period a number of amendments to
IFRS became effective and were adopted by the Group, none of which had a
material impact on the Group's net cash flows, financial position, total
comprehensive income or earnings per share. Forthcoming accounting standards
IFRS 15 Revenue from Contracts with Customers (effective for the year ending
30 March 2019) provides a single, principles based, five step model to be
applied to all sales contracts. The Group continues to assess the impact of
the new standard. IFRS 16 Leases was issued by the IASB in January 2016
(effective for the year ending 28 March 2020, not yet endorsed by the EU)
replaces IAS 17. Under the new standard all it requires lessees to recognise a
lease liability and a right of use asset for all leases unless the lease term
is 12 months or less or the underlying asset has a low value. Interest expense
on the lease liability and depreciation on the right of use asset will be
recognised in the income statement, resulting in a higher total charge to the
income statement in the initial years of a lease. IFRS 16 is not expected at
the current time to have a significant impact on the results of the group. The
Group continues to assess the impact of the new standard. IFRS 9 Financial
Instruments was issued by the IASB in July 2014. IFRS 9 introduces new
requirements for the classification, measurement and impairment of financial
instruments and hedge accounting, and is required to be adopted by 29 March
2019. The Group continues to assess the impact of the new standard.
2 Segmental analysis
The continuing operations of the Group have three main operating units: Currency, Identity Solutions and Product Authentication and Traceability. The Board, which is the Group's Chief Operating Decision Maker, monitors the performance of the Group at this level and there are therefore three reportable segments. The principal financial information reviewed by the Board is revenue and adjusted operating profit.
The Group's segments are:
· Currency - provides printed banknotes, banknote paper and polymer substrates and banknote security features
· Identity Solutions - involved in the provision of passport, ePassport, national ID and eID, driving licence and voter registration schemes
· Product Authentication and Traceability (previously Security Products) - produces security documents, including authentication labels, brand licensing products, government documents, cheques and postage stamps
Inter-segmental transactions are eliminated upon consolidation. Discontinued operations - The Cash Processing Solutions (CPS) operation, was primarily focused on the production of large banknote sorters and authentication machines for central banks. This business was disposed on 22 May 2016 (see Note 3).Reclassification of results between Product Authentication & Traceability and Identity Solutions Historically the results of one of the Group's sites have been included in the PA&T segment as this segment
represented the majority of its business. However, due to growth in IDS business within this site, the Chief Decision Maker has started reviewing information including its numbers split between IDS and PA&T. Therefore, in order to align the Group's external reporting segments to the information reviewed internally the results of this site have been split in the current year between the IDS and PA&T segment. The 2015/16 figures have also been adjusted for comparability.
Inter-segmental transactions are eliminated upon consolidation. Discontinued
operations - The Cash Processing Solutions (CPS) operation, was primarily
focused on the production of large banknote sorters and authentication
machines for central banks. This business was disposed on 22 May 2016 (see
Note 3).Reclassification of results between Product Authentication &
Traceability and Identity Solutions Historically the results of one of the
Group's sites have been included in the PA&T segment as this segment
represented the majority of its business. However, due to growth in IDS
business within this site, the Chief Decision Maker has started reviewing
information including its numbers split between IDS and PA&T. Therefore, in
order to align the Group's external reporting segments to the information
reviewed internally the results of this site have been split in the current
year between the IDS and PA&T segment. The 2015/16 figures have also been
adjusted for comparability.
2017 Currency Identity Solutions Product Authentication and Traceability Unallocated Total of Continuing operations Discontinued operations Total
£m £m £m £m £m £m £m
Total revenue 350.6 80.6 34.6 - 465.8 4.9 470.7
Less: inter-segment revenue (1.1) - (3.0) - (4.1) - (4.1)
Revenue 349.5 80.6 31.6 - 461.7 4.9 466.6
Adjusted operating profit/(loss) 50.3 11.4 9.0 - 70.7 (2.3) 68.4
Amortisation of acquired intangible assets - - (0.1) - (0.1) - (0.1)
Exceptional items - operating (note 4, 3) 1.9 - (0.9) (1.4) (0.4) (4.1) (4.5)
Operating profit/(loss) 52.2 11.4 8.0 (1.4) 70.2 (6.4) 63.8
Net interest expense (4.6) (4.6) - (4.6)
Retirement benefit obligations net finance expense (7.4) (7.4) - (7.4)
Profit/(loss) before taxation 58.2 (6.4) 51.8
Segment assets 243.4 46.3 23.1 137.9 450.7 - 450.7
Segment liabilities (113.0) (30.3) (10.4) (443.6) (597.3) - (597.3)
Capital expenditure on property, plant and equipment 13.1 4.5 2.6 3.3 23.5 - 23.5
Capital expenditure on intangible assets 2.1 0.6 0.1 - 2.8 - 2.8
Depreciation of property, plant and equipment 17.6 3.3 1.5 1.9 24.3 - 24.3
Impairment of property, plant and equipment - - - - - - -
Amortisation of intangible assets 1.7 0.6 0.2 - 2.5 - 2.5
Impairment of intangible assets - - - - - - -
2016 Currency Identity Solutions Product Authentication and Traceability Unallocated Total of Continuing operations Discontinued operations Total
£m £m £m £m £m £m £m
Total revenue 353.3 76.5 28.8 - 458.6 33.9 492.5
Less: inter-segment revenue (0.8) - (3.3) - (4.1) (0.2) (4.3)
Revenue 352.5 76.5 25.5 - 454.5 33.7 488.2
Adjusted operating profit/(loss) 55.1 8.3 7.0 - 70.4 (7.9) 62.5
Exceptional items - operating (note 4, 3) (13.1) - (0.5) 10.0 (3.6) (26.0) (29.6)
Operating profit/(loss) 42.0 8.3 6.5 10.0 66.8 (33.9) 32.9
Net interest expense (4.8) (4.8) (0.2) (5.0)
Retirement benefit obligations net finance expense (7.1) (7.1) - (7.1)
Profit/(loss) before taxation 54.9 (34.1) 20.8
Segment assets 238.4 43.8 15.9 143.3 441.4 11.2 452.6
Segment liabilities (119.4) (28.6) (5.3) (434.4) (587.7) (10.5) (598.2)
Capital expenditure on property, plant and equipment 11.1 0.2 1.7 3.5 16.5 - 16.5
Capital expenditure on intangible assets 3.3 1.4 0.3 - 5.0 0.3 5.3
Depreciation of property, plant and equipment 17.0 2.6 1.4 2.0 23.0 - 23.0
Impairment of property, plant and equipment 5.2 - - - 5.2 - 5.2
Amortisation of intangible assets 2.2 0.7 0.1 - 3.0 0.2 3.2
Impairment of intangible assets - - - - - 5.6 5.6
3. Discontinued operations
The Group completed the sale of the entire issued share capital of Cash
Processing Solutions Limited and related subsidiaries (together "CPS") to CPS
Topco Limited, a company owned by Privet Capital on 22 May 2016.
Under the terms of the agreement, De La Rue received £2.1m upon completion of
the transaction plus an additional £0.8m is receivable relating to a closing
working capital adjustment. In addition, deferred consideration totalling
£1.5m is payable in two equal instalments on the first and second
anniversaries of the transaction. The Group is also entitled to further
contingent consideration following the sale of up to £6m if certain
performance related and event driven milestones are achieved by CPS.
No pension liability transferred as part of the disposal.
Results of the discontinued operation including the disposal group held for
sale
2017 2016
£m £m
Revenue 4.9 33.7
Operating expenses - ordinary (7.2) (41.6)
Operating expenses - exceptional (4.1) (26.0)
Total operating expenses (11.3) (67.6)
Operating loss (6.4) (33.9)
Comprising:
Adjusted operating (loss) (2.3) (7.9)
Exceptional items (4.1) (26.0)
Loss before interest and taxation (6.4) (33.9)
Interest income - -
Interest expense - (0.2)
Net finance expense - (0.2)
Loss before taxation (6.4) (34.1)
Comprising:
Adjusted loss before tax (2.3) (8.1)
Exceptional items (4.1) (26.0)
Taxation (1.6) 3.1
Loss from discontinued operations (8.0) (31.0)
Comprising:
Adjusted (loss) for the year (2.2) (7.2)
(Loss) for the year on exceptional items (5.8) (23.8)
Assets/liabilities held for sale/disposal group
Notes 2017 2016
£m £m
Assets classified as held for sale
Derivative financial assets - 0.2
Trade and other receivables - 11.0
- 11.2
2017 2016
£m £m
Liabilities classified as held for sale
Trade and other payables - (10.0)
Derivative financial liabilities - (0.3)
Provisions for liabilities and charges - (0.2)
- (10.5)
2017 2016
£m £m
Exceptional items on discontinued operations
Site closures and restructuring - (2.6)
Remeasurement of carrying value following classification as an asset for sale - (23.4)
Loss on disposal of discontinued operations (4.1)
Exceptional items (4.1) (26.0)
Tax (charge)/credit on exceptional items (1.7) 2.2
Site closure and restructuring costs in 2015/16 were £2.6m comprising £0.7m in
staff compensation, and £1.9m for site exit costs.
In 2015/2016 asset impairments of £23.4m arising on the remeasurement of the
disposal group to fair value less costs to sell have been recognised. The
impairment related to intangibles of £1.6m, goodwill of £4.0m and inventories
of £17.8m.
The cash costs for exceptional items in the period was £2.5m (2015/16:
£1.0m).
Tax credits relating to the exceptional items arising in the period were £1.7m
(2015/16 £0.3m).
4. Exceptionalitems
2017£m 2016
£m
Site relocation and restructuring (0.2) (9.2)
Sale of land 0.2 9.5
Warranty provisions 0.5 1.3
Asset impairment - (5.2)
Acquisition related (0.9) -
Exceptional items in operating profit (0.4) (3.6)
Tax credit on exceptional items 0.6 2.3
Site relocation and restructuring costs Site relocation and restructuring costs in 2016/17 were £0.2m net (2015/16: £9.2m net)
and included charges of £1.7m including staff compensation costs related to the redesign of the organisation structure which was
offset by a credit of £1.4m in relation to the manufacturing footprint review announced in December 2015 which planned to reduce
our core banknote print production capacity from eight billion to six billion notes a year. As noted in Note 18 "Provisions for
liabilities and charges", in November 2016 we announced a refinement to that plan which resulted in a change in the total
estimate for the associated site relocation and reorganisation costs resulting in a credit to the Income Statement which has
been recorded as an exceptional item consistent to the original presentation in the Annual Report. Sale of land The gain in
2016/15 related to the sale of surplus land in Overton which generated a profit of £9.5m. Gains of £0.2m in the current year
relate to several individually small land sales. Warranty provisions Surplus warranty provisions of £0.5m in 2016/17 (2015/16:
£1.3m) have been credited to exceptional items consistent to where the cost of the original provisions was presented in the
Annual Report. Asset impairments In 2015/16 following a review of capitalised assets, £5.2m of tangible assets within the
Currency segment were written down representing assets linked with specific products whose future income streams are forecast to
be insufficient to support the current carrying value. Acquisition related De La Rue has incurred costs of £0.9m related to the
acquisition of DuPont Authentication Inc during 2016/17. These acquisition related costs include £0.5m of professional advisor
fees. In addition an amount of £0.4m has been recorded in exceptional items relating to the "unwind" of the fair value
adjustment to acquired inventory recognised on the opening day balance sheet as the related inventory was fully sold by year
end. The Directors' believe that this non-cash item is distortive to underlying profit levels compared to the expected cost of
inventories recognised as an expense for this subsidiary going forward. Net cash cost of exceptional items The net cash cost of
exceptional items for continuing operations in the period was £3.3m (2015/16: £12.5m). £0.8m of the cash cost of exceptional
items related to prior periods and primarily to payment of items associated with site relocations and restructuring. Tax credits
relating to continuing exceptional items arising in the period were £0.6m (2015/16 £2.3m).
5 Taxation
2017 2016
£m £m
Consolidated income statement
Current tax:
UK corporation tax:
- Current tax 8.4 8.3
- Adjustment in respect of prior years (0.6) (0.1)
7.8 8.2
Overseas tax charges:
- Current year 3.7 2.2
- Adjustment in respect of prior years (0.2) (0.7)
3.5 1.5
Total current income tax charge 11.3 9.7
Deferred tax:
- Origination and reversal of temporary differences, UK (0.7) (3.3)
- Origination and reversal of temporary differences, overseas (0.3) (0.1)
Total deferred tax (credit) (1.0) (3.4)
Income tax expense reported in the consolidated income statement in respect of continuing operations 8.7 6.3
Income tax expense/(credit) in respect of discontinued operations (note 3) 1.6 (3.1)
Total income tax charge in the consolidated income statement 10.3 3.2
Tax on continuing operations attributable to:
- Ordinary activities 9.3 8.6
- Exceptional items (0.6) (2.3)
Tax on discontinuing operations attributable to:
- Ordinary activities (0.1) (0.9)
- Exceptional items 1.7 (2.2)
Consolidated statement of comprehensive income:
- On remeasurement of net defined benefit liability (2.3) 5.4
- On cash flow hedges (0.1) 1.4
- On foreign exchange on quasi-equity balances (0.1) 0.4
Income tax (credit)/charge reported within comprehensive income (2.5) 7.2
Consolidated statement of changes in equity:
- On share options (1.0) 0.3
Income tax charge reported within equity (1.0) 0.3
The tax on the Group's consolidated profit before tax for continuing operations differs from the UK tax rate of 20 per cent as follows:
2017 2016
Before exceptional items Exceptional items Total Before exceptional items Exceptional items Total
£m £m £m £m £m £m
Profit before tax 58.7 (0.4) 58.3 58.5 (3.6) 54.9
Tax calculated at UK tax rate of 20 per cent (2015/16: 20 per cent) 11.7 (0.1) 11.6 11.7 (0.7) 11.0
Effects of overseas taxation (0.1) - (0.1) (1.1) - (1.1)
(Credits)/charges not allowable for tax purposes (1.8) (0.5) (2.3) (1.5) 0.8 (0.7)
Increase in unutilised tax losses (0.1) - (0.1) - (1.9) (1.9)
Adjustments in respect of prior years (0.1) - (0.1) (0.1) (0.5) (0.6)
Change in UK tax rate (0.3) - (0.3) (0.4) - (0.4)
Tax charge/(credit) 9.3 (0.6) 8.7 8.6 (2.3) 6.3
The underlying effective tax rate excluding exceptional items was 15.8 per cent (2015/16: 14.7 per cent).
6 Earnings per share
2017Continuing operations 2017Discontinued operations 2017Total pence 2016Continuing operations 2016Discontinued operations 2016Total
pence pence per pence pence pence
per per share per per per
share share share share share
Earnings per share
Basic earnings per share 47.2 (7.9) 39.3 46.8 (30.6) 16.2
Diluted earnings per share 46.6 (7.8) 38.8 46.2 (30.2) 16.0
Adjusted earnings per share
Basic earnings per share 47.1 (2.3) 44.8 48.1 (7.1) 41.0
Diluted earnings per share 46.5 (2.2) 44.3 47.5 (7.0) 40.5
Basic earnings per share is calculated by dividing the profit
attributable to equity shareholders by the weighted average number of
ordinary shares outstanding during the year, excluding those held in the
employee share trust which are treated as cancelled.For diluted earnings
per share, the weighted average number of ordinary shares in issue is
adjusted for the impact of the dilutive effect of share options.The
Directors are of the opinion that the publication of the underlying
earnings per share, before exceptional items, is useful to readers of the
accounts as it gives an indication of underlying business
performance.Reconciliations of the earnings and weighted average number
of shares used in the calculations are set out below.
Basic earnings per share is calculated by dividing the profit attributable to
equity shareholders by the weighted average number of ordinary shares
outstanding during the year, excluding those held in the employee share trust
which are treated as cancelled.For diluted earnings per share, the weighted
average number of ordinary shares in issue is adjusted for the impact of the
dilutive effect of share options.The Directors are of the opinion that the
publication of the underlying earnings per share, before exceptional items, is
useful to readers of the accounts as it gives an indication of underlying
business performance.Reconciliations of the earnings and weighted average
number of shares used in the calculations are set out below.
Earnings 2017Continuingoperations£m 2017Discontinuedoperations£m 2017Total £m 2016Continuingoperations£m 2016Discontinuedoperations£m 2016Total
£m
Earnings for basic and diluted earnings per share 47.9 (8.0) 39.9 47.4 (31.0) 16.4
Amortisation of acquired intangible assets 0.1 - 0.1 - - -
Exceptional items 0.4 4.0 4.4 3.6 26.0 29.6
Less: Tax on exceptional items (0.6) 1.7 1.1 (2.3) (2.2) (4.5)
Earnings for adjusted earnings per share 47.8 (2.3) 45.5 48.7 (7.2) 41.5
Weighted average number of ordinary shares 2017 2016
Number Number
m m
For basic earnings per share 101.6 101.3
Dilutive effect of share options 1.2 1.3
For diluted earnings per share 102.8 102.6
7 Equity dividends
2017 2016
£m £m
Final dividend for the period ended 28 March 2015 of 16.7p paid on 1 August 2015 - 16.9
Interim dividend for the period ended 26 September 2015 of 8.3p paid on 6 January 2016 - 8.4
Final dividend for the year ended 26 March 2016 of 16.7p paid on 3 August 2016 16.9 -
Interim dividend for the period ended 24 September 2016 of 8.3p paid on 11 January 2017 8.5 -
25.4 25.3
A final dividend per equity share of 16.7p has been proposed for the period ended 25 March 2017. If approved by shareholders the dividend will be paid on 3 August 2017 to ordinary shareholders on the register at 30 June 2017.
A final dividend per equity share of 16.7p has been proposed for the period
ended 25 March 2017. If approved by shareholders the dividend will be paid on
3 August 2017 to ordinary shareholders on the register at 30 June 2017.
8 Analysis of net debt
2017 2016
£m £m
Cash at bank and in hand 13.2 40.5
Short term bank deposits 2.2 -
Bank overdrafts (4.2) (2.6)
Total cash and cash equivalents 11.2 37.9
Borrowings due within one year (132.1) (144.0)
Net debt (120.9) (106.1)
(106.1)
9 Contingent liabilities
De La Rue has extensive international operations and is subject to various
legal and regulatory regimes, including those covering taxation matters from
which, in the ordinary course of business, contingent liabilities can arise.
While the outcome of litigation and disputes can never be predicted with
certainty, having regard to legal advice received and the insurance
arrangements of the Company and its subsidiaries, the Directors believe that
adequate provision has been made to cover these matters. The Group also
provides guarantees and performance bonds which are issued in the ordinary
course of business. In the event that a guarantee or bond is called,
provision may be required subject to the particular circumstances, including
an assessment of its recoverability.
10 Business combinations
On December 12, 2016 De La Rue entered into a Share Purchase Agreement ("SPA")
to acquire 100% of the outstanding capital stock of DuPont Authentication Inc
(subsequently renamed to De La Rue Authentication Solutions ("DAS")). The
acquisition completed on January 6, 2017 for a total consideration of $26.2m
(£21.3m). This included the initial cash payment of $24.8m (equivalent to
£20.2m) and a closing working capital adjustment of $1.4m (£1.1m) as per the
terms of the SPA.
DAS is a leading global producer of photopolymer holographic films and 3D
holograms and associated software. Its technology is used to authenticate
products ranging from consumer electronics to spirits and also to secure
identity documents. Its products are based on the highly specialised and
secure Lippmann holography technology. Based in Utah, USA and with operations
in Delaware, DAS has a well established global customer base in brand
protection and identity authentication. This acquisition is in line with De La
Rue's five year strategic plan to transform the Group into a technology led
Security product
- More to follow, for following part double click ID:nRSW8981FcRecent news on De La Rue
See all newsREG - Jefferies Intl Ltd - Form 8.3 - De La Rue plc
AnnouncementREG - Official List - Removal - DE LA RUE PLC
AnnouncementREG - Stock Exch Notice De La Rue PLC - Cancellation - DE LA RUE PLC
AnnouncementREG - De La Rue PLC - Scheme of Arrangement becomes effective
AnnouncementREG - Jefferies Intl Ltd De La Rue PLC - Form 8.3 - De La Rue plc
Announcement