REG - De La Rue PLC - Full Year Results <Origin Href="QuoteRef">DLAR.L</Origin> - Part 3

De La RueAnnouncement

23/05/2017 07:06

- Part 3: For the preceding part double click  ID:nRSW8981Fb 

and service provider. It will strengthen De La Rue's Security
Features, Product Authentication & Traceability, and Identity Solutions
product lines. DuPont Authentication's proprietary technology will also
provide a solid platform for De La Rue to create new applications for the
Currency market. 
 
Goodwill of $12.1m (£9.8m) was recognised on the acquisition, being the excess
of the purchase consideration over the fair value of net assets acquired as
set out below. Through the acquisition of DAS, De La Rue has acquired the
intellectual property, trade names and existing customer relationships and
these intangible assets have been valued at $8.9m (£7.2m). 
 
                                  Provisional2017  
                                  £m               
 ASSETS                                            
 Non-current assets                                
 Property, plant and equipment    2.1              
 Intangible assets                7.2              
                                  9.3              
 Current assets                                    
 Inventories                      2.7              
 Trade and other receivables      1.1              
 Cash and cash equivalents        2.3              
                                  6.1              
 Total assets                     15.4             
 LIABILITIES                                       
 Current liabilities                               
 Trade and other payables         0.7              
                                  0.7              
 Non-current liabilities                           
 Deferred tax liabilities         3.2              
 Total liabilities                3.9              
 Total identifiable assets        11.5             
 Goodwill                         9.8              
 Total consideration              21.3             
 
 
Consideration was fully satisfied in cash. The closing working capital
adjustment of $1.4m (£1.1m) was paid post year end. Acquisition related costs
of £0.5m were recognised in the Income Statement (See Note 4 "exceptional
items"). 
 
DAS contributed £2.2m of revenue and loss of £0.1m to the Group's profit
(£0.3m profit based on adjusted operating profit which excludes £0.4m unwind
of the fair value adjustment to acquired inventory. See note 4 for more
details) since acquisition and the balance sheet date. If the acquisition had
been completed on the first day of the financial year, revenues for the period
would have been £10.6m and the profit would have been £1.0m (£1.7m based on
adjusted operating profit). 
 
11 Dates 
 
The consolidated accounts have been prepared as at 25 March 2017, being the
last Saturday in March. The comparatives for the 2015/16 financial year are
for the period ended 26 March 2016. 
 
12 Statutory accounts 
 
Statutory accounts for the period ended 25 March 2017 will be made available
to shareholders for subsequent approval at the Annual General Meeting and
copies will be available from the Company Secretary at De La Rue plc, De La
Rue House, Jays Close, Viables, Hampshire, RG22 4BS. 
 
13 Foreign exchange 
 
 Principal exchange rates used in translating the Group's results:  
                                                                    2016/17  2015/16   
                                                                    Average  Year End  Average  Year End  
 US dollar                                                          1.32     1.25      1.50     1.41      
 Euro                                                               1.20     1.16      1.36     1.27      
 
 
14 Non-IFRS financial measures 
 
De La Rue plc publishes certain additional information in a non-statutory
format in order to provide readers with an increased insight into the
underlying performance of the business. The Directors are of the opinion that
these measures give a better understanding of the underlying performance of
the business. Amortisation of acquired intangible assets is a non-cash item
and by excluding this from the adjusted operating profit metrics this is
deemed to be a more meaningful metric of the contribution from the underlying
business. The measures the Group uses along with appropriate reconciliations
where applicable are shown below. 
 
Adjusted operating profit 
 
Adjusted operating profit represents earnings from continuing operations
adjusted to exclude exceptional items and amortisation of acquired intangible
assets. 
 
                                                                 2017  2016  
                                                                 £m    £m    
 Operating profit from continuing operations on an IFRS basis    70.2  66.8  
 - Amortisation of acquired intangible assets                    0.1   -     
 - Exceptional items - operating                                 0.4   3.6   
 Adjusted operating profit from continuing operations            70.7  70.4  
 
 
Adjusted earnings per share 
 
Adjusted earnings per share are the earnings attributable to equity
shareholders, excluding exceptional items and amortisation of acquired
intangible assets and discontinued operations divided by the weighted average
number of ordinary shares dual share in issue. It has been calculated by
dividing the De La Rue plc's adjusted operating profit from continuing
operations for the period by the weighted average number of ordinary shares in
issue. 
 
                                                                                                          2017                  2016             
                                                                                                          £m                    £m               
 Profit attributable to equity shareholders of the Company from continuing operations on an IFRS basis    47.9                  47.4             
 - Amortisation of acquired intangible assets                                                             0.1                   -                
 - Exceptional items                                                                                      0.4                   3.6              
 - Tax on exceptional items                                                                               (0.6)                 (2.3)            
 Adjusted profit attributable to equity shareholders of the Company from continuing operations            47.8                  48.7             
 Weighted average number of ordinary shares for basic earnings                                            101.6                 101.3            
                                                                                                                                                 
                                                                                                          2017 pence per share  2016             
                                                                                                                                pence pershare   
 Earnings per ordinary share continuing operations on an IFRS basis                                       47.2p                 46.8p            
 Adjusted earnings per ordinary share for continuing operations                                           47.1p                 48.1p            
 
 
Return on capital employed (ROCE) 
 
Return of capital employed is the ratio of the operating profit before
exceptional items and adjusting items over capital employed, where capital
employed equals net assets, excluding pensions, tax interest and long term
liabilities. 
 
Cash conversion 
 
Cash conversion is the ratio of adjusted operating cash flow divided by the
adjusted operating profit. 
 
15 De La Rue financial calendar 2016/17 
 
 Ex-dividend date for 2016/17 final dividend  29 June 2017   
 Record date for final dividend               30 June 2017   
 Annual General Meeting                       20 July 2017   
 Payment of 2016/17 final dividend            3 August 2017  
 
 
This information is provided by RNS
The company news service from the London Stock Exchange