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RNS Number : 1277N De La Rue PLC 28 January 2021 The information contained within this announcement is deemed to constitute inside information as stipulated under the ( Retained EU Legislation ) Market Abuse Regulation ( EU ) No.596 / 2014 . Upon the publication of this announcement , this inside information is now considered to be in the public domain . 28 January 2021 DE LA RUE PLC TRADING UPDATE De La Rue plc ( LSE : DLAR ) ( " De La Rue " or the " Company " ) today announces a trading update for financial year 2020/21 starting 29 March 2020 , and developments in its polymer banknote strategy . The Company has seen positive trading in this financial year , with good progress on the implementation of its Turnaround Plan . As a result , the Board's expectations for adjusted operating profit for the financial year 2020/21 are in the range of £ 36 million to £ 37 million , compared with current market expectations of approximately £ 34 million . ( 1 ) The Board is confident of these expectations , absent any significant unforeseen COVID - 19 related event . The Company remains diligent on its COVID - 19 safety measures and has year - to - date effectively mitigated the challenges of the pandemic . The improved expectations are largely driven by a strong Currency division performance . De La Rue recognises that the pandemic is causing some delays in securing new government revenue solutions contracts with overseas governments by its Authentication division , due to disruption in procurement processes . De La Rue also announces that it has decided on a UK location for the expansion of manufacturing capacity for its SAFEGUARD® polymer substrate . The additional production line will be located in a recently acquired building adjacent to its existing premises in Westhoughton , near Bolton , creating operational efficiencies . The Company expects the new line to be fully operational before the end of calendar year 2021 and that it will more than double current polymer production capacity . De La Rue plans to recruit up to an additional 70 people during the next two and a half years as part of this investment . As a result of the continued positive momentum of customers switching to De La Rue's SAFEGUARD® polymer substrate , and to create more possibilities in relation to future expansion , the Company now plans to spend approximately £ 20 million on its polymer strategy , an increase on the approximately £ 15 million previously indicated . Total aggregate 3 - year investment for the Turnaround Plan remains unchanged at £ 79.8 million . Clive Vacher , CEO of De La Rue , said , " I am pleased that we are able to report increased adjusted operating profit expectations for the year , due to positive trading . We remain focused on delivering shareholder value through the successful execution of our Turnaround Plan . " In addition , I am delighted to announce further investment in manufacturing and job creation in the North West of the UK , as we continue to increase our polymer market share globally . The Currency team has done a remarkable job in bringing De La Rue's SAFEGUARD® polymer substrate to a position of industry leadership . " It is a fitting endorsement of the technical and operational capabilities of our Westhoughton site , that we have made the decision to concentrate our polymer substrate manufacturing into this Centre of Excellence . " De La Rue expects to announce its results for the full year ended 27 March 2021 on 26 May 2021 . De La Rue plc's LEI code is 213800DH741LZWIJXP78 . ( 1 ) . Market expectations are based on the average of published notes from Investec and Numis Securities . Enquiries : De La Rue plc Clive Vacher +44 ( 0 ) 7387 122645 Chief Executive Officer Rob Harding Matthew Rose Brunswick Group LLP Stuart Donnelly / Imran Jina Chief Financial Officer Director of Tax , Treasury and Investor Relations +44 ( 0 ) 207 404 5959 Cautionary note regarding forward - looking statements This announcement includes statements that are , or may be deemed to be , " forward - looking statements " . These forward - looking statements can be identified by the use of forward - looking terminology , including the terms " believes " , " estimates " , " anticipates " , " expects " , " intends " , " plans " , " may " , " will " , " could " , " shall " , " risk " , " aims " , " predicts " , " continues " , " assumes " , " positioned " or " should " or , in each case , their negative or other variations or comparable terminology . These forward - looking statements include all matters that are not historical facts . They appear in a number of places throughout this announcement and include statements regarding the intentions , beliefs or current expectations of the directors , De La Rue or the Group concerning , amongst other things , the results of operations , financial condition , liquidity , prospects , growth and strategies of De La Rue and the industry in which it operates . By their nature , forward - looking statements involve known and unknown risks , uncertainties , assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company . Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation or assurance that trends or activities underlying past performance will continue in the future . Accordingly , investors or potential investors should not place undue reliance on these forward - looking statements . The Group's actual results of operations , financial condition , liquidity and the development of the industry in which it operates may differ materially from the impression created by the forward - looking statements contained in this announcement . In addition , even if the results of operations , financial condition and liquidity of the Group and the development of the industry in which it operates , are consistent with the forward - looking statements contained in this announcement , those results or developments may not be indicative of results or developments in subsequent periods . Other than in accordance with its legal or regulatory obligations , De La Rue does not undertake any obligation to update these forward - looking statements , which speak only as at the date of this announcement , and will not publicly release any revisions that may be made to these forward - looking statements , which may result from events or circumstances arising after the date of this announcement . Page 1 of 2