Passport target for printers De La Rue

Nov 25 2009 by Karen Dent, The Journal

BANK note printer De La Rue is chasing more passport contracts, which could signal a further boost for its Tyneside factory.

The company, which reported a 6% fall in first-half profits to £44.2m after being hit by one-off charges, won the £400m 10-year Government contract to produce UK biometric passports earlier this year.

It is now seeking more of the same, which could create further jobs at its biggest plant, which is in Team Valley, Gateshead and employs more than 180 workers.

Chief executive James Hussey said: “The UK passport deal builds our credibility, giving us a customer base in the first world, where we have traditionally operated in the second and third worlds. It potentially brings us into a new space.” The company said that, due to confidentiality issues, it could not confirm how many additional jobs the UK passport deal would bring to Gateshead, although the figure is believed to be around 80.

A spokeswoman said that De La Rue had plants around the world which were capable of producing passports, and any new contract wins would be awarded to factories depending where they were and what the product required is.

She added: “Passports are one of our main product streams and we are constantly in contract negotiations.”

The group reported a 3.1% jump in revenue to £252.2m for the six months to September 26 and a 17.2% increase in operating profits, before exceptional items, of £51m.

The company is currently restructuring its cash processing wing to cut costs.

De La Rue is the world’s biggest commercial banknote printer and produces more than 150 currencies. The company is confident demand for its bank notes will continue to rise as countries tighten up against counterfeiters.

Mr Hussey said: “The underlying requirement for banknotes is as strong today as it was three years ago, so I don’t see any indication that there is any weakness in volume.”

De La Rue also produces visas, ID cards, driving licences, cash sorting equipment and employs more than 4,000 people globally.

Chairman Nicholas Brookes said: “The group has delivered a strong performance, reflecting the successful execution of our focused strategy, our ongoing drive for productivity improvements and the resilience of our key markets.

“The signing of the 10-year UK passport contract during the period demonstrates De La Rue’s continuing capability for generating long-term profitable growth.”