By Adria Calatayud
De La Rue PLC said Wednesday that it swung to pretax profit for the first half of fiscal 2021, as the company started to reap the benefits of its turnaround plan.
The British passport and banknote printer made a pretax profit for the half year ended Sept. 26 of 2.5 million pounds ($3.3 million) compared with a loss of GBP12.1 million for the same period last year.
Adjusted operating profit for the first half soared to GBP15.3 million from GBP2.2 million a year before.
Revenue for the half year fell to GBP179.7 million from GBP232.3 million. The company attributed the revenue decline to lower revenue from its identity division as a result of the sale its International Identity Solutions business in October 2019 and the runoff of a U.K. passport contract.
De La Rue said it is on track to achieve GBP23 million of savings in fiscal 2021.
"Trading for the financial year 2020-21 has been positive, with the outlook for revenue, adjusted operating profit and net debt for the full year in line with the board's expectations," Chief Executive Clive Vacher said.