Plastic-notes maker De La Rue eyes a mint from weaker pound

PLASTIC fivers may have made the pounds in your pocket stronger but the company behind them expects to benefit from sterling’s weakness in the currency markets.

Money printer De La Rue, which makes the polymer £5 note for the Bank of England, said the slump in sterling will give it a headstart over rivals when it bids for new contracts.

“It makes us more competitive in the market,” chief executive Martin Sutherland said.

About 60% of the company’s costs are in sterling but the 195-year old company makes 80% of sales in non-sterling. That should make new contracts more profitable for the group from March 2017 onwards.

De La Rue hedges its currency risks annually, meaning it did not see the benefits of the weak pound on contracts this year.

The company is currently printing a £10 polymer, which launches next year. It will also bid on the £20 note contract.

Revenue was £189.5 million for the six months ending September, flat on last year despite the loss of a £30 million contract. Underlying pre-tax profit was up 2%.