Following last week’s European contracts, the award of a sizeable five-year contract for tax stamps for the Kingdom of Saudi Arabia (KSA) further underpins management’s recent assertion that Product Authentication & Traceability (PA&T) would double its sales over the next three years. In addition, we visited the polymer banknote substrate operation near Bolton yesterday that showcased De La Rue’s strong position to deliver its increasing share in this fast-growing segment of the market. Both areas highlight the underlying progress being made, which is being masked by the upcoming ending of UK passport production. We do not believe the underlying growth is reflected in the current rating.
