Shares rose 16p to 261p following the positive update, and went up another 3p on Friday (18 July).

Although they dropped back to 261p on Monday (21 July), there were reports that they had briefly peaked at 273p amid talk that private equity groups were taking a look at the group. Head of corporate affairs Mark Fearon would not comment on market speculation.

At the AGM, chairman Sir Brandon Gough said he viewed the groups prospects for this year with more confidence. De La Rues trading performance in Q1 has been mostly ahead of our expectations. This reflects earlier benefit from cost control programmes announced in 2002/2003.

Fearon told PrintWeek the AGM had been constructive. Although three shareholders had asked Gough questions relating to recent news reports, chief executive Ian Muchs mooted exit was not discussed, he said.

However, a Financial Times report said investors had asked for clarification of Muchs intentions to leave this year rather than in 2004, when he reaches 60.

Much refused to comment and Gough dismissed it as speculative comment in the press.

Story by Rachel Barnes