De La Rue fortunes improve as banknote printer ups profit forecast
- The firm said it also expects net debt to marginally decline
De La Rue expects profits for the first half of its financial year to be ‘marginally’ ahead of expectations, the firm told shareholders in a rare positive update on Friday.
The banknote printer attributed its better-than-expected performance in the six months to 30 September to a recovery in currency demand and strength in its authentication business.
The London-listed company had earlier said it expected adjusted operating profit to ‘broadly break even’ for the first half of the year to 30 September
The London-listed company had earlier said it expected adjusted operating profit to ‘broadly break even’ for the first half of the year to 30 September, having suffered annual losses in recent years.
De La Rue, which has struggled in recent years due to subdued paper currency demand and a number of operational hurdles, reiterated its full-year adjusted operating profit forecast to be in the low £20million range.
The company also expects net debt to to marginally decline, having earlier said that net debt would rise to around £100million for both half and full year
In June, the group revealed that it had slumped to a full-year loss but the banknote maker flagged ‘encouraging signs of recovery’ at its key money printing business.
The 210-year-old company reported pre-tax losses of £29.6million for the year to the end of March, compared to £24.2million profit in 2022, while revenues fell 6.8 per cent to £349.7million.
De La Rue shares were up 4.13 per cent to 63.00p in afternoon trading on Friday.
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