De La Rue’s fortunes improve as banknote printer raises profit forecast
- The firm said it also expects net debt to decline marginally.
De La Rue expects profits for the first half of its financial year to “marginally” beat expectations, the company told shareholders in a rare positive update on Friday.
The banknote printer attributed its better-than-expected performance in the six months to September 30 to a recovery in foreign exchange demand and the strength of its authentication business.
The London-listed company had previously said it expected adjusted operating profit to reach “breakeven” during the first half of the year to September 30.
The London-listed company had previously said it expected adjusted operating profit to “virtually break even” for the first half of the year to September 30, after suffering annual losses in recent years.
De La Rue, which has struggled in recent years due to weakening demand for paper currency and a series of operating headwinds, reiterated its full-year adjusted operating profit forecast in the low £20m range.
The company also expects net debt to decline marginally, having previously said net debt would rise to around £100m for both the half-year and full year.
In June, the group revealed it had fallen to a full-year loss, but the banknote maker pointed to “encouraging signs of recovery” in its key money-printing business.
The 210-year-old company reported pre-tax losses of £29.6m for the year to the end of March, compared with £24.2m profits in 2022, while revenue fell 6 .8 per cent to £349.7 million.
La Rue Actions They rose 4.13 per cent to 63.00 pence in afternoon trading on Friday.
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