De La Rue sees positive turn as profit forecast rises for banknote printing business
In an unusual update, De La Rue has informed shareholders that profits for the first half of the financial year are expected to exceed expectations. The London-listed banknote printer attributes this performance to a resurgence in currency demand and strength in its authentication business. This news comes after the company previously anticipated adjusted operating profit to break even for the same period, following years of annual losses.
Despite facing challenges such as subdued paper currency demand and operational obstacles, De La Rue is confident in its full-year adjusted operating profit forecast, projected to be in the low £20 million range. Additionally, the company expects a marginal decline in net debt, having earlier predicted it would rise to approximately £100 million for both the half and full year.
Back in June, De La Rue reported a significant loss for the year ending March, signaling a decline in its money printing business. However, the banknote maker revealed promising signs of recovery, leading to increased investor confidence. With its shares up by 4.13% in afternoon trading, De La Rue appears to be on a positive trajectory.
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