On Thursday, British banknote printer De La Rue (DLAR.L) maintained its 2017 adjusted operating profit target, supported by bid activity rebound and robust authentication demand.
The London-listed firm forecasted full-year adjusted operating profit in the lower band of their range. It claimed there was no “material uncertainty” in its capacity to continue as a going concern.
In recent years, De La Rue has suffered from profit warnings, operational issues in several important countries, and a drop in cash demand as governments and central banks worldwide delayed new orders.
The company’s authentication division designs and creates safe documents and security features like holograms to authenticate goods, and the growing focus on polymer notes provide optimism.
“Following a significant downturn in currency demand over the past 18 months, we have witnessed encouraging signs of recovery with strong bid activity, a positive win rate, and the significant majority of FY24 banknote print volume already contracted,” said CEO Clive Vacher.
Due to currency recovery time, the first-half adjusted operating profit may break even.
27.8 million pounds was adjusted operating profit for the year ended March 25. Annual revenue declined to 349.7 million pounds from 375.1 million pounds.
