31st Jan 2014 08:43
LONDON (Alliance News) - Banknote printer De La Rue PLC Friday reaffirmed its expectations for full-year operating profit, but cautioned that competition in banknote printing has been pushing prices down.
In a statement, the FTSE 250 company said it expects full-year operating profit to be about GBP90 million, as previously announced.
It said it expects the Currency Division to report sales of about 6.6 billion banknotes and about 10,000 tonnes of banknote paper for the full-year, but noted "overcapacity in the banknote paper market".
Meanwhile, the Solutions Division, where it provides passports and identity cards, amongst other products and services, is trading "satisfactorily", according to De La Rue.
It said the part of its business within Solution that produces identity documents had traded strongly, but the cash processing business's performance remains disappointing, even if "good progress" has been made on breaking even through cost cutting in 2014/15.
"The board expects the group to enter the 2014/15 financial year with a good order book," De La Rue added in the statement.
De La Rue shares were Friday quoted at 788.00 pence, down 6.50p or 0.8%.
By Samuel Agini; [email protected]; @samuelagini
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