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De La Rue shares fall as warns on inflation hit to annual profit

25th May 2022 10:31

(Alliance News) - De La Rue PLC on Wednesday said it more than doubled its annual profit but warned growth will grind to a halt in the new financial year.

Pretax profit for the financial year ended March 26 surged to GBP24.2 million from GBP9.9 million a year ago.

Revenue, however, fell to GBP375.1 million from GBP397.4 million.

Exceptional charges decreased to GBP5.7 million from GBP22.6 million, the Basingstoke, England-based security printed products maker said.

Adjusted operating profit declined 4.5% to GBP36.4 million from GBP38.1 million.

For financial year 2023, De La Rue expects its adjusted operating profit to be broadly flat year-on-year, as it experiences inflationary headwinds.

"In particular, supply chain inflation is anticipated to increase group operating costs by an additional net of GBP5 million this financial year, and there is a possibility that disruption may affect revenue," it added.

Chief Executive Officer Clive Vacher added: "While this means that our progress is slowed, we remain strongly on the right path strategically and operationally to create a strong, cash-generative company in the medium term."

De La Rue shares were 7.8% lower at 102.36 pence each in London on Wednesday morning.

By Tom Budszus; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.


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