23rd Nov 2022 10:40
(Alliance News) - De La Rue PLC on Wednesday said it swung to a pretax loss in a "challenging" half year, largely due to a decline in currency revenue.
The Hampshire-based banknote printing company said its pretax loss in the six months that ended September 24 was GBP15.9 million, swinging from a profit of GBP10.9 million a year prior.
Revenue fell by 8.3% to GBP164.3 million from GBP179.2 million, led by a 12% currency revenue decline to GBP116.4 million from GBP132.7 million due to a subdued market, said De La Rue.
It added its first half adjusted operating profit was GBP9.3 million, down 47% from GBP17.4 million a year prior but in line with its July guidance.
De La Rue now expects its financial 2023 adjusted operating profit to be between GBP30 million and GBP33 million, which is below the GBP36 million analyst consensus.
It also predicted to be free-cashflow generating after pension payments from its financial 2024 onwards.
De La Rue said it was nearing the end of its 3-year turnaround plan, claiming it saved the company, significantly increased its resilience. Further efficiency actions are expected to save around GBP12 million per year by the end of financial year 2024, it added.
"We have turned a loss-making currency business into one that is profitable and increasingly stable. Our targeted investment programmes are proceeding well, with the second polymer [banknote] line completed and operational within budget, and the near-doubling of our Malta factory proceeding at pace," said Chief Executive Officer Clive Vacher.
Shares in De La Rue were down 17% to 82.90 pence in London on Wednesday morning.
By Greg Rosenvinge; [email protected]
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