Nov 23 (Reuters) – Banknote printer De La Rue Plc DLAR.L warned on Wednesday that annual profit would miss market estimates and reported a plunge in half-year results due to subdued currency markets as governments used up the vast stocks built up during COVID-19.
The London-listed firm said adjusted operating profit is expected to come in between 30 million pounds and 33 million pounds ($35.7 million to $39.3 million) in the year ending March 2023.
That is below the company-provided analysts’ expectations of 36 million pounds.
“Due to the unpredictability of the external environment, particularly when it comes to timing of customer orders, the potential range of outcomes for adjusted operating profit this year is larger than normal,” the company said.
De La Rue, under top boss Clive Vacher, has been turning around its business, including by investing in polymer notes and cutting costs. The company holds the contract to design and make the Bank of England’s new polymer notes.
Britain will gradually issue coins, banknotes and stamps bearing the image of King Charles and the makers of its currency and stamps have said they would begin the slow process of switching from using an image of the late Queen Elizabeth. The new currency is expected to enter circulation by mid-2024.
De La Rue reported a near 47% drop in adjusted operating profit to 9.3 million pounds for the six months ended September. ($1 = 0.8405 pounds)
(Reporting by Amna Karimi and Yadarisa Shabong in Bengaluru; Editing by Savio D’Souza)