British banknote printer De La Rue's half-year profit slips on currency division weakness (updated)
12/12/2024 07:31
(Adds background in paragraph 2, details in paragraphs 3-4)
Dec 12 (Reuters) - British banknote printer De La Rue
DLAR.L on Thursday posted a 7.6% fall in half-year operating
profit, hurt by persisting weakness in its currency business and
back-loaded contracts for the year.
De La Rue has been trying to recover from a downturn in cash
demand post-pandemic after banks stockpiled cash and
contact-less payments became a favourite among customers.
The over 200-year-old company, which works with governments,
central banks and commercial organisations in more than 140
countries, said that the group's performance will be second-half
weighted, with some contract deliveries within the Currency
division moving into the next six-month period.
While the company's order book showed promise with an
year-over-year increase, its sole remaining Currency division
revenue fell 16.3% in the first-half, with adjusted operating
profit down 21.4%.
The company, which sold its authentication business in
October, posted an adjusted operating profit of 7.3 million
pounds ($9.3 million) for the six months ended Sept. 30,
compared with last year's 7.9 million pounds.
($1 = 0.7828 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Sumana
Nandy)
((Yamini.Kalia@thomsonreuters.com;))