De La Rue hit by declining use of cash
Banknote printer De La Rue said it expects full-year profit to be below market expectations as the decline in the use of cash is causing significant uncertainty.
There has been a sharp fall in orders from central banks as more people shift to digital transactions.
The 200-year-old company said demand for cash was at its lowest in 20 years and it is in talks with its lenders to seek an amendment to its banking terms due to the worsening outlook.
It has asked its pension trustee to defer its next deficit contribution.
The company expects 2023 adjusted operating profit to be a mid-single digit percentage below market expectations. It is its third profit warning since January 2022
For its fiscal 2024, adjusted operating profit its expected to be in the low £20 million range, it said.
“However, there are encouraging signs that the market is recovering, with a significant number of new tenders actively underway but the timing of this recovery remains uncertain,” it added.
De La Rue’s share price has taken a hit from this turmoil. The shares plunged by more than 24% today to a record low of 33.35p. The stock has dropped by more than 65% from its all-time high.