De La Rue expects to miss profit growth target

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Banknote printer De La Rue today warned that its full-year profits will fall short of its ambitions amid “difficult” market conditions.

The group, which has designed or produced more than 150 national currencies, said its operating profits for the six months to 28 September will be up 18 per cent to about £39 million, as cost cuts help to overcome a marginal drop in revenues.

De La Rue also said that its annual operating profits should grow more than 40 per cent year-on-year to about £90m. However, this will fall short of the £100m target set by the group in a three-year improvement plan.

In today’s trading update, the firm said banknote print volumes fell 10 per cent in the first half to 2.6 billion notes, while overcapacity in the banknote paper market is putting pressure on prices.