- De La Rue said turnover fell to £145m in the six months to 28 September
- The group has agreed to sell its authentication arm to Crane NXT for £300m
Financial writer De La Rue said sales were lower in the first half after its premium business was hit by the delivery season.
The Hampshire group, whose clients include the Bank of England, said its turnover fell from 10.2 to £ 145.1 million in the six months ending on 28 September.
Revenue rose by 4.4 per cent to £50.2million in its warranty arm, which De La Rue has agreed to the sale to industrial technology company Crane NXT for £300million.
However, its revenue division saw sales fall by 16.3 per cent to £194.9 million as some deliveries moved into the second half of the financial year.
Adjusted operating profit beat expectations, falling by 7.6 per cent to £7.3 million, while special charges helped its pre-tax losses more than halve to £6.5 million.
Since then, De La Rue’s finance business has expanded its order book to a five-year high of £338million thanks to a number of contract wins, including some polymer-based bank loans.
Weaker performance: Financial writer De La Rue reported lower first-half sales on Thursday
As a result, the company has reiterated its guidance for adjusted operating profit to reach ‘mid to high £20million’ this financial year.
Clive Vacher, CEO of De La Rue, said: ‘The new orders we have received in recent months are beginning to translate into increased revenue as we move into the next financial year. and support our growth prospects.
‘With these strong foundations, our premium business is now well-positioned to take advantage of an improving market and significant growth in performance in 2025 and beyond.’
De Le Rue plans to become a bank design and writing firm only when it finalizes the sale of its authentication business, which is expected to happen in the first half of 2025.
The group intends to use the proceeds from the sale to pay down large debt and reduce pension plan liabilities.
Last year, De La Rue was forced to delay the payment of £20million in pension contributions after it was warned that lower global demand for securities was too unsustainable.
More than 200 years ago, the company printed banknotes for half of the world’s central banks, such as the Bank of England.
Dan Coatsworth, investment analyst at AJ Bell, said: ‘There is a lot of pressure on the current management team to demonstrate that the business is viable despite the structural problems it faces.
‘Buying authentication gives the business a profitable investment and breathing space.’
De La Rue shares they were down 5 per cent to 104p on Thursday morning, although they are still up 42 per cent over the past year.
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