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(Alliance News) - De La Rue PLC on Wednesday said it has been hurt by demand for banknotes sinking to a more than 20-year low.
Shares were down 23% at 38.52 pence each on Wednesday morning in London.
The Basingstoke, England-based security printed products maker said it expects adjusted operating profit for the year ended March 25 to be "a mid-single digit percentage below market expectations". In financial 2022, adjusted operating profit was GBP36.4 million.
The company said it is seeing signs of recovery, with a "significant number of new tenders actively underway", though the pace of a bounce back is uncertain.
More positively, it expects revenue in its Authentication to top GBP100 million for the first time in the new financial year ending on March 30 in 2024.
De La Rue added: "The company is in discussions with its lending banks in relation to seeking an amendment to its banking covenants, reflecting the revised outlook and also reflecting the increase in the company's funding costs resulting from higher Bank of England base rates."
For financial 2024, the company expects adjusted operating profit to be in the low GBP20 million range.
De La Rue will release its results on May 31.
By Xindi Wei, Alliance News reporter
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