De La Rue shares drop 10% on falling profits
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Loading... - J. OLIVEIRA
- 27 May 2020
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Shares in banknote printer De La Rue fell 10% in early trading after the firm posted lower full-year profits and a cut in the dividend from 42p to 25p.
It warned last year that profits would be £20m lower than in the year before.
Operating profits were down 22% at £69.5m, in line with that guidance, but shareholders were disappointed to see the dividend payout had also been cut.
De La Rue, which is more than 200 years old, makes notes for 150 countries including the UK.
The company complained last year that its latest contract from the Bank of England was less favourable and that other countries would be encouraged to improve their contracts when renegotiating.
It has been battling rising costs, largely the price of paper, for a number of years.
De La Rue, which has customers in 65 countries, also makes biometric passports.
