De La Rue Boosted by Recovering Demand

De La Rue appears to be enjoying a rebound following multiple new contract wins and growing demand for banknotes.

In its interim results for 2023/24, it has reported adjusted operating profit of £7.9 million, exceeding previous guidance of break-even but £1.4 million below last year’s first half of £9.3 million. Its IFRS operating loss was significantly reduced, from £12.6 million in the first half of last year to £3.4 million this first half. Currency revenue of £113.4 million was 2.6% lower, but Authentication Revenue increased by 5.7% to £48.1 million.

However, the company’s currency order book increased by over 100% since September 2023 and its net debt of £82 million was £18 million lower than the October 2023 trading statement guidance of £100 million. Operating cash flow of £15.4 million exceeded the £2.8 million outflow of the first half of last year by £18.2 million.