De La Rue boosts outlook for currency division
By Michele Maatouk
Date: Wednesday 05 Mar 2025
(Sharecast News) - Banknote printer De La Rue said on Wednesday that 2026 growth in the currency division is expected to be "significantly higher" than previous guidance as order intake remains strong.
In an update for the periods ending 29 March 2025 and 28 March 2026, the company said it had been a year of good progress, with activity levels continuing to build in the currency division, while the authentication business achieved a solid performance.
"Overall we are on track with FY25, reflecting the strong currency order book growth through the second half, and the necessary working capital investment to support this volume growth. This outcome is dependent on efficient production and timely delivery of completed product in the final weeks of this financial year," it said.
The order book for the currency unit stood at £347m at the end of January.
De La rue said the additional orders won so far in FY25 within currency, and improvements to the operational plan for FY26 give it "growing confidence" in the outlook for the currency segment.
"We now expect growth for the currency division in FY26 to be significantly higher than that guided at the time of announcement of our half year results," it said.
It also said that work on separation of the authentication division is well advanced and it's on track to complete the sale in the first half of calendar 2025,
De La Rue, which announced a formal sale process last month, said it remains in talks that may or may not result in possible cash offers and with various potential counterparties in relation to the currency division.
Chief executive Clive Vacher said: "The currency division is now benefitting from the success we have had in transforming the business over the last five years with a substantial upward increase in activity predicted by the growing order book.
"With sales for FY26 now largely contracted and the proposed sale of authentication proceeding as planned, we will be able to focus on delivering finished banknotes, polymer and security features to our currency customers efficiently and effectively.
"We expect FY26, our next financial year, to bring a significant escalation in the performance of our currency business."
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