Bank note printer De La Rue has seen half-year earnings slide as its performance was dragged down by its currency arm and the timing of contracts.
The group reported a 7.6% drop in underlying earnings to £7.3 million for the six months to September 30 as revenues fell 10.2%.
It saw underlying earnings in the sole remaining currency division fall 21% to £1.1 million in the first half as it said some contract deliveries had been shifted into the second half.
Revenues in the division tumbled 16.3% in the first half.
Shares in De La Rue were 6% lower in Thursday morning trading.
The 211-year-old group agreed the sale of its authentication arm to US-based firm Crane NXT in October in a deal worth £300 million.
The move sparked the break-up of the business, which has been struggling with a downturn in demand for cash since the pandemic, while in July it cautioned over its ability to continue as a going concern due to the payment of a loan due in July next year.
The material new orders that we have won in recent months will begin to convert into increased revenue as we move into the next financial year and solidly underpin our growth expectations
The deal with Crane NXT will allow it to repay the loan in full, while also helping reduce the funding deficit on its former defined benefit pension scheme, according to De La Rue.
De La Rue also remains in talks with parties over the possible sale of its currency division.
In its half-year results, the group insisted its currency business had a brighter outlook thanks to recent contract wins, with its order book standing at £251.7 million at the end of September, up from £239.2 million as at March 30.
It said: “The deeper order book in currency is beginning to translate into higher production volumes and revenue, sufficient to bring currency revenue for the full year back in line with 2023-24 levels.”
The group said it remained on track for full-year underlying earnings of “mid to high £20 millions”.
On a statutory basis, the group saw interim pre-tax losses narrow to £6.5 million from £16.8 million a year earlier.
Clive Vacher, chief executive of De La Rue, said: “We have also built up the currency order book to the highest levels seen for at least the last five years.
“The material new orders that we have won in recent months will begin to convert into increased revenue as we move into the next financial year and solidly underpin our growth expectations.”
