Yahoo Finance Britain’s banknote printer in break-up talks as it delays results
The UK’s banknote maker has revealed it is in talks to break up the business as it delayed its results following a strategic review.
De La Rue, which prints notes for the Bank of England and other central banks around the world, said it had spoken to a “number of parties who have made proposals” for both its currency and authentication operations, two of its leading divisions.
It comes after the board carried out a strategic review in an effort to boost the group’s performance.
Clive Whiley, chairman of De La Rue, said: “Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group’s divisions.
“The board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full-year results in July.”
De La Rue’s annual results had previously been scheduled for next month.
The Basingstoke-based company, which was founded in 1821, said there was no change to its previous guidance of operating profit, which is expected to be in the low £20m range.
Net debt is forecast to be around £90m, while the authentication division is expected to post revenues of more than £100m for the year.
De La Rue said it had secured extensions to two existing government contracts, for three and five years respectively, to provide a digital tax stamp to track and trace excisable goods such as alcohol and tobacco.
The company said its authentication division now holds contracts with future revenues estimated at more than £350m, equivalent to roughly three and a half times overall revenues for the latest financial year.
Bosses added that the order book for its currency business increased to £239m at the end of March, up from £137m at the end of the previous financial year.
De La Rue said its review had prompted it to evaluate a potential sale of both the whole group and its individual divisions, though it warned there was no certainty a deal would go ahead.
Chief executive Clive Vacher said: “We are delighted to extend our relationship with these high-profile customers within our authentication division.
“This, alongside other recent renewals and the expanding currency order book, demonstrates further progress in the development of De La Rue which will help to underpin our performance in FY25.”
