Shares in banknote printer De La Rue jumped five per cent in early deals this morning after the company responsible for printing the UK’s money edged closer to the sale of some or all of its business.
It has also delayed its full year results to July to give potential bidders more time to make an offer.
De La Rue kicked off a strategic review of its divisions last December when it said a “number of parties” had made proposals or expressed interest in buying parts of the business.
It did not name the potential suitors.
Clive Whiley, De La Rue’s chairman, commented: “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.”
Losses at the firm widened its last earnings report, in which it posted a pre-tax loss of £16.8m in the six months to September 30 2023, compared to £15.9m in the same period last year.
Any deal would help reduce its leverage and create “greater financial flexibility in the funding structure”, the company, which is based in Basingstoke, said.
The update follows the news that investor Richard Griffiths—known as the ‘Welsh Wizard’ in City circles—had increased his stake in the company from 10.19 per cent to 11.44 per cent.
Alongside the delay, De La Rue also announced an extension to its contracts with two of its existing government customers at the authentication business for three and five years.
The renewals are expected to be worth £150m. Following these deals, the business said it has booked contracts with “anticipated future revenues of over £350m, equivalent to approximately three and a half times full year 2024 total revenues.”
De La Rue added that its currency order book stood at £239m at the end of March, compared to £220m at the end of December 2023.