Banknote printer De La Rue has said it believes takeover talks will reach a “successful conclusion in the coming months”, as it reported a dent in full year revenue.
The London-listed firm, which as well as printing notes for the Bank of England makes passports and brand protection labels, was revealed in May to be in discussions with “a number of parties” that had made proposals.
De La Rue confirmed those discussions were progressing, with its chairman, Clive Whiley, confirming that that more potential suitors had entered the fray.
Clive Vacher, De La Rue’s chief executive, said the firm’s “strategic priorities” were “progressing well and that he was “confident that discussions will reach a successful conclusion in the coming months”.
The update came alongside the printer’s full year results, which had already been delayed in order for the firm to find a potential suitor. It posted sliding earnings as forecast due to what it described as “substantial trading difficulties”. Revenue dropped 11.3 per cent from £350m to £310m. Its currency arm found the year particularly tough, with revenue in the division falling 19 per cent.
But its authentication division bucked the downward trend, growing by 12.5 per cent in the year to March 25, surpassing the £100m target the company had set for it.
Its adjusted operating profit dipped in line with guidance to £21m.
Vacher said: “De La Rue’s businesses successfully navigated substantial trading challenges faced in the last financial year and met all the expectations that were set.
“Both divisions enter the current financial year well positioned to take advantage of the increasing opportunities available to them. The recovery in the Currency market that we noted at the end of 2023 has continued into 2024, and the division now has a strong order book that has been secured by an excellent win rate.
The potential suitors have still not been named.