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anknote maker De La Rue said there have been “encouraging signs of recovery” in its currency business after plummeting demand for fresh cash saw it slump into the red.
The group – which prints banknotes for the Bank of England and other central banks across the globe – reported pre-tax losses of £29.6 million for the year to March 25 compared with profits of £24.2 million the previous year.
Underlying operating profits tumbled to £27.8 million from £36.4 million in 2021-22.
De La Rue has repeatedly issued profit warnings over the past year, revealing in April that demand for banknotes had fallen to its weakest level for 20 years.
This came as governments instead looked to use up the stocks of banknotes built up during the pandemic, while countries have also been facing pressure on public finances caused by the cost-of-living crisis and inflation woes.
It also said at the time that it was in talks with its lenders over banking agreements.
There is now no ‘material uncertainty’ with respect to De La Rue’s continuation as a going concern in the 2022-23 full-year accounts. This gives us a stable platform for future trading
Chief executive Clive Vacher admitted it had been a “challenging year” for the company.
But the group said actions taken in recent months have played a part in “stabilising” the firm and said it is on track with expectations to make underlying earnings “in the low £20 million range” over 2023-24, although it is set to remain broadly break-even in the first half.
De La Rue added that doubts over its future have been removed, confirming that there is no “material uncertainty” over its ability to continue as a going concern in the latest set of accounts.
Mr Vacher said: “Following a significant downturn in currency demand over the past 18 months, we have witnessed encouraging signs of recovery.
“The actions we have taken over the past few months have built on the essential operational improvements made in the last three years and played a vital role in stabilising the company.
“These include renegotiating terms with our lenders, leading to covenant relaxation, and agreeing a substantial deferral to our pension deficit repair contributions.
“Importantly, there is now no ‘material uncertainty’ with respect to De La Rue’s continuation as a going concern in the 2022-23 full-year accounts. This gives us a stable platform for future trading.”
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