UK’s banknote printer De La Rue fears for its future

November 26, 2019 by No Comments


Five pound notesImage copyright

De La Rue, the company that prints the UK’s banknotes, has said there is a risk that the firm will collapse if its turnaround plan fails to work.

The announcement came as it suspended its dividend and reported a loss in the first half of its financial year.

De La Rue said its warning was based on a worst-case scenario.

However, it concluded that there was “a material uncertainty that casts significant doubt on the group’s ability to operate as a going concern”.

De La Rue has faced some big setbacks in the past two years, including the loss of the post-Brexit UK passport printing contract in March 2018.

In May last year, it had to write off £18m after Venezuela’s central bank failed to pay its bills.

De La Rue’s half-year adjusted operating profit fell to £2.2m, from £17m during the same period a year ago.