Commercial banknote printer De La Rue has reiterated that results for the current year are expected to be flat on 2011/12 after an 'in-line' performance in the third quarter.
The firm said on Friday that its Currency Division is expected to produce 6.4bn banknotes and around 9,000 tonnes of banknote paper in the financial year ending March 31st. The year before, print volumes were the same at 6.4bn, though paper volumes were much higher at 11,000.
De La Rue said that order intake has been "satisfactory" since the end of the first half (September 30th). However, on a positive note, while De La Rue said in November that it had experienced delays to a number of significant orders and these would not be received before the year-end, Friday's statement highlighted that "some" of these have now been collected.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"As anticipated the banknote paper market remains challenging, reflecting the introduction of additional capacity by other manufacturers, with continuing evidence of pricing pressure," the company said.
The company said it remains confident of delivering its "Improvement Plan" which is targeting operating profit of over £100m in the 2013/14 financial year. This compared with an operating profit of £63.1m in 2011/12.
Shares were up 2.0% at 920p by 08:05.
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
