(Reuters) -British banknote maker De La Rue on Tuesday kept its annual forecast unchanged and reported half-year profit in line with its expectations, helped by a recovery in demand for currency notes.
Demand for cash had slumped to a two-decade low earlier in the year, De La Rue said in April, as central banks and governments stock-piled huge amount of cash during the pandemic and digital banking and contact-less payment become more popular.
But the designer of currency notes, including the new King Charles banknotes, has seen demand recover with inflationary pressures driving banknote orders from some countries.
The over 200-year-old company, which works with governments, central banks and commercial organisations in more than 140 countries, reported an adjusted operating profit of 7.9 million pounds ($10.00 million) for the half-year period ended Sept. 24, compared with its forecast of being slightly ahead of break-even.
De La Rue still expects its full-year adjusted operating profit to be in the low 20-million-pound range.
The currency market was showing signs of continuing recovery, CEO Clive Vacher said.
“We have doubled the currency order book since September 2023 and are exhibiting a high win rate, with more opportunities in the pipeline.”
($1 = 0.7896 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)
