De La Rue PLC (LSE:DLAR) shares fell 6.2% in early exchanges on Tuesday as it reported a drop in half-year profit although it backed full-year guidance.
The bank notes printer said in the six months ended 30 September 2023, authentication revenue rose 5.7% to £48.1 million from £45.5 million and currency revenue fell 2.6% to £113.4 million from £116.4 million.
Adjusted operating profit of £7.9 million, although below last year’s £9.3 million, was ahead of previous guidance of breakeven.
The firm’s pre-tax loss widened to £16.8 million from £15.9 million.
This underpins the board's reiteration of full-year guidance with adjusted operating profit expected in the early £20 million range with net debt in the mid-£90 million range.
Clive Vacher, CEO of De La Rue, said: “Authentication continues on its path to £100 million in revenue for the full financial year.
“We have secured a significant multi-year contract extension, and we are in the late stages of securing another contract extension in GRS.
“Our Australian passport programme continues apace and is a significant driver of growth this year.”
Net debt of £82 million was ahead of previous guidance of £100 million.