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The Markets
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Financial Services

De La Rue shares plunge as it issues second profit warning of the year

The company said full-year adjusted operating profit will be “significantly lower” than market expectations

De La Rue PLC (LON:DLAR) shares plunged on Wednesday after it once again warned investors that its full-year adjusted operating profit will be “significantly lower” than market expectations.

The security printing company, which prints all the Bank of England's banknotes, also said in a very brief trading update that adjusted operating profits for the half-year ended 28 September will be “low-to-mid single-digit millions” and its management, led by the new chief executive, is conducting a “detailed” business review.

READ: De La Rue appoints turnaround expert as CEO

Business turnaround expert Clive Vacher was appointed earlier this month to replace Martin Sutherland as head of the firm, which announced in May a three-year cost reduction programme to offset the impact of losing a key contract with the British government to provide UK passports.

Back in May the company announced former that Sutherland would step down amid urgent plans to restructure, after issuing a profit warning which halved its share price in the year-to-date.

In early trading on Wednesday, De la Rue shares dropped 22% to 145.65p.

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