De la Rue PLC (LON:DLAR), the banknote printer, has asked shareholders to stump up £100mln to help it through the coronavirus crisis and implement a recovery plan.
The fundraise came as the group confirmed plans to close its banknote printing operation in Gateshead with the potential loss of hundreds of jobs.
The passport business at the site will also stop as the business is transferred to a new supplier.
In the placing statement, Clive Vacher, De La Rue's chief executive said: "Earlier this year we announced a three-year Turnaround Plan to restore the company's financial performance and return it to growth. With this capital, we will be able to strengthen our balance sheet, reduce our costs and invest in the exciting growth opportunities we see in Authentication, polymer banknote production and security features.”
In a separate final results statement, De la Rue also reported sharply lower underlying operating profits of £23.7mln in the year to March 31, 2020 (2019: £60.1mln), with revenues 17% lower at £427mln.
The company said its aim is to be generating positive free cash flow capable of supporting dividends by the end of the 2022/2023 financial year.
De la Rue is raising the £100mln through a £50mln firm placing at 110p share and £50mln via a placing and open offer at the same price.