UPDATE 1-Ticket maker De La Rue optimistic about profits, plans more spending on polymers
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Jan. 28 (Reuters) – Ticket printer De La Rue said on Thursday annual profit would exceed market expectations and set aside five million pounds ($ 6.83 million) more than expected for its strategy polymer as part of an ongoing recovery plan.
The company, which prints Kenyan shilling currency into Sri Lankan rupees, said the total investment remains at Â£ 79.8million for the program which calls for more focus on the polymer used in making banknotes. bank with security features not available in paper notes.
Shares of the world’s largest commercial banknote printer and passport maker rose nearly 3% against the UK small-cap index at the start of the session.
The company expects adjusted operating profit for the year ending March 31 to be between Â£ 36million and Â£ 37million, compared to analysts’ consensus of Â£ 34million, despite the loss of the manufacturing contract for post-Brexit British passports.
After a series of profit warnings in 2019, the latest update is another sign of improving business for De La Rue, which last year raised Â£ 100million in new equity and cut jobs for recover from debt problems.
Its currency division performed strongly during the pandemic, forcing central banks to print trillions of dollars in banknotes to restart their crisis-hit economies.
He also highlighted a positive dynamic among customers switching to his polymer banknotes. ($ 1 = 0.7326 pounds) (Reporting by Muvija M and Chris Peters in Bengaluru; Editing by Arun Koyyur)