After trading conditions went really low, the banknote printer of the Bank of England issued a profits warning.
The company printing banknotes for Bank of England called De La Rue has made an announcement that there’s markets shift that’s why it’s forced to make a few revisions on its profits for 2014. De La Rue is now expecting a total of around £20 million less than what’s reported previously. The share prices of the company it went low by 22% at the start of the trading the day when the profit warning was announced.
Bank of England’s banknotes printer is certified to print money, but earning profits and revenues is recently a growing problem of the nation. Two years ago, the De La Rue made a declaration that its annual profits have been split fifty-fifty as it spent a lot in the reforms because of the production issues that it had the year before.
According to Philip Rogerson, the chairman of De La Rue, the company remains profitable, cash generative and strong even with the disappointing trading update. He said that the banknote printer will continue to reach its goals of having efficiency gains and that it will also still make investments in the future in the field of research and development.
It looks like the company would not be able to turn around its fortunes right away and will still struggle to generate profits but what’s important here is that De La Rue isn’t giving up soon.
Share this:
