By Scott Kanowsky
Investing.com -- De La Rue PLC (LON:DLAR) shares shed nearly a fourth of their value on Wednesday after the banknote printing company lowered its income guidance due to a slump in demand for paper currency.
In a statement, the U.K.-based firm said it expects adjusted operating profit in 2024 fiscal year to be in the "low £20 million range," down from its prior unadjusted outlook of £40.1M (£1 = $1.2407).
Demand for banknotes has slipped to its lowest level in over two decades, De La Rue flagged, resulting in a weak order book ahead of its 2024 financial period.
"The downturn in Currency, impacting both De La Rue and the wider industry, is causing a significant degree of uncertainty," De La Rue said.
The business added that it is in discussions with its lending banks regarding a change to its banking covenants. It has also asked the trustees of its defined benefit pension scheme to sign off on a deferral of deficit repair contributions worth £18.75M.