Business

Inflation in supply chains and profits at the Covid level in De La Rue

D

and La Rue The UK banknote maker has suffered from the continuing effects of the loss of the passport department, supply chain inflation and the effects of the pandemic as its annual profits remained with a similar outcome expected next year.

The company said it was working earnings of £ 36.4 million for the full year are slightly less than last year’s £ 38.1 million. Revenue rose 16.4% to £ 90.3 million.

De La Roux said the loss of a passport contract by Franco-Dutch company Gemalto in 2019 still affects business.

He also agreed to cut cash payments to the pension system by £ 57 million. However, the company said that retirement will not be affected, and a deal with trustees of the scheme will “strengthen” the rights of employees.

De La Rue said it has experienced additional economic hurdles since the end of the fiscal year and is now creating realistic expectations of how much it can mitigate them, and the company has informed investors in its Trade update back in January that it was affected by the lack of supply chain of chips and other raw materials.

Clive Wacher, CEO of De La Rue since 2019, said the company is cautious about forecasts and performance “likely to be equal” over the next 12 months.

“Like any company, I don’t know anyone who knows exactly what the world will be doing in the next 12 months, and so we are very careful. I am very comfortable with business development and we are moving towards becoming a company that will be able to generate very significant free cash flow».

De La Rue’s share price fell just over 8% at the start of trading after the announcement.

Inflation in supply chains and profits at the Covid level in De La Rue

Source link Inflation in supply chains and profits at the Covid level in De La Rue

Back to top button