De La Rue issues profit warning

26th Sep 2014 07:40

Slower-than-expected growth in its solutions division and challenging market conditions in its currency division have forced Security documents designer and producer De La Rue to issue a profit warning.The company said it expects operating profit and underlying profit before tax for the year to be £20m lower than originally estimated.Operating profits last year were £89.3m, while analysts had previously estimated operating profits of £90m for the current financial year and £94m in 2015/16, but have now downgraded their expectations to £68m and £58m respectively."A number of prospective orders in the pipeline have not been put out to tender as expected but have been extended with the incumbent supplier," the company said in a statement.The group also said the rate of growth in government revenue solutions within the security products business was slow and had not mitigated the decline in some of the other product lines.De La Rue said it intend to re-evaluate the company's dividend for the full year but expects to announce an interim dividend of 8.3p per share when it publishes its results for the six months to 27 September at the end of November.De La Rue shares were down 25% at 08:39 on Friday.