De La Rue shares dive as profits fall

Shares in banknote printer De La Rue tumbled almost 9% after the firm reported lower full-year profits and cut its dividend by 40%.

It warned last year that profits would be £20m lower than in the year before.

Operating profits were down 22% at £69.5m, in line with that guidance, but the company also chopped its dividend from 42p to 25p.

De La Rue, which is more than 200 years old, makes notes for 150 countries including the UK.

Shares in De La Rue fell by 10% in early trade before recovering slightly. However, in lunchtime trade they were still 47.5p, or 8.6%, lower at 506p.

The company complained last year that its latest contract from the Bank of England was less favourable and that other countries would be encouraged to improve their contracts when renegotiating.

It has been battling rising costs, largely the price of paper, for a number of years.

De La Rue, which has customers in 65 countries, also makes biometric passports.