British banknote printer De La Rue's half-year profit slips on currency division weakness
Adds background in paragraph 2, details in paragraphs 3-4
Dec 12 (Reuters) -British banknote printer De La Rue DLAR.L on Thursday posted a 7.6% fall in half-year operating profit, hurt by persisting weakness in its currency business and back-loaded contracts for the year.
De La Rue has been trying to recover from a downturn in cash demand post-pandemic after banks stockpiled cash and contact-less payments became a favourite among customers.
The over 200-year-old company, which works with governments, central banks and commercial organisations in more than 140 countries, said that the group's performance will be second-half weighted, with some contract deliveries within the Currency division moving into the next six-month period.
While the company's order book showed promise with an year-over-year increase, its sole remaining Currency division revenue fell 16.3% in the first-half, with adjusted operating profit down 21.4%.
The company, which sold its authentication business in October, posted an adjusted operating profit of 7.3 million pounds ($9.3 million) for the six months ended Sept. 30, compared with last year's 7.9 million pounds.
($1 = 0.7828 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Sumana Nandy
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