De La Rue in talks over potential sale of divisions

(Sharecast News) - Banknote maker De La Rue said on Thursday that it was delaying the publication of its full-year results as it is currently in talks with a number of parties who have made proposals or expressed an interest in buying either of its divisions.

Following a review of its "core strategic strengths", De La Rue is now evaluating strategic options for the group and each division.

Chairman Clive Whiley said: "Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group's divisions.

"The board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full year results in July."

The company said there was no change to its previous guidance for FY24.

In the authentication segment, the group has reached agreement with two existing Government Revenue Solutions customers for multi-year extensions to their contracts, for three and five years respectively, for the supply of a digital tax stamp solution to track and trace excisable products.

This brings the total of substantial contract renewals that De La Rue Authentication has achieved within the last 12 months to four. Together, these renewals carry with them expected total contract values exceeding £150m.

De La Rue said the currency division "continues to progress" and that the market for banknotes and associated components is recovering.

The division's order book rose to £239m at the end of March and since that time the group has secured agreements for further orders totalling about £60m. This compares to an order book of £137m at the end of FY23, and the £220m announced last December.

At 0815 BST, the shares were up 6% at 104p.