World’s Biggest Banknote Printer Can’t Stop Losing Money For Its Shareholders

(Bloomberg) -- The world’s biggest printer of banknotes just can’t stop losing money for its shareholders.

De La Rue Plc shares plummeted again on Wednesday after the more than 200-year-old British company issued its second profit warning of the year. The stock has now lost about 80% of its market value in two years after the loss of a major contract and a U.K. Serious Fraud Office investigation into suspected corruption in South Sudan.

In a statement, De La Rue forecast full-year adjusted operating profit “significantly lower than market expectations.” It didn’t provide a reason and a spokesman declined to comment further when contacted by Bloomberg.

The company has been hit in recent years by heightened competition in money printing, and by the controversial loss of a contract to print British passports after Brexit to a Franco-Dutch rival. Clive Vacher, the former chief executive officer of Dynex Power Inc., was appointed CEO earlier this month and is leading a review. He’ll provide an update alongside first-half results on Nov. 26, De La Rue said.

The shares fell as much as 30% to a record low, extending their year-to-date drop to 69% and cutting the company’s market value to 137 million pounds ($177 million).

--With assistance from Ivan Edwards.

To contact the reporter on this story: Joe Easton in London at jeaston7@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Paul Jarvis

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