De La Rue shares collapse on profit warning

Shares in the 201-year-old firm plunged 26% to a four-year low

Banknote printer De La Rue has blamed severe price-cutting in its markets, particularly by the Russian state rival, for a huge profit warning.

Shares in the 201-year-old firm plunged 26 per cent or 195p to a four-year low of 564p. De la Rue rejected a 935p takeover bid from Dutch rival in 2011 and its shares were above 1000p less than a year ago.

De La Rue said it expected headline profits for the year to next March to be £20 million lower than last year’s £77.3 million. Worryingly it also warned that it expects difficult market conditions to continue into the following year.

Rogerson said he could not blame the Bank of England which named De La Rue this month preferred bidder for the next 10-year contract. He said: “We are on the old contract and prices until March next year and still negotiating over the new one.”

New chief executive Martin Sutherland, recruited from BAE Systems last month, will start as expected in two weeks’ time.

Shares in waste group Shanks dropped 15.5p or 15 per cent to 87.25p after it issued a profits warning. Chief executive Peter Dilnot said: “Market conditions in our Benelux Solid Waste business have deteriorated.”

The group said it now expects profits for the year to March to be some 15 per cent below expectations.