Recent overcapacity in the banknote industry. caused by increased longevity of banknotes and state-owned suppliers entering the commercial market is creating a very challenging operating environment for commercial printers like De La Rue. Its share ...
Shares in banknote and passport producer De La Rue (LSE: DLAR) fell by 25% when markets opened this morning, after the firm slashed its interim dividend by 41% and cut its forecast for underlying pre-tax profits by 26%.
Stationery and magazines giant WH Smith (LSE: SMWH) has fallen 3% following its latest trading update released today. But I view this as nothing more than profit-taking following the share's steady price ascent.
De La Rue (LSE: DLAR) saw its earnings fall by a quarter in its recent financial year, as it faced increased competition from other note-printers and the higher cost of paper reduced its profit margins.