British currency maker De La Rue has warned that its profits next year would be hit by rising costs of supplies, sending its shares sharply lower on Wednesday.
The company, which makes British banknotes, said that “further headwinds” would curtail adjusted operating profit for 2023. It added that there was now a “substantial degree of uncertainty in the outlook”, with supply chain inflation expected to increase operating costs by £5mn.
“There is a possibility that disruption may affect revenue,” it added. “The board now expects that adjusted operating profit for full year 2023 will be broadly flat versus full year 2022, and weighted towards the second half.”
Shares in the group fell 8 per cent in early trading in London to 102p, pushing their decline for the year to nearly 35 per cent. De La Rue’s supply chain includes chips used in passports for countries such as Australia, which have been hit by global disruption. It also faces…