The order book at De La Rue has reached a five-year high at £338m, despite revenue at the digital and physical protections firm dropping by 10% year-on-year.

In the group’s half-year results to 30 September, its revenue reached £145.1m, while its gross profit dropped by 3.2% to £38.9m.

Despite this, its adjusted operating profit increased from a loss of £3.4m to a profit of £1.3m, an increase of 138.2%.

In this time, the firm said that its order book on its currency division had received “significant orders” in Q3 to date, taking its November order book to £338m, which is the highest figure in five years.

The results also come after the firm announced the proposed sale of its authentication division to Crane NXT for £300m in October.

Chief executive officer at De La Rue, Clive Vacher, said: "We have made substantial progress in 2024 both operationally and strategically. We have reached agreement for a sale of authentication to Crane NXT for £300m and completion of the authentication sale will allow us to repay both our existing banking facilities in full and materially reduce the remaining deficit on our legacy defined benefit pension scheme.

"We have also built up the currency order book to the highest levels seen for at least the last five years. The material new orders that we have won in recent months will begin to convert into increased revenue as we move into the next financial year and solidly underpin our growth expectations."

Going forward, the firm said that its "continued activity building" in its currency division, alongside a solid performance from its authentication division, reiterated its full-year guidance for the full year, with an adjusted profit in the mid to high £20 millions region.

Looking further ahead, De La Rue expects the conversion of order book into sales to accelerate within currency, producing “strong double-digit growth”.

Investment director at AJ Bell, Dan Coatsworth, stated: "Bank note printer De La Rue has been badly hit by a shift away from cash which accelerated during the pandemic. That’s reflected in a drop in profit for the first half of its current financial year.

"However, there were some signs of life in its latest update with the order book increasing to a five-year high. Crucially, this is a timeframe which takes us back to before COVID.

"Having announced the sale of its authentication business in October, the company will now be exclusively focused on its currency arm and there is significant pressure on the current management team to demonstrate the business still has life in it despite the structural headwinds it faces.

"The authentication sale will at least provide the business with a useful injection of cash and give it some breathing space."

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