(Alliance News) - De La Rue PLC on Thursday said it is seeing "encouraging signs of recovery" following a significant downturn in printed currency demand over the past 18 months.

Shares in De La Rue jumped by 11% at 40.41 pence each in London on Thursday morning.

The security products maker said it swung to a pretax loss of GBP29.6 million in the year ended March 25 from a profit of GBP24.2 million the year prior.

This is largely attributed to lower revenue from its Currency division, adverse product mix, and an increase in operating expenses, De La Rue explained.

Revenue from customer contracts fell by 6.7% to GBP349.7 million to GBP375.1 million the year before.

Adjusted operating profit was GBP27.8 million, down 27% from GBP36.4 million the year before, in line with its previously stated expectations.

Back in April, De La Rue said it expected full-year adjusted operating profit in financial 2024 to be in the low GBP20 million range. This remains De La Rue's expectation for the full-year.

Looking ahead, De La Rue expects to see some recovery in the currency market. It forecasts revenue in the authentication division to exceed GBP100 million, and also expects net debt to rise to around GBP100 million by both the half year and year end. De La Rue added it will continue to focus on restructuring the business, driving efficiencies and innovation, and reducing costs.

Chair Clive Whiley said: "We are approaching the challenges facing the company with vigour and I am confident that today's announcement, which highlights support from our core lenders, pension trustees and other stakeholders will enable a focus upon the significant market opportunities from a stable platform."

By Sabrina Penty, Alliance News reporter

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