British currency printer De La Rue is currently the biggest faller on the FTSE250 this morning, down 8.5 per cent cent after it warned it would miss its profit target for this year because of the challenging market.
De La Rue's performance in the first half of the financial year was in line with its expectations, with operating profits estimated at around £39m, up 18 per cent on the six months to 29 September 2012, but the firm said operating profit in 2013/14 will be £90m - a fall from its £100m target given in its three year improvement plan introduced in 2010/11.
Print volumes were down 10 per cent at 2.6bn notes in the six months to 29 September. Increasing competition in the banknote paper market has affected the company's prices, with recently confirmed orders reflecting this. Banknote paper volumes, however, increased by four per cent to 4,700 tonnes.
Consultants at Capital MSL has reduced its forecast for De La Rue this morning, lowering its target price and switching its recommendation to "Sell".