- De La Rue said it expected to generate lower operating profit year-on-year amid a rise in competition and the company reported a slump in pre-tax profits after a customer in Venezuela was unable to transfer funds amid US sanctions on the country.

For 12 months, pre-tax profits fell to £25.5m from £113.6m a year earlier, while revenue rose 12% to £516.6m.

The exceptional items during the year, resulted in a net charge of £27.9m, the bulk of which was due to a £18.1m credit loss provision after a customer in Venezuela currently was unable to transfer funds due to non UK related sanctions.

Looking at the year ahead, the company warned of the operating profit would be somewhat lower than the current year, as competition in the banknote print market was expected to rise, creating some significant headwinds for the group.

'While Group revenue is expected to be broadly in line with FY19 as strong growth in PA&T will offset the weakness in Currency, margin will be impacted by the competitive pressures in banknote print,' the company said.

But the anticipated margin decline in banknote print was expected to be 'partially mitigated by the growth in PA&T as well as the early benefit of the cost reduction programme,' the company added.

At 9:23am: [LON:DLAR] De La Rue PLC share price was -114.5p at 343p

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