The business, which designs one-third of the world's banknotes, stated that demand for cash has decreased since the Covid outbreak, when central banks loaded up on cash.

The business, which designs one-third of the world's banknotes, stated that demand for cash has decreased since the Covid outbreak, when central banks loaded up on cash.

It stated that the slump will have a negative impact on its full-year profits, which are expected to fall short of projections.

Due to the tighter trade circumstances, the company is having to renegotiate its credit agreements with its banks.

Clive Vacher, the company's CEO, told the BBC that central banks increased orders for bank notes during Covid, as they normally do during economic downturns. However, they were now postponing fresh orders as they exhausted their supplies.

"They always do that when there is a crisis because it gives them security," he explained.

"So we expected a downturn, which has occurred," he continued, "but that downturn is probably extending deeper and for an additional 9-12 months than we'd normally expect in the normal cycle of things."

It comes at a time when consumer usage of cash is declining in many nations as more purchases are conducted online or via cards, notably contactless payments.

De La Rue stated that there are indications of healing but does not know when this will occur. De la Rue shares plunged as much as 30% on Wednesday before recovering some ground when the company released its trade report.

The company said it was in negotiations with its banks over its loan arrangements due to decreased profitability and increased interest rates as a result of the Bank of England's series of increases.

The banknote maker now anticipates its full-year earnings to be in the "low £20m range," though its loan interest payments have increased.

(bbcnews.co.uk, dailymirror.co.uk)