De La Rue has said that it is lowering its forecast for profits for the while year as over-capacity in the banknote printing business effects it profitability.

The company said that it now expects its operating profit to be around £90 million for the whole year indicating that it will not be able to achieve its goal of increasing the profits to £100 million from £40mllion in 2010/11. The Cash Processing Solutions (CPS) business of the company is expected record loss during the first half of the year as it suffered during the second half of the previous financial year.

"The continuing overcapacity in the banknote paper market has led to a worsening pricing environment in the printed banknote market with recently confirmed orders, for delivery in the second half of 2013/14 and in the 2014/15 financial year, reflecting this pricing pressure," the company said.

The company's Solutions division has been performing well and is expected to record growth. The board said that it is pleased with the level of order for the Currency division but the pricing environment in the second half of
2013/14 will continue to effect throughout 2014/15.