De La Rue said to be seeking pension deferral

Struggling banknote printer De La Rue has reportedly requested breathing space from its pension trustees by delaying nearly £20m of retirement funding payments.

According to Sky News, the company - which has seen its shares slump in recent years after a string of profit warnings - has asked trustees to defer the contributions in the last few weeks.

In November, it issued the latest in a series of profit alerts and criticised its auditor, EY, for including a going concern warning in its accounts. Since then it has disclosed further challenges involving its operations in India and Kenya, hitting the share price further.

De La Rue now has a market value of just £131m.

A source close to the firm told Sky that its pension deficit, like that of many corporate pension schemes, had improved significantly in the last 18 months.

"The pension scheme has had over £50m from the company in the last three years, so this is a natural rebalancing towards investors who have not done as well," the source said.

They insisted that a rejection of the pension deferral request would have "no adverse" effect because the move was not being driven by liquidity needs.

At 1255 GMT, the shares were down 4.7% at 64.25p.