Based on the excerpt below: Study consumer behaviour patterns and determine if there is a swing in behaviour with regards to usage of bank notes; and identify if De La Rue should shift its focus to a new business segment.

Why Is A Company That Prints Money Running Out Of Cash?

De La Rue, the company that supplies banknotes to the Bank of England, is in trouble. Founded in 1813, De La Rue has a long history of producing distinctive stationery for governments, including railway tickets, stamps, passports and banknotes. It is currently the worlds largest producer of passports, though it has recently lost its contract to produce passports for the British Government. By far its largest business line, however, is banknote production. In 2018/19, this contributed 77% of revenue and 61% of adjusted profit.

Because of this, lots of people assume that De La Rues difficulties are structural - and terminal. After all, if three-quarters of your revenue comes from printing banknotes, and demand for banknotes is falling, you must surely be on your way out. Its obvious we are moving to a cashless world, said one contact. In these days of e-payments and cryptocurrencies, do we even need companies like this anymore?

By 2015, the CEOs strategic plan divided the companys product lines into two groups: the low-growth legacy businesses of paper banknote production, cash sorting and vault management and higher-growth business lines using advanced technology. Over the next four years the company concentrated on developing new products, including polymer banknotes, biometric passports and other identity products, and downgraded its legacy businesses. In 2018, it sold 90% of its paper banknote production business, Portals De La Rue, to an investment fund, Epiris Fund II: De La Rue now supplies paper banknotes to governments through an exclusive contract with Portals.

At first, Sutherlands plan showed signs of working. De La Rues revenues and profits rose slightly in 2016 and 2017. But it wasnt enough to make a material dent in its balance sheet insolvency. By 2019, the companys worsening position was painfully evident. Revenues had fallen, cash flow had turned negative and net debt was back in triple digits. Once again, a strategic plan had delivered nothing but uncertainty. And once again, the chief executive lost his job.

Excerpt from Forbes Online (Written by Frances Coppola) https://www.forbes.com/sites/francescoppola/2020/01/30/why-is-a-company-that-prints-money-running-out-of-cash/?sh=6ae94c5f3b5d