De La Rue Share Discussion Threads

[simba_] 28/5/2021 09:19

Yeah, banknotes are definitely not 'a declining market'. Dont confuse your own use of cash with notes in circulation around the world. .All the evidence shows that globally, banknotes in circulation is still trending up and DLAR are in a fantastic position to meet this demand.

[zho] 28/5/2021 09:08

"It seems counter-intuitive in Covid [but] when there are worldwide crises, demand for cash goes up,” said Clive Vacher, chief executive of De La Rue, the 200-year-old FTSE 250 listed company that holds the contract to print currency at the site. “Cash is still the dominant system in many countries around the world. Volumes are rising.”

BoE data suggest people are spending less cash, but the total value of banknotes in circulation has increased as they appear to want to hold more of it.

[simba_] 28/5/2021 09:03

Can you share your research that shows banknotes are in decline.

[financialfred] 27/5/2021 21:11

Why on earth would anyone buy this stock?

No dividend till 2023,
>70% of revenue comes from banknotes, a declining market.
So much overhead costs for both currency and authentication, amazed any profit made.
3rd of profit came from transition of passport work to new provider (that's gone next year).
No innovations, stuck with same old security features for increasingly obsolete products.
Selling everything and more redundancies to reduce debt.

This stock will never go above 200p.

They are dinosaurs stuck in a digital age

[volvo] 27/5/2021 19:35

Bought 20k at 183p today, orders in, full capacity, new line coming on in Bolton, lets see, love betting against the momentum market

[volvo] 26/5/2021 19:13

The results and comments encouraged me to double my position here in my SIPP.

This share will double within 12 months, they have cornered the market with little competition.

Orders are in and are roll over orders worth millions, great play from here

[zingerburger] 26/5/2021 13:34

160p baseline

[coscos] 26/5/2021 08:55

Institutional support will continue here and support the share price going forward. Once small time speculators have sold out, we'll be back up over 200p. Probably before the day is out.

[imastu pidgitaswell] 26/5/2021 08:40

I know a lot cheaper...

As I say, it's not expensive. It's just not the screaming misprice that it was at 40p.

[masurenguy] 26/5/2021 08:37

A projected PER of 12.6 for the current year is cheap !

[wjccghcc] 26/5/2021 08:34

Also, pension contribution doubling from 11.4mm to 24.5mm won't help the cashflow.

[retsius] 26/5/2021 08:20

Profit taking after a good run up to results.

Completely expected as punters retreat, and profit taken on margin money.


Results,although well flagged,were excellent.

[masurenguy] 26/5/2021 08:14

Yes - this is my third fall over the past few days on good results/trading updates. Looks like there are some nervous investors around who quickly take profits rather than embracing the longer term view!

[tonytyke2] 26/5/2021 08:13

I would suggest pre-result traders exiting.

[johnrxx99] 26/5/2021 08:11

Mas, I've had 4 good results/updates over the last week - all tanked. Weird.

[masurenguy] 26/5/2021 08:08

Surprised to see an opening sell-off following these above expectation results. The projected PER for the current year is now just 12.6 !

[kooba] 26/5/2021 07:55

Institutions will be focusing on this...so will Private equity i imagine!"Following an initial period of cash outflow to fund the Turnaround Plan, we continue to aim for the Group to be generating cash flow capable of supporting sustainable cash dividends to shareholders by the end of the Turnaround Plan in FY 2022/23."

[kooba] 26/5/2021 07:53

Numis buy upgraded Target 250p (220p)

[volvo] 26/5/2021 07:28

Clive Vacher, Chief Executive Officer of De La Rue, said:

"We see a strong pipeline of business for FY 2021/22 and continue to expect to deliver the full financial and operational benefits of the Turnaround Plan during the year."

[coscos] 26/5/2021 07:20

Solid set of results which are ahead of expectations. Zero risk investment opportunity from here on. Haven't said that for a while with DLAR!

[masurenguy] 26/5/2021 07:07

Looking good - with operating profit ahead of previous projections.

2020/21 FULL YEAR RESULTS

De La Rue plc announces its full year results for the year ended 27 March 2021.The comparative period was the twelve months ended 28 March 2020.

Highlights:

-- Adjusted operating profit increased by 60.8% to £38.1m (FY 2019/20: £23.7m)

-- IFRS operating profit of £14.5m reflecting significant exceptional item charges

-- Turnaround Plan savings completed, delivering a cumulative£P36m of annualised cost out due to the programme from the end of FY 2020/21

-- Substantial growth in revenue and profitability in ongoing Authentication and Currency divisions, achieving an adjusted operating profit of £27.5m (FY 2019/20: £1.4m)

-- Authentication saw good growth in H2 2020/21 and secured orders with expected total multi-year lifetime contract value of £195m from start of FY 2020/21 to date

-- Currency 100% banknote capacity utilisation in H2 2020/21 with strong margin progression during year

-- Bank of England majority polymer contract won starting July 2021; SAFEGUARD(R) now selected for all Sterling denominations

-- Net debt substantially reduced to £52.3m (FY 2019/20: £102.8m)
-- £100m equity capital raise completed July 2020

[cravencottage] 25/5/2021 11:13

Up she goes!