De La Rue Share Discussion Threads

[masurenguy] 28/9/2021 07:50

Comment on De La Rue, still their largest holding, from the Crystal Amber year end report.

De La Rue plc ("De la Rue")

De La Rue's Currency Division designs and prints banknotes and produces related components, including security features. The Authentication Division supplies tax stamps and products and software to authenticate and track individual products throughout their supply chains, and it produces components for inclusion within individual identity documents such as passports. The Fund's previous annual reports include additional background information on this investment.

In July 2020, De La Rue completed a £100 million equity fundraise, which was priced at 110 pence per share. The Fund participated in the firm placing and open offer elements of the raise. The company now has an almost debt-free balance sheet, a vastly improved pension funding schedule, bank facilities extended until December 2023 and, most significantly, a fully funded turnaround plan. This is proceeding well, with a reduced cost base and revised strategy for the currency division focused on polymer note printing and a renewed focus on authentication opportunities.

De La Rue published full year results to 31 March 2021 on 26 May 2021 and reported adjusted operating profits of £38.1 million. The Currency Division achieved 100% banknote capacity utilisation and strong margin progression. Its polymer growth plans also saw encouraging progress. The Authentication Division secured £195 million of expected multi-year contract value.

The Fund continues to believe that De La Rue enjoys a combination of strong competitive positions in high return businesses and attractive growth opportunities. It holds a 30% market share of global commercial banknote printing. Bank notes will continue to be in demand even in cashless societies as they are needed for currency reserves and wealth storage. The product cycle of 7-12 years is mainly driven by counterfeit risks. This drives the conversion of notes to polymer substrates, which currently only accounts for 4% of notes in issue. Furthermore, the company's core market is developing countries where demand for cash is expected to track economic and demographic growth. De la Rue is well placed to capitalise on the structural shift towards polymer notes. Over the year, the company has announced new contracts in its higher margin Authentication Division. The H2 2021 revenues of £45.9 million suggest that the £100 million Authentication target revenue for FY22 is well underpinned.

Over the year, the essential management changes instigated by the Fund continued to bear fruit. Nevertheless, De La Rue's share price trades on a multiple of just 0.9 of current year revenues and on a PE multiple of 12 times earnings. On consensus estimates for the following year, the revenue multiple is forecast at 0.8 and the PE multiple at 9. The Fund strongly believes that De La Rue's equity valuation is significantly underpriced. Unless the stock market is prepared to value De La Rue appropriately, Crystal Amber anticipates that a trade buyer or buyers are likely to intervene to acquire the business.

[simba_] 28/9/2021 07:44

Good read from Crystal Amber results this morning.'Stronlgy believes that DLAR is significantly underpriced'.

[financialfred] 25/9/2021 07:11

From their monthly net asset value report, up to end of August 2021, Crystal Amber didn't sell any more de la rue shares?

www.hl.co.uk/feeds/apps/rns?id=32145216

[zho] 24/9/2021 09:07

Yes, of course. Thanks.

[gargoyle2] 24/9/2021 09:05

24 Nov is the results, but there should be a trading update before then, as there was last year (15 October 2020).

[zho] 24/9/2021 08:24

24 Nov, 2021

[dougmachin] 24/9/2021 08:21

When's the TS, Volvo?
Apologies for my laziness.
DM

[volvo] 23/9/2021 19:26

Final purchase today.....recon the TS will propel this into the 250p range

[financialfred] 20/9/2021 15:26

This is a strange stock, not going above 200p.

[volvo] 17/9/2021 18:17

Sold down at the end of play.....should be 250p and climbing....the directors will say in the TS, volumes are up very busy, profits at top end of estimates, what the markets make of that is anyone's guess?

[bigmat2811] 15/9/2021 22:53

I bought the shares externally. As far as I know there is no such scheme for employees to buy shares internally

[financialfred] 15/9/2021 22:22

Bigmat2811 Did you buy de la rue shares in an internal share scheme or externally?

[bigmat2811] 15/9/2021 12:27

Chairman what mafia state are you talking about? I am Maltese and there is no such thing as mafia state. All I can say is that the Maltese government is pro business and helps companies like delarue to expand. Without his help this expansion would not have been possible. As a delarue employee I can say that we've never been so busy. Managment are running the company in the most efficient way. This expansion will help to maximize our efficiency and productivity

[volvo] 15/9/2021 12:22

CA dont need to sell until they lose the vote in November, however I suspect they would like premium as DLAR is trading strongly, no imo the markets are still edging towards the cashless society theory, while missing out that cash is here to stay for many many years to come. Roll on the TS end of Sept early Oct

[aringadingding] 15/9/2021 12:12

VOLVO... agreed but prices come from supply and demand and CA have a massive stake they need to sell. bigmat... yes it's highly possible it's being held back if you google / read on this page about how a fund called Crystal Amber have a massive holding but need to sell it for technical reasons.

[volvo] 15/9/2021 11:59

The facts.....uk has full a capacity work load, and is just doubling its polymer note production facilities.

Followed by this news of doubling capacity in its state of the art Malta factory, announced on site by the Maltese PM no less.

Forget CA being a problem.....someone will step forward and buy their position, sooner or later.

[bigmat2811] 15/9/2021 11:46

You guys think its being held back? I'm a bit disappointed actually especially when yesterday it hit the 1.93 before any news was out!

[aringadingding] 15/9/2021 11:23

Yeah the Crystal Amber thing seems big to me at the moment. Once they are sold down to the level they need to be at then demand for shares might start to exceed supply a lot more. I didn't take that into account in my 200p forecast did I... bigmat, you got this.

[gargoyle2] 15/9/2021 11:10

Held back by Crystal Amber too imo -- I'm sure they must be dripping stock into the market.

[evianone] 15/9/2021 10:57

Looks like this is being held back by the brokers/dealers trying to buy stock, with those buying trades, wouldn’t be surprised to see this pop this afternoon, may be totally wrong 😑 but hope not.

[volvo] 15/9/2021 10:47

All pointing in one direction, which is upwards.

Guess the big bounce will come with upcoming TS.

Company very busy indeed.

[the chairman elect] 15/9/2021 08:44

DLAR are of course a fine company and I can understand their reasons reference Malta but having lived there in fairly recent years it has been almost a Mafia style state!

[the chairman elect] 15/9/2021 08:41

As Malta has been the ML hub in Europe at least a money printing operation will give the Maltese a good old laugh!

[my retirement fund] 15/9/2021 08:02

I'm in here followed these for some time