De La Rue Share Discussion Threads

[buffettjnr] 17/2/2022 21:21

Looks like a good opportunity back here at 114p

[financialfred] 11/2/2022 12:13

Presume 110p to 120p will be the new range for this share price?

[gargoyle2] 03/2/2022 22:20

It must be the Omani contract that has stopped the management team buying shares at this level. Phew! Expect some director buys in the next day or two..

(and I say that as a disgruntled shareholder with a relatively large position, hoping that Vacher will read it, rather than as a deramper!)

[financialfred] 03/2/2022 14:58

shame, the share price hasn't risen a flicker after the authentication win

[masurenguy] 03/2/2022 07:37

AUTHENTICATION CONTRACT WIN

De La Rue today announces that it has signed a contract with the Oman Tax Authority to implement a Digital Tax Stamp solution for excisable goods, as announced on 1(st) February 2022 in Oman. The 5-year contract will see De La Rue and the Tax Authority implementing a tax stamp scheme for tobacco products compliant with the World Health Organisation's Framework Convention for Tobacco Control (FCTC) and product marking and serialisation for other excisable goods. Combining secure printed tax stamps and digital tracking solutions, the scheme will enable the Tax Authority to tighten control over the suppliers' commitment to pay the excise tax and to monitor the production and import processes of excisable goods. The scheme will therefore contribute to enhancing the tax revenues of Oman. This contract represents the latest in a series of long-term contract wins for De La Rue's Authentication division, in support of the Turnaround Plan objectives. The Company expects this contract to contribute to revenue starting early in Financial Year 2022-23.

[imastu pidgitaswell] 02/2/2022 20:06

Yeah, it's certainly cheap down at 110.

Couple of things though - 1) see what happens at 150 (if gets there) - the gap will be filled; and 2) often the case that things don't turn around quite as quickly as people think and hope - the cliche being 'profit warnings come in threes'.

I'm sure I saw Volvo on here recently - although strangely gone quiet again. Which is good.

[my retirement fund] 02/2/2022 18:36

The recovery has started in the sharprice nice

[kooba] 30/1/2022 08:25

Raising the money to secure the future of the business on the back of a turnaround plan was one thing after years of mismanagement , delivering on such a turnaround plan in a timely manner appears to be something else. When you have no excess capacity in a line of business that should give you pricing power , there is no evidence that the turnaround plan is and this full capacity is reestablishing the kind of margins that will restore this shareholder value. Also the growth expected in authentication seems more pedestrian than guided only recently. It is easy to come up with excuses in current global situation however many company's in niche areas are flourishing and finding new markets in the public health position we find ourselves in. From authentication to documentation De la Rue had opportunities if they move quickly unfortunately i can see no such opportunities taken.The board need to demonstrate they are holding executives to account and show there is confidence in the turnaround being delivered...some support of the shares would signal that at this time..no director purchases might signal that they think they are derailed.

[financialfred] 30/1/2022 07:22

Yes Volvo, their order book might be full, but sod all use when they selling at a loss and subsiding their customers! Buy their shares for a quick turnaround profit and nothing else!

[volvo] 29/1/2022 18:27

How disappointing that Vacher decided to kitchen sink all the good work in an effort to flush out Crystal Amber and Sabre.

Make no bones about it this company has more orders than capacity.

The holdings news on friday will see follow more next week.

[financialfred] 29/1/2022 14:02

Maybe the board and directors know what's going to happen and not bothering to?

[gargoyle2] 29/1/2022 08:25

Why aren't the directors buying, I ask myself. Vacher was on a package of £1.1 million last financial year (no doubt more this year), up from £249k in 2020. Yet he's shown no faith at all in the company's prospects, other than a token £150k in the equity raise at 110p. Time for him to buy more, I think.

[she-ra] 28/1/2022 22:57

I think the £100 million raise paid down some debt which helped the company survive

[financialfred] 28/1/2022 22:23

God Squandering money from redundancies site closures, to sell a product at a loss in high volume. Wasting £100M equity raise, on new presses to sell a product in decline at a loss. All to keep the currency side at full capacity. Invest at your peril. Where is Volvo??

[she-ra] 28/1/2022 16:45

I suppose this has been timed for the weekend papers.

They must miss Geoff Foster and his takeover stories about De La Rue that people still like to reference as fact. I wonder where they came from?

[spooky] 28/1/2022 16:36

Nice above market bid in the auction at the end of the day.

[sphere25] 28/1/2022 14:32

Subject to a bid. If I am in it, the jury really is out but we will see.

There are some notable blocks going through here

Volume is picking up. Someone is in the market trying to clear sellers so might be worth keeping an eye on.


1.34m
200k
203k
130k

Stack more further down. DLAR needs this type of HUGE clearout to have any chance of bouncing..any small chance.

All imo
DYOR

16:35 Blooming hek, they were keen in that auction, some big orders have resulted in a close at 119.8p so clearly these buyers are seeing value and maybe buying into the CRS takeover (or are they talking their own book) line of thought. Find out next week if this big buying follows because when a company disappoints like this, it takes ENORMOUS buying to clear sellers so ALOT more is still needed but at least something bullish here.

[gargoyle2] 28/1/2022 09:26

Posting CRS's commentary here -- thanks for highlighting:

During the quarter, De La Rue published its unaudited interim results for the six months to 30 September 2021. Adjusted operating profits rose by 166 per cent. to £17 million. Positive operating cash flow was £25.8 million and the outlook for the full year was described as being in line with the board's expectations. Nevertheless, earlier this week, De La Rue released a trading update stating that as a result of headwinds relating to the Covid-19 pandemic, including employee absences at global manufacturing facilities and supply chain shortages, operating profits are now expected to be flat on the previous year at between £36 million and £40 million, as against previous market expectations of between £45 million and £47 million.

Prior to the trading update, the Fund had been in dialogue with De La Rue's Chief Executive and Chairman regarding gross margins. The Fund conveyed its view to De La Rue that its pricing has been wrongly focused on capacity utilisation rather than on gross profit and contribution to fixed overhead maximisation. Prior to the trading update, operating margins at De La Rue's Currency division were forecast at 8.4 per cent. Following the trading update, the operating margin is forecast at 6.2 per cent. In 2010, De La Rue achieved operating margins of 23.2 per cent. Currency demand from central banks has been buoyant and the Fund believes that De La Rue could have secured higher gross margins.

De La Rue is the global leader in currency with a market share of 30 per cent. Whilst De La Rue's supply chain headwinds are outside of its control, the Fund believes that much of the £36 million per annum of cost savings have effectively been utilised to subsidise customers. Had gross margins on its Currency division's revenues of close to £300 million, been three per cent higher, operating profits would have been £9 million higher.

In July 2020, De La Rue completed a £100 million fundraise which was priced at 110p a share. Over the last eighteen months, the business has been transformed, yet following the profit warning in this week's trading update, the share price has returned to 110p. Furthermore, businesses with similar pension profiles are now benefiting from rising interest rates expectations. The Fund believes that in the coming year, at De La Rue, this should result in a material reduction in future pension contributions and accordingly increase free cash flows.

Shares in De La Rue now trade on 9.7 times revised earnings per share to March 2022 and on 8 times to March 2023. The Fund believes that following the Covid-19 pandemic, the industry requires consolidation. Given its current rating, the Fund believes it is highly likely that in the coming months, De La Rue will be the subject of a takeover bid from one or more of its overseas competitors. The Fund believes that this will be the inevitable outcome of management prioritising 100 per cent capacity utilisation rather than cash gross margin maximisation.

[aylingd] 28/1/2022 09:23

Thanks for highlighting that slicethepie. Interesting, Crystal certainly not happy with the way the company is being run. I would think some sort of Corporate activity inevitable now, hopefully a full T/O.

[slicethepie] 28/1/2022 08:55

Worth reading crystal amber rns today and their view on how this is being run....takeover inevitable?

[gargoyle2] 27/1/2022 19:48

Still no director buys at this level. Vacher talking a good game but still no share buying, despite his £1.1 million plus comp package. Disappointing imo.

[webby] 27/1/2022 15:17

Thanks. TR1 was not clear as previous position left blank.If I understand correctly?

[jensen10] 26/1/2022 18:03

Thank you for correction Gargoyle.