De La Rue Share Discussion Threads

[strudwick] 25/11/2002 13:37

As you say starting to look interesting but not there yet for me. If it tanks i'll look at it, if it bounces i'll forget it.

[andy46] 25/11/2002 07:49

De La Rue Plc
(Based on Y/End 30 March 2002)





Interim Results Due 26 November 2002
Share Price £2.10
Market Cap £405,862,180
Full Year Dividend £0.134
EPS £0.40 (before exceptional Items £0.322)
Issued Shares 193,267,705
P / E Ratio 5.2 (before exceptional Items 6.6)
Net assets 315,900,000
Intangible Assets £45,700,000
Net Funds £50,000,000
Shareholder funds £312,800,000
Total Operating Profit £74,100,100 (before exceptional Items £85,200,000)
Return On Equity 23.4% (before exceptional Items 27.3%)
Current Ratio 1.6
Acid Test 1.18
Dividend Yield 6.4%
Dividend Cover 3.1 (before exceptional Items 2.43)
NAV Per share £1.63
P/TBV £1.51
Net Cash 15%


Some interesting ratios IMHO. Even if 25% were lopped off their profits, things still would seem ok. Getting close to a potential value investment for anyone who's not already a buyer of this stock. I'll wait until Tue / Wed after the interim results before I make my decision.

Andy

[m.t.glass] 22/11/2002 08:37

De la Rue shares fell 9.5p to 207.5p amid talk that next week's interim results will disappoint to such an extent that analysts will be forced cut full-year profit forecasts by up to 25%, The Guardian says. Two things are worrying analysts - the technical problems in the banknote printing division and the company's prediction that deferred orders for its cash counting systems will come through in the second half of the year. With the financial services sector feeling the pinch, some analysts believe these orders will not materialise until next year at the very earliest. They also note that Britannic, the fund management company, dumped 6.5m shares last week.

(Source: nothing-ventured.com)

[m.t.glass] 22/11/2002 08:36

De la Rue shares fell 9.5p to 207.5p amid talk that next week's interim results will disappoint to such an extent that analysts will be forced cut full-year profit forecasts by up to 25%, The Guardian says. Two things are worrying analysts - the technical problems in the banknote printing division and the company's prediction that deferred orders for its cash counting systems will come through in the second half of the year. With the financial services sector feeling the pinch, some analysts believe these orders will not materialise until next year at the very earliest. They also note that Britannic, the fund management company, dumped 6.5m shares last week.

(Source: nothing-ventured.com)

[theape] 13/11/2002 12:31

Net realisable value of equipment always fascinating.

conversations with auctioneers in this area is illuminating (if you are a bear of course)- what market ??

[m.t.glass] 12/11/2002 23:54

The Times
November 13, 2002

Fear of third warning hits De La Rue shares
By Nick Hasell



SHARES in De La Rue tumbled to a three-year low amid fears that the banknote and cash systems group could deliver its third profit warning in four months when it files first-half figures later this month.
After the latest alert in September, some analysts suggest the company has its work cut out to resolve the earlier production problems in its banknote division. De La Rue has indicated that it will be able to make up the revenue shortfall in the second half, but Numis Securities points out that previous difficulties have taken “some time to sort out”. Separately, the revised forecasts for De La Rue’s cash systems business depend upon previously deferred orders from its bank clients coming through later in the year, of which some observers are sceptical.

But perhaps the biggest worry for investors is the appointment last month of a new finance director, in the form of Stephen King from Aquila Networks, the old Midlands Electricity. Given the tendency of new appointees to “clear the decks”, analysts believe a third warning on November 26 — and a re-examination of the dividend policy — is entirely possible. De La Rue lost 17½p at 218½p, against a 16.9 point rise in the FTSE 250 to 4,462.6.

[m.t.glass] 12/11/2002 23:51

The Times
November 13, 2002

Fear of third warning hits De La Rue shares
By Nick Hasell


SHARES in De La Rue tumbled to a three-year low amid fears that the banknote and cash systems group could deliver its third profit warning in four months when it files first-half figures later this month.
After the latest alert in September, some analysts suggest the company has its work cut out to resolve the earlier production problems in its banknote division. De La Rue has indicated that it will be able to make up the revenue shortfall in the second half, but Numis Securities points out that previous difficulties have taken “some time to sort out”. Separately, the revised forecasts for De La Rue’s cash systems business depend upon previously deferred orders from its bank clients coming through later in the year, of which some observers are sceptical.

But perhaps the biggest worry for investors is the appointment last month of a new finance director, in the form of Stephen King from Aquila Networks, the old Midlands Electricity. Given the tendency of new appointees to “clear the decks”, analysts believe a third warning on November 26 — and a re-examination of the dividend policy — is entirely possible. De La Rue lost 17½p at 218½p, against a 16.9 point rise in the FTSE 250 to 4,462.6.

[wild bill] 12/11/2002 17:49

I can see there's loads of private investor interest in this share. OK Tone you were right way back in July. What's your prediction now?

Muchos Wonga, do you think now could be the perfect time to buy?

BFC, your views please?

[big vern] 23/9/2002 08:17

RNS Number:4886B
De La Rue PLC
23 September 2002
DE LA RUE PLC
TRADING UPDATE FOR THE PERIOD TO 28 SEPTEMBER 2002
De La Rue is today issuing its trading update prior to entering the closed
period ahead of publication of its interim results on 26 November 2002.
Outlook for 2002/2003
As a result of continued poor trading by some parts of the business since the
AGM, there has been a further deterioration of the expected first half operating
result. A strong order book in Currency, planned action to reduce costs in
Security Products' manufacturing base and overheads and some encouraging signs
in Cash Systems leads the Board to expect a significantly better result in the
second half than the first half. Given some of the uncertainty in the general
economic environment worldwide, trading in certain parts of the business
continues to be slow. While De La Rue expects the second half operating result
to be comparable to the same period last year, the expected shortfall in the
first half means that the operating result for the whole year will be
significantly below last year.
Currency
Currency continues to have a strong banknote order book although, as previously
indicated, fulfilment was delayed by an unusually large number of new designs,
which take longer to prepare than repeat orders. This situation has been
resolved and, combined with a recent upturn in demand for banknote paper, the
Company expects a strong second half in Currency, as anticipated. For 2003/2004
it expects to see a return to more normal sales patterns, particularly in paper,
with a consequent benefit to the De La Rue Tapes business.
Security Products
As previously indicated, trading in the Security Products business continues to
be weak. The Company is announcing separately today the results of the
strategic review of its manufacturing operations. The costs of this review will
result in an exceptional charge to be taken in the current year of #17.7m, #6.1m
of which is non-cash. A combination of the proposed restructuring, the
acquisition of House of Questa, also announced separately today, and associated
reductions in overheads in the division should result in annual savings of
approximately #5m. The majority of these will come through in the 2003/2004
financial year.
Cash Systems
In the AGM statement on 15 July 2002 the Company indicated that the year had got
off to a slower start than expected, primarily due to Cash Systems' customers in
the euro zone holding back on re-ordering following the euro changeover. Order
conversion continues to be slow in some of the important European markets with
the consequence that the operating result for the first half will be below
previous expectations. However, in the USA, which is the largest single market,
there are encouraging increases in sales in the Financial Institutions business.
In Currency Systems, there has been a significant increase in worldwide sales
of the 6000 banknote sorter. But this is more than offset by delays in ordering
decisions for several major projects by US casinos and commercial banks.
Global Services

A combination of continued difficult trading conditions in Brand Protection and
timing delays in Identity Systems' projects has led to a slow first half in
Global Services. In Identity Systems, the overall size and complexity of a
number of projects is greater than last year and consequently decision cycles
are much longer. The division is expected to make a modest profit in the second
half although this will not offset first half losses.

Sequoia Voting Systems
Sequoia Voting Systems, De La Rue's US-based election systems business, is
progressing satisfactorily. Sequoia was successful in winning bids in the first
part of the year in several counties in Florida, in preparation for the current
election season. There is currently a high level of enquiries for new election
systems and Sequoia has several quotations under consideration. The Board is
hopeful of a favourable outcome, but in the event that it is not possible to
convert these enquiries to shipments in the final quarter of the 2002/2003
financial year, we anticipate that the business will make a small loss.
Share buy back
In May 2002, the Company announced its intention to acquire for cancellation up
to 10 per cent of issued share capital in the market place. To date, De La Rue
has acquired 10,168,000 shares or 5.2 per cent at a cost of #30.3m. The Group
has authority from shareholders to buy up to 10 per cent of issued share
capital.
FRS 17 - Pensions Accounting
The Company previously announced its intention to adopt FRS 17 for the current
year. The Accounting Standards Board has announced subsequently that full
implementation of the standard has been deferred in order for a consensus on
pensions accounting to be reached with the International Accounting Standards
Board. The Company has consequently decided to defer full implementation but
will continue to comply with the transitional arrangements.
Outlook for 2003/2004
As highlighted in the AGM statement in July, despite the current difficult
trading conditions, the Board remains confident that De La Rue's underlying
business is strong. In addition, a combination of anticipated market
developments and actions to improve manufacturing efficiencies will position the
Company to make significant progress in 2003/2004.

Luverly drop today.......lucky enough to get in on Friday

[wild bill] 14/9/2002 00:03

Language BFC

[tone] 16/7/2002 23:55

More to come off this one, expect sub £2, enjoy the Summer. Don't chase
falling bricks

[demark] 16/7/2002 22:44

Mickey Clarke in Radio 5 this evening said that DE LA RUE have to do new notes printing plates where the margin is pretty low as opposed to using the existing plates reprint the notes where margin is significantly higher. The new Euro notes coupled with single currency is having a significant impact. Loads of trade buys and o buys.
You have to be careful.
dyor

[muchos wonga] 16/7/2002 21:52

Something about a 6 month delay in new orders due to European customers delaying new orders now that they have a load of fresh notes following the introduction of the Euro. This may be the best chance for a 30% instant gain on any stock.

Jumpy market combined with a small negative comment from a solid company. It doesn't get much easier than this!

[patterbu] 16/7/2002 16:45

what happened?

[money loser] 09/4/2002 14:25

target of 500p should be reached soon.....took longer than the initially planned 4 weeks but no matter.

[skyship] 05/4/2002 10:15

Target hit @ 477p Bid - moving on to the next play. Personally like the look of AWG (already posted). What do you thing Glenn?

[skyship] 02/4/2002 10:12

Good run continues. 466-73 at the moment; and should be another 10p before a pause. It looks as though most of us are swayed by the chart on this one, so if you are into charts - have a look at Paladin (PLR)and AWG. Both offer the likelihood of a good run IMHO.

[cashflo] 28/3/2002 20:39

Well chaps, this is great stuff from de la rue, hopefully not tempting providence but 4.80 should look on the cards, patience paying off will post investtech charts later -

[skyship] 23/3/2002 00:51

Muckos Wonga - I agree with your view about the £4 level - A resistance Level in 1999/2000 and a Support level in 2002/2002. Bounced well @ £4, has broken the recent donward trendline, pulled back & now moving ahead again. Looks good for a quick 10% IMHO.

[skyship] 22/3/2002 17:41

Thanks Glenn - went to answer the door & forgot to add the chart!!

[skyship] 22/3/2002 13:07

With a Company Presentation due on the 26th; and with possible activity on the Bank of England Printing front; the Newsflow is likely to support the encouraging chart. The £4 level provided a resistance Level in 1999/2000 and a Support level in 2002/2002. The recent 235 fall from the 530 level stopped and bounced well @ £4. It has broken the recent donward trendline, pulled back & now moving ahead again. Looks good for a quick 10% IMHO.