De La Rue Share Discussion Threads

[boadicea] 24/4/2003 13:06

I notice that Schroder (16%) and Silchester (15%) have both been adding in past months, which all adds up to a pretty large chunk. (See the relevant SAR declarations.)
Monty - Your hope of longing at ~150p is beginning to look unlikely. Did you get in below 200p anyway?
However, I can find no published reason for the recent rise.

PS. What happens when a company's buy-in of its own shares for cancellation pushes an existing holder over a notifiable/actionable threshold %wise?

[monty burns] 27/3/2003 10:30

Thought about that too, but the same reasons that make me think of longing it stop me from shorting. I don't believe it will stay below 200 over the medium term, but it could fall further once this reorganisation stuff gets out - but then it may not and takeover (low debt, hence attractive target) could loom.

I guess I'm hoping for a fall to 150-ish before going long.

[wild bill] 27/3/2003 10:27

worth shorting?

just spoke to an employee, hive of activity down there today......

[monty burns] 27/3/2003 09:40

Thanks, also noticed later that Merrill Lynch (I think) downgraded forecasts, so that's that in this market. I'll avoid for now.

[wakeland] 26/3/2003 19:01

Monty - there has been an internal organisation announcement today ( I have read it ), ....this is not a deramp and I will not be posting again as I have no interest beyond working for the Co. , but ... if I was a holder I think I would have sold today .

[monty burns] 26/3/2003 15:22

Been thinking about this for a while - low debt, PE ratio, competitive barriers to entry, customer base etc etc.

Suddenly down 9% and no news? Still thinking about it.........

[wild bill] 11/3/2003 09:05

Quiet in 'ere!

[wild bill] 20/2/2003 11:21

What do you reckon Wag?

[l2e] 19/2/2003 04:07

good morning.....even printing this stuff is hard work....whatss gone wrong here....apart from a lack of demand!....all the best

[tony14] 19/2/2003 00:16

WARNING:

RNS Number:6380H
De La Rue PLC
18 February 2003

DE LA RUE PLC

TRADING UPDATE


The Board of De La Rue announces that trading since the new year has been
significantly below expectations principally in Cash Systems and, to a lesser
extent, in Global Services. As a result, for the year ending 29 March 2003 we
now anticipate profit before tax, exceptional items and goodwill amortisation to
be in the order of
25 per cent below market expectations.


Cash Systems

In Cash Systems, despite healthy order intake across the business in December
and January, since the new year there has been a sharp deterioration in the
trading environment for the Financial Institutions business in Germany and
Spain. In Germany, we expect sales levels in the final quarter to be 50 per
cent down on last year's equivalent period, which was in itself impacted by
reduced demand arising from the completion of the euro currency change over. In
Spain, customers have postponed the delivery period of significant orders into
the next financial year. The business is taking further action to reduce its
European cost base. Other markets, in particular the USA, now the largest
single market, have performed well and in line with expectations.

In the Currency Systems unit of Cash Systems, profit will be significantly worse
than expected despite encouraging order levels in a difficult market which is
impacted by present political and economic uncertainties. Customers are
delaying orders and acceptance of delivery against important contracts.
Continued margin pressures have been exacerbated by a failure to control costs
of manufacturing during the ongoing transfer of production from the UK to the
USA and Russia, consequent on the integration of the Currency Systems
International business. Actions are in hand to address these issues.

The costs of the actions indicated above will be taken in the current year and
will be subject to appropriate employee consultation.

Global Services and Security Products

Global Services continues to experience difficult trading conditions and will,
as a consequence, make a loss in the year. In particular, timing delays on
expected projects within the Identity Systems business have impacted revenues
for the current year and changes in customer schedules have had a negative
impact on Tapes and Holographics. Rationalisation of our Security Products'
manufacturing operations and overhead reductions is proceeding to plan, the full
benefits of which will come through in the 2003/2004 financial year.

Currency

Currency continues to perform in line with our expectations and the outlook for
the balance of the year is underpinned by a strong banknote order book and a
return to historical ordering patterns and volumes of banknote paper.

Final Dividend

Underlying cash generation remains strong and at this stage the Board expects
that the final dividend will be maintained at last year's level.

-ends-


For further information please contact:

Stephen King Group Finance Director [phone]
Mark Fearon Head of Corporate Affairs [phone]
Mike Smith Brunswick [phone]
Jonathan Glass


18 February 2003

Notes to Editors:

1. De La Rue will announce its Preliminary Results on 28 May 2003


This information is provided by RNS
The company news service from the London Stock Exchange
END

[quidzinn] 18/2/2003 14:33

.... I thought DLAR have a licence to print money ..... what went wrong ?? Can't they just print a few extra million and book it down as an exeptional profit ??

Q

[mitzis] 18/2/2003 14:30

oh bly me this is one of me favorites.. down the plughole..!

[muchos wonga] 18/2/2003 14:04

Oh dear, that doesn't look so good! The chart also indicates that the price has further to fall. May buy at £1.50.

[deadbull] 18/2/2003 13:17

LONDON (AFX) - De La Rue PLC warned that full year pretax profit, before
exceptionals and goodwill amortisation, will be 25 pct below market forecasts
after trading since the beginning of the new year has been "significantly below"
expectations.
However, the group said with underlying cash generation remaining strong the
board expects the final dividend will be maintained at last year's level.
The group said Cash Systems were particularly affected as were, to a lesser
extent, the Global Services operations.
De La Rue said since the new year there has been a sharp deterioration in
the Cash Systems trading environment for the Financial Institutions business in
Germany and Spain.
In Germany, sales levels in the final quarter are now expected to be 50 pct
down on last year's equivalent period, which was in itself impacted by reduced
demand arising from the completion of the euro currency change over.
Meanwhile in Spain, customers have postponed the delivery period of
significant orders into the next financial year.
But other markets, in particular the USA, now the largest single market,
have performed well and in line with expectations, it added.
The company said it is now taking further action to reduce its European cost
base.
The Currency Systems unit will see profit significantly worse than expected
despite encouraging order levels in a difficult market which is impacted by
present political and economic uncertainties, the company warned.
Customers are delaying orders and acceptance of delivery against important
contracts.
Continued margin pressures have been exacerbated by a failure to control
costs of manufacturing during the ongoing transfer of production from the UK to
the USA and Russia but actions are now in hand to address these issues, De La
Rue said.
The costs of this action above will be taken in the current year and will be
subject to appropriate employee consultation.
Trading conditions remain difficult in Global Services which will make a
loss in the year.
Timing delays on expected projects within the Identity Systems business have
impacted revenues for the current year and changes in customer schedules have
had a negative impact on Tapes and Holographics, the company said.
Rationalisation of the Security Products' manufacturing operations and
overhead reductions are proceeding to plan, with the full benefits expected to
come through in the 2003/2004 financial year.
The group said Currency continues to perform in line with expectations and
the outlook for the balance of the year is underpinned by a strong banknote
order book and a return to historical ordering patterns and volumes of banknote
paper.

[snappy] 17/12/2002 14:49

They also do a lot of cash counting and tracking of those security vans with big bags of money so I am told.

Sounds like a license to print money to me ;-)

[patricjohnson] 17/12/2002 14:13

De La Rue - Wins the right to pring UK Bank Notes.. Should virtually double its turnover and transform the company.

[andy46] 26/11/2002 19:38

Hi

My sentiments exactly studwick. Nearly bought this morning, but my cheque hadn't reached my broker account, so no money to trade with. On the upside, my re-search worked a treat.

.......... Shame, would have been my quickest ever riser too :( I'll just go jump of a bridge.

Andy

[strudwick] 26/11/2002 10:05

oh well there goes another potential opportunity.

[impecunious] 25/11/2002 21:02

isn't the point that there have been two profit warnings already since May/June.
Suely the 25% is not a reduction on the figures achieved last year shown above ...surely it is a reduction on the already reduced forecasts for this year. This could see a forecast of 15p or worse EPS for the year to march 2003...or worse. Also, three warning in about six months will not encourage confidence.

One institution is said to have dumped about 3% of the shares last week.

I also read that they have appointed a new FD and the fear is tomorrow he will take the opportunity 'to clear the decks' before starting the job in earnest in January.

Even a share buyback going on recent months and even that has not stopped the price slumping further and further.

Think it would be a brave person to have bought today ahead of the interims.

[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)