De La Rue Share Discussion Threads

[pictureframe] 26/11/2019 07:55

30% down - market hates any mention of "going concern"

[knowing] 15/11/2019 14:18

Debt should have reduced with the recent sale of the Identity division

[buffettjnr] 15/11/2019 13:43

Yeah, add £70m debt and PFD, it’s still about 1.5x EBITDA. It’s ridiculously cheap.

[knowing] 15/11/2019 13:25

Something to ponder over your luncheon;

In the year to March 2019, De La Rue made revenues of £516.6million. Of this, £39.3million came from the product authentication business.

That unit also contributed £5.7million of profit to De Le Rue’s £60million total – though analysts expect product authentication’;s profits to increase to between £18.7million and £20.7million in this current financial year.

That could mean the product authentication business is worth up to £200million, on one analyst’s reckoning.

But De La Rue’s troubles are weighing down its shares so much that currently the whole company is valued at just over £160million.

[buffettjnr] 15/11/2019 11:29

No one wants to sell to me 164.80 :-(.

Even with the huge write-off it’s still profitable.

[meijiman] 15/11/2019 11:05

Got me thinking it might be time for a nibble. Sum of the parts/recovery/superior new management(not saying much!)....potential bid target. Hmmm

[buffettjnr] 15/11/2019 10:45

yes it's been a clown show. Fortunately we can buy in at clown show prices...it was 450p in May...quite amazing value destruction...

[meijiman] 15/11/2019 10:35

Haha. Thomas de la Rue must be spinning in his grave at the management muppetry that has gone on here. Company seems to specialize in appointing deadlegs to top positions.

[buffettjnr] 15/11/2019 10:03

First level thinking at its finest. They can buy it when it’s 350p and the business is not “in flux” and investor confidence has been rebuilt.

[speedsgh] 15/11/2019 09:47

DLAR features in today's Tempus column in The Times...



De La Rue

A company that prints a sizeable proportion of the world’s banknotes must surely be on the way out because we use cards and phones rather than real money to pay for goods, right?

Try telling that to De La Rue, which makes sterling notes for the Bank of England and euro-denominated notes for central banks on the Continent, among others, and it is — unsurprisingly — quick to argue for the resilience of cash.

The company’s website sprays out statistics including that 84 per cent of the world’s transactions are in cash, that the amount of currency in circulation increases — even in developed markets — at a faster rate than national GDP, that 11 per cent of the population survives on less than $1.90 a day and will always need to have actual money passing through their hands.

The stats are all very well, but it’s a naive investor that fails to spot the long-term trend of an increasingly cashless global economy.

De La Rue has been diversifying into product authentification, security and ID protection, in a tacit acknowledgement that its main market has a limited lifespan.

De la Rue was established in 1821 when Thomas de la Rue set up in London as a printer, stationer and producer of other specialist goods. Employing more than 2,000 staff worldwide, its biggest business is printing bank notes but it is aiming to double its authentication and traceability business to at least 15 per cent of revenues within three years.

The group has several headaches: first, an investigation into allegations of suspected corruption in South Sudan; second, a tranche of blocked payments from Venezuela that have forced it to make an £18.1 million provision; and third, an activist shareholder, Crystal Amber, which wants boardroom change.

Longstanding investors that have endured rows over unawarded passport contracts and, most recently, a profit warning will be hoping that the new management team will use a thorough strategic review to set the company on to a more stable path.

The shares, down 2¼p, or 1.3 per cent, to 168¾p, trade for 10.2 times historical earnings with a yield of 14.8 per cent. They are not appealing.

ADVICE Avoid
WHY Business in flux needs to rebuild investor confidence

[buffettjnr] 12/11/2019 15:06

He started off with a kitchen sinking exercise. So at least there is that. Always surprised how some other board members keep their positions...

[buffettjnr] 12/11/2019 14:44

Big move in the price yesterday. No follow through today

[buffettjnr] 12/11/2019 14:42

CRS increasing their holding....apologies I might be a bit late

[meijiman] 11/11/2019 15:14

with poorly managed companies potential acquirers know they can add value ...is there is a worse manged company than this? Just hope the new man is a cut above the one who 'left'

[darius12] 11/11/2019 14:40

Predators eye rich pickings at banknote maker De La Rue after share collapse leaves it ripe for a break-up



Whether or not the rumours are true we know that this company has considerable know-how and intellectual rights value - hopefully it is not sold on the cheap!

[she-ra] 11/11/2019 12:50

"early stage" usually means not true. We've been here before with the Mail and De La Rue takeover rumours. Just search De la rue on their website. You'll find plenty.

[kooba] 11/11/2019 07:14

https://www.morningstar.co.uk/uk/news/AN_1573455528950310100/press-three-firms-explore-bid-for-de-la-rues-authentication-arm.aspx

[ny boy] 05/11/2019 11:38

Unloved today and for months, this is brutal though...

analyst Russ Mould said the business model was looking ‘anachronistic in an increasingly cashless world’.

[darius12] 01/11/2019 14:14

Anyone in here for the dividend needs his head examined. I want them to stop the dividend and preserve cash while they execute the turnaround! Or possibly get sold!

[speedsgh] 31/10/2019 09:55

De La Rue turnaround will be difficult, says AJ Bell -

De La Rue (DLAR) will undergo a ‘detailed review’ after another profit warning and AJ Bell warns it could mean the sale of parts of the banknote printer.

The shares tumbled 20% yesterday after the group reported its second profit warning in a little over six months.

It has been hit by a string of issues, including a debt owed to the Venezuelan central bank, a fraud investigation, the loss of contract to print British passports, and increasing pressure from activist shareholder Crystal Amber.

Under new chief executive Clive Vacher it is attempting a turnaround but analyst Russ Mould said the business model was looking ‘anachronistic in an increasingly cashless world’.

‘Investors might be slightly concerned that no reason is given for [the] profit warning,’ said Mould.

‘A “detailed review” of the business implies some significant restructuring and even that some bits of the group might be sold off.’

The group was successfully turned around by ‘corporate Mr Fixit’ Leo Quinn, although it wasn’t long-lasting and Mould said ‘Vacher’s task could be significantly harder now’.

[she-ra] 31/10/2019 09:19

I don't think I am wrong.

[meijiman] 31/10/2019 09:00

Good post Intaglio. What is your view of this Sutherland ..he comes across as a man who tried to destroy the company...difficult to think of a more disastrous ceo. The ex Chairman is/was also highly culpable.

[intaglio] 31/10/2019 08:49

Ha Ha She-ra. No, just a regualar punter with some experience of the indstry.