De La Rue Share Discussion Threads

[ltinvestor] 08/6/2020 10:06

Shorts getting squeezed?

[hamhamham1] 08/6/2020 09:43

Money is so cheap at the moment, traditional financing likely, or bonds.
But I don't think they will need any.
This company supplies to govs, best paying customers in the world.

[wapper] 08/6/2020 09:21

Irrespective of what anyone thinks about this Company (and I think it's a great opportunity for a short term capital growth) we should see a steady rise as results on 17th approach unless markets in general capitulate. Momentum has stalled as day traders moved on to faster rising stocks. They will be back soon IMO and I'm as certain as I can be that 17th will bring news that Balance sheet is fixed and even if it means a fundraising then all I can say is that markets will be relieved and recently a lot of similar fund raising have seen a very short markdown quickly followed by decent rises. GLA holders.

[ltinvestor] 08/6/2020 09:04

The new CEO has implemented a cost cutting plan to improve competitiveness and attract even more business.Margins will also be increased especially in the Authentification business.The Turnaround plan he implemented appears to be working and I am sure more will be revealed with the results.I do not see a fundraise as a bad thing and feel it would be welcomed and supported by the institutions...

[elsa7878] 08/6/2020 08:16

At interims currency orders covered 70% of capacity for 20/21.
Order book for the year was at £200 million. Now at 80%. So assume year total of £300 million. Margins mid-teens. OP = £45 million.
Authentication: last year turnover 40 million - this year £70 million. OP mid-teens = £15 million

So OP £55 million.
Interest at least £5 million.
PBT = £50 million.
Tax at 20% = £40 million.
Capex has been £20 - £25 million a year.
Pension payments £20 million.
Where's the excess to pay off the debt??
If currency could run at £400 million then that extra £15 million would help but shows how precarious the finances are.
Interim debt £105 million. Stated £17 million of costs to improve returns = debt of £120 million. On the basis of the above it's hard not to believe that the banks will ask for an equity raise. £50 million should be a minimum.
If anyone knows any better please correct me.

[hamhamham1] 06/6/2020 07:54

When the AA get back to 9p divi per year again, then 3 years of divis will pay for the purchase at these prices.
I gonna reinvest the divis when they come back, grow grow, grow!!!

[hamhamham1] 06/6/2020 04:35

Knowing. Was on the AA. board and someone was talking highly of you there!

[knowing] 05/6/2020 16:18

This one can wait a little longer. Having fun with CPI and MAI today

[hamhamham1] 05/6/2020 16:16

I picked up some Lamprell a week or so ago.
They just gone nuts in 5 mins

[action] 05/6/2020 13:56

Will this dog wake up by Monday?

[hamhamham1] 05/6/2020 13:39

US non farm payrolls, 2.5m jobs created, markets gonna fly into the weekend maybe?

[imastu pidgitaswell] 05/6/2020 10:53

Start of week up by 200% on day 1 to 120, and a further 50% intraday (on the day closing price) to 180. 40p to 180 in less than 2 days. And you're wondering why it is coming down?

Feels another lifetime, even though it was this week.

All out by Wednesday, 7 separate sales, first at 172 (wouldn't go through at 180, surprise...), average around 162. Was a bit annoyed at the time, but obviously not now.

Somebody will be along shortly with hugely negative target price...

[action] 05/6/2020 09:09

The whole market is on fire. This one is down??

[dealy] 04/6/2020 09:22

clearly the surge to 179p was caused by frantic short covering. At the same time, any major dips from here will probably be bought by eager investors. Need to get the "funding options" cloud lifted on results day to move ahead I think.

[sif12] 03/6/2020 16:37

Thanks Imastu.. i went back and read some of the news articles from earlier this year around half year.. they were on the verge. But now improved net debt from £170m to £100m. They have a £250m loan up next year I think? Hard to say, whether they would place. Not really worth it at this MCAP is it?

[imastu pidgitaswell] 03/6/2020 13:39

It was the reference to financing options in their announcement on 6th May about delaying their annual results.

"This date has been agreed in consultation with the Company's auditors, Ernst & Young LLP. Further details on the Company's Turnaround Plan, including an update on financing options, will be communicated with the full year results."

Might mean anything from a placement to just renewing bank facilities (which need renewing pretty soon). Also possibly both, as they two things are often related - better banking facilities if they have a successful equity raising.


Meantime, we're at 120, Monday's closing price. Edit - but not for long...

[hamhamham1] 03/6/2020 13:35

NY Boy, get back in? When were you in? I guess you.may read my posts.
Now you want to get in for the first time, but trying to trash the share price so you can buy low. Hilarious :)

[sif12] 03/6/2020 13:31

NY Boy, where was it mentioned before..?

I read through all the recent RNS' couldnt see any mention. Im not holding, only watching. but looking at entry points.

[phurley] 03/6/2020 13:28

Tried all my contacts - no one knows anything of a placing

[ny boy] 03/6/2020 12:56

I feel it’s been pumped up for a placing but it over shot to the upside, pretty sure they will raise, it was mentioned before, many companies are taking advantage of favourable bullish conditions to raise monies.

No idea where the level is but the market will try and work it out, I am on the side lines for now but watching with interest GL

[imastu pidgitaswell] 03/6/2020 12:22

Don't disagree, and maybe seeing things that aren't there - we just don't know.

But we will in a couple of weeks.

[sif12] 03/6/2020 12:16

But is there any actual evidence to suggest they need to place?

do they have debt maturing? terms up for renewal?

Can they meet their current payment schedules?

the issue with placing is unless its genuinely to expand, paying down debt and definitely the very vague 'working capital' means the funds are absorbed and arent reflect in the share price .. ie share price wont necessarily react favourably.

[deanmatlazin] 03/6/2020 11:39

Any price lower than £1 is unacceptable. More dilution to shareholders . I wish they announce the placing ASAP!!!!

[elsa7878] 03/6/2020 11:34

They had net debt of £105 million at year end. This is invariably a flattering figure as they always make it look better for the year end accounts. An average figure over the year would have been more helpful.
They then stated £17 million of reorganisation cash costs.
So absolute best scenario is debt of circa £120 million but could be closer to £140 / 150 million.
Should do a minimum raise of £50 million.
Now the price is up and will approach the market and raise - think £1 seems reasonable.
I would look very closely if they did.