i'm buying on the blips

sp has gone ballistic for pretty obvious reasons ..... is it worth buying now? ..... not that sure, not least because trading volumes look quite small, implying a lack of liquidity

You need the 3 year chart up to appreciate, the beauty of the chart.

having said that it looks a little too steep for my likes at the moment so Im hopefully awaiting a pull back and for secondary indicators to look more promising.

3 year chart



Trader Chart

Lovely breakout from a horizontal trade range going on for about a year and note, its only about 70p up from breakout the range being about 140p top to bottom so Id be looking for at the very least this kind of movement upwards.

Fundies going into 2010 are not cheap at about 14.4 P/E but lets not forget the license to print money giiven to them by the BoE and the government.

Should be a good one fingers crossed.

the 3 year chart was already posted above, but i don't think i'll be putting my money here

Nice move down today, looks like its just about hitting buy territory now.

This should be good for the company.....

7:37 AM In a move that will likely be closely watched by its U.S. counterpart, the Bank of England launches its 75B Treasury note buyback today

http://www.telegraph.co.uk/finance/economics/4971655/Bank-of-England-begins-pumping-75bn-into-economy.html

don't talk to me about getting TLW wrong!

Bank of England to boost money supply today
By Lee Wild

Date: Wednesday 11 Mar 2009

LONDON (ShareCast) - The Bank of England will effectively start the printing presses today as part of its 75bn programme of quantitative easing to boost the British economy.

It wants to buy as much as 2bn of gilts, or government bonds, from institutional investors such as pension funds.

The idea is that the central bank gets its new money into the system and into the banks, which it hopes will then lend more to cash-strapped companies and individuals.

That auction is set to start at midday, with a second due at 2pm, this time for the banks themselves.

Todays action comes less than a week after the Bank of England confirmed it would begin a 75bn programme of asset purchases and that it had permission from chancellor Alistair Darling for another 75bn if needed.

Its the first time the policy has been tried in the UK and some are calling it the last throw of the dice to save the country from an even deeper recession.

Interest rates have already been slashed to their lowest in the central banks 315-year history, leaving little room for further stimulus from rate cuts alone. Borrowing costs fell another half point this month and are down from 5% last October.

Auctions will now take place every Monday and Wednesday, with results published on the Friday.

It could take up to three months to carry out the programme, according to a statement from the Bank released last Thursday.

But the move has angered some. Ros Altmann, an independent policy adviser, explains that the plan to get the institutions selling gilts to invest the money in UK company debt instead, is not going to happen!

Institutions will switch to overseas debt or top quality bonds, but will not put much into smaller companies who desperately need the funds, he says.

Whoever is advising the government on this simply does not understand how institutional investors operate.

Featured Stock: Gold
Tom Winnifrith writes: THe price has slipped. The price of everything has slipped. But the argument stays the same. Base rates across the globe will stay close to zero for another 18 months. So there is no yield advantage in holding cash rather than gold. And Governments across the globe will be keeping De La Rue in a roaring trade. More bank notes in circulation drives down their real value. God is not making any more gold. I expect $1200 during 2009 and much higher over the next three years.

God may not be making any more gold, but there's a hell of a lot more of it in them thar hills, and it's not a consumable like fossil fuel

Yep but it 'shines' like me.

all that glisters etc .... lol

"and it's not a consumable like fossil fuel ".....

what about that which is used in tooth fillings!!!!

AND

Gold pills, I kid you not for some kinds of thyroid problems.

some of our european brethren are probably still recycling their hoard created during the war

he he LOL. now now cyners, were all Euro bods these days.

Little wonder the almerian region of Spain is doing very nicely these days........ now just remind me which nationality prevail there alongside of the spanish..... pst dont talk about the war.........basil.

Printing plenty of money for me now.

Thought the chart was a looker.

lying little digit ..... sp has only recovered 13p from yesterday's fall which itself was greater than the previous day's gain

Yep but I got in at near the very lows, check out my posting times.

Ive got this long stratergy at the moment cyners where Im only trading on stocks that are in the red......... nicely in the red on the day or previous day and its been working well over the last 4 or 5 days, SXS being the only failure so far.

Ive just gone long of Rotork and in profit already. ROR...... its fallen away like this one yesterday but pearing back loses.

Fingers crossed Ill be well in the money by the close.

I got HOC this morning aswell and doing reasonably well.

After a sideways trending range for over a year we have now broken out positively to the upside and although at first it was a little too fast for my liking we now sit on the bottom line of a uptrend channel and should go from strength to strength from here now that the earlier froth as been cleared....

De La Rue H1 significantly below last year

Paper production problems hit banknote printer De La Rue's first half results.
But the firm is maintaining its interim dividend at 14.1p despite operating profits falling to 27.8m from 51.0m and pre-tax profits before exceptional items more than halving to 23.8m from 48.0m.

Revenue for the six months to 25 September was down 17% at 209.2m and there were net exceptional charges of 7.3m (2009-10: 3.8m).

It said these represent costs of 23.3m arising from the paper production quality issue, including write off of inventories and trade receivables together with other costs relating to the investigation and rectification of these matters.

These costs are partly offset by a one-off curtailment gain of 16.0m arising from the previously announced closure of the defined benefits pension scheme to further accruals from 2013.

A profit on sale of 52.9m has been recognised following the sale of the group's holding in Camelot, the UK national lottery operator.

Profit before tax increased to 69.4m (2009-10: 44.2m) as a result of the gain on the Camelot sale.

Interest charges were reduced as a result of the lower average level of net debt.

Headline earnings per share fell by 51% to 17.2p.

Executive chairman Nicholas Brookes said: "Issues in paper production at one of our facilities have, as previously advised, had a significant impact on the group's performance during the first half.

"The board took decisive action to eliminate these issues and we are encouraged by the support of our customers and the level of orders and enquiries in recent weeks.

"The board reiterates its confidence that neither the physical security nor the security features in the paper were compromised."

Take over bid from france!

Up 24% great.

Goes ex-divi 6th July '11 (28.2p)

Thanks, skinny.

Well, let us start using this thread with the chart.
We can overlook the 'license' instead of 'licence' bit!

Greeek elections announced for 17 June, so retreat inevitable.

.

I did ask Ian top put a chart in the header of the other, more current thread - no mind.


And here they are :-

.

This thread with the header to be OK.
DLAR seems to be the silver lining amidst volatility these days.
This blog item, posted, a week earlier thAn the
Reuters report, says the same.`Should return to 1000+ before prelims.
Spain, I imagine, would have pesetas printed by Oberthur if it
came to the crunch:

http://www.ritholtz.com/blog/2012/05/de-la-rue/

Skinny, you have to admit your Drachma notes are far
more attractive than the Euroland ones.

.

Falling FTSE means rising DLAR.
Elementary, my dear Warson...I mean mnam!

.

.

In a nutshell:

http://www.guardian.co.uk/business/2012/may/29/greek-drachma-rumours-banknote-printer

28.2p divi maintained, payable on 2 August.
I think sp might retreat somewhat before Greek election, as
stiill over two weeks to go.

Retracement active now, as I thought an hour ago.

Pundit on Radio 4 Today thought it was way over-bought

I think so, too, and I am not a pundit or a guru.
My short term target would be 968.

Panmure Gordon reiterate; Hold.

Short-term target realised in double quick time.

.

mnam, I am inclined to think, after the low 960s buying
opportunity this morning and the subsequent heavy drop
in the FTSE, it should be heading towards 1000 very soon.
990s on the cards for today, after or even before Wall St opens,
I think!

.

mnam:

Questor/Telegraph said 'Avoid' yesterday and the sp did
declined in the morning. I think DLAR has more going for it
than the article states, but I do agree that it is too
'toppy' now and too late to buy now. Johny come lately
may 'rue' doing so.

http://www.telegraph.co.uk/finance/newsbysector/supportservices/9298723/Questor-share-tip-resist-the-urge-to-buy-a-wad-of-De-La-Rue-shares.html

mnam:

Yesterday, I think, was indicative of where this is now going
very short-term.
For the first time in weeks, it kept pace with the FTSE
when it was rising, then did not retreat when the FTSE fell
back. However, seems to react more to Wall St than FTSE of late.

Good rise this morning too. I think, if it stays at
that level, 1020s again is a distinct possibility.
Looming Greek elections a consideration, of course.

.

But would it want to sell in its 199th year?
Then again, if the price is right, and
it being a 'money' firm. money will come first.

.

.

Well, you gave whiskers a German name, Herman...didn't you?

.

Now, we're talking.

.

Who, What, Why: How would Greece switch currencies?

Political change within days in Greece may mean the country has to ultimately leave the euro. If that was to happen, how would they go about introducing a new currency?

FORTRESS PAPER PROVIDES
LANDQART OPERATIONAL UPDATE

VANCOUVER, British Columbia, June 7, 2012 – Fortress Paper Ltd. ("Fortress Paper" or the
"Corporation") (TSX:FTP), announces that its wholly-owned subsidiary, Landqart AG, a
leading manufacturer of banknote and security papers, has had a material banknote order
reinstated. This order was unexpectedly suspended in the fourth quarter of 2011 which
negatively impacted the financial results of Landqart’s operations in the first half of 2012.

.

.

And since Thursday.....

Chart

.

Greece - more Euros - but with "x" as the identification code! :-)

.

It will take a year or so for Greece to exit.

The salaries and internal transactions will be in local currency first. Those employed by the state will starve as their money worth next to nothing. People of Greece should be informed about this before voting.

.

Moving into new territory, it seems!

Cazenove note:
De La Rue is the largest integrated producer of banknotes in the world. We believe the company has the opportunity to strengthen its market position further through investment in organic growth initiatives such as polymer banknotes that capitalise on its vertical integration and well established relationships with central banks worldwide. We have an increasingly positive view on the potential of such initiatives and on the ability of the company to execute its Improvement Plan to achieve a significant uplift in operating earnings. As a result we upgrade our rating to Overweight from Neutral and increase our price target to 1184p.
Upgrade to Overweight. De La Rue has a leading position in banknote printing and design and the manufacture of associated substrates. As one of the oldest currency providers in the world, it has a long track record of delivery in an industry that values continuity of supply. We regard the competitive landscape as well structured and rational with high barriers to entry. Long-term structural growth in demand for banknotes is likely to continue. Incremental organic growth opportunities exist, including polymer banknotes, banknote security features, further passport supply contracts and lateral diversification. In our view, the stock merits a premium valuation.
Opportunities in Polymer Banknotes. De La Rue recently launched a polymer substrate product with an ambition to develop capacity for a billion notes pa. We estimate polymer notes will add 6% to group sales by FY15E, increasing thereafter. Polymer notes are steadily gaining acceptance around the world, largely due to their superior durability. In the context of limited alternative supply, we believe De La Rue has a compelling opportunity to gain a meaningful share of the market.

16 Nov: DLAR - UBS reiterates: Neutral - TP: 975p unchanged
after recent trading update.

Interims on 27 Nov.

26 Nov: Numis reiterates: Hold - TP: 1016p a day before interims (tomorrow).

Interim Statement

HEADLINES

· Revenue up 3% to £245m with a strong performance in Solutions

· Operating profit up 5% to £33m

· Banknote print volumes up 4% to 2.9bn notes, paper volumes down 15% to 4,500 tonnes

· Group 12 month order book maintained at £248m, of which Currency orders up 7% at £195m

· Improvement Plan benefits of £4m realised in the period

Skin, you forgot the divi.

14,1p maintained. xd 5 Dec. payday 9 Jan.

I didn't forget anything - I only posted what is in the Headlines of the RNS.

27 Nov:

Investec Securities: Hold - Unchanged TP: 940p - reiteration.

Panmure Gordon: Hold - TP: 933.00p maintained.

Morgan Cazenove bullish:

Nov 28:

Citigroup: Reiterates Buy - TP unchanged: 1,055p.

HB Markets: Buy

JP Morgan Cazenove: Reiterates Overweight - TP up from 1,126p to 1,140p

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9732408/Bank-of-England-launches-1bn-banknote-battle.html

http://www.telegraph.co.uk/finance/newsbysector/supportservices/9747285/Sunday-Interview-To-be-the-provider-of-your-countrys-currency-we-are-rightly-very-proud-of-that.html

StockMarketWire.com
Banknote printer De La Rue's trading since the end of September has been in line with the board's expectations.

And it says that, as previously announced, financial results for 2012-13 are expected to be similar to the previous year.

The currency division is expected, based on customer shipment requirements, to produce c6.4bn banknotes and c9,000 tonnes of banknote paper for the financial year.

Order intake has been satisfactory with some of the delayed orders referred to in the November trading statement having been received though with others still to be confirmed.

As anticipated, the banknote paper market remains challenging, reflecting the introduction of additional capacity by other manufacturers, with continuing evidence of pricing pressure. De La Rue says the solutions division continues to trade satisfactorily.

And it says the 'improvement plan' is progressing well with the process improvement, procurement and facility optimisation programmes all on track to deliver their target savings. The board remains confident of delivering the 'improvement plan' which has a target 2013-14 operating profit in excess of £100m.

Investec Buy 963.75 960.00 1,050.00 Upgrades

All seems pretty good to me, but the market wasn't that impressed, though it is a 'down day' today across the markets.

StockMarketWire.com
Banknote printer De La Rue's reported pre-tax profits rose by 57% to £51.5m in the year to 30 march.

Revenues were down 8% at £483.7m but operating profitds edged up at £63.2m from £63.1m as margins improved to 13.1% from 11.9%.

Underluing pre-tax profits rose by 2% to £59.1m and the dividend is maintained at 42.3p per share.

Chief executive Tim Cobbold said: "De La Rue delivered an operating profit of £63m, in line with the prior year, despite a much more challenging banknote paper market, which has also had some impact in the printed banknote market.

"Overall order intake reflected the difficult market conditions and an historically low level of overspill volume available to the commercial producers. It was also impacted by the previously announced delay to a number of important orders, some of which have since been received.

"We continue to make good progress in cost reduction as part of the Improvement Plan and are now targeting annual savings of £40m, £10m higher than the original Improvement Plan target.

"We enter the new financial year with increased cost savings identified and a strong pipeline of order opportunities, more than 10 per cent higher than at the same time last year. Whilst these opportunities must be secured for delivery in the year, the board remains confident of achieving the 2013-14 Improvement Plan target of an operating profit in excess of £100m."

Prime Markets Buy 966.25 986.00 1,010.00 1,010.00 Reiterates

HC: Market may be reacting to news about orders.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10086021/De-La-Rue-increases-cost-cuts-as-profits-rise.html

Panmure Gordon - Reiteration: Hold - TP: 932p

.

Numis Add 949.25 945.00 1,009.00 1,070.00 Upgrades

I missed this earlier.

Trading Update

De La Rue plc (DLAR.L/DLAR.LN) is today updating the market on trading for the six months to 28 September 2013 and its outlook for the remainder of the current financial year.

The Group's performance in the first half of the current financial year was in line with expectations with Group operating profits estimated to be c£39m, up 18% on the six months to 29 September 2012, on marginally lower revenues. This improvement, despite more challenging trading conditions, reflects the good progress made on the ongoing cost reduction programme which is on track to meet the targets for the year.

Within the Currency division, banknote print volumes in the first half were down 10% at 2.6bn notes while banknote paper volumes increased by 4% to 4,700 tonnes notwithstanding the challenging market. The continuing overcapacity in the banknote paper market has led to a worsening pricing environment in the printed banknote market with recently confirmed orders, for delivery in the second half of 2013/14 and in the 2014/15 financial year, reflecting this pricing pressure.

The Solutions division overall has traded well with the Identity Systems business delivering a strong performance. In the Cash Processing Solutions (CPS) business the decline in the trading results seen in the second half of 2012/13 has continued into the first half of 2013/14 and as a result this business will report an operating loss in the first half. Management action to reduce costs further has commenced, but it is expected that CPS will report a loss for the full year, with a target of achieving break even in 2014/15.

The Group's 12 month order book at 28 September 2013 was £232m up £25m since the start of the year.

In light of the more difficult trading conditions in the Currency division and the CPS business, the Board considers it appropriate to guide that operating profits for the Group for 2013/14 (before IAS19 adjustments) will be c£90m. Although this is an increase of over 40% on the previous financial year it is below the three year Improvement Plan target which was to raise operating profit from £40m in 2010/11 to £100m by 2013/14.

The Board is pleased with the level of order intake in the Currency division but anticipates that the pricing environment in the second half of 2013/14 will continue throughout 2014/15.

De La Rue will announce its interim results on 26 November 2013.

Interim Management Statement

HEADLINES

· Operating profit up 18% to £39.1m

· Improvement Plan benefits of £10m realised in the period

· Banknote print volumes down 10% to 2.6bn notes reflecting the timing of shipments between the first and second half of the current year

· Banknote paper volumes up 4% to 4,700 tonnes

· Headline EPS up 24% at 25.7p

· Group 12 month order book up £25m at £232m, of which Currency orders up 14% at £180m

· Continuous improvement programme on track to deliver full year target cost savings

Citibank note:
"Cut to Neutral, £10 TP — While we remain admirers of De La Rue’s strong franchise and its shares’ optionality on geopolitical dislocation, we have to respect the change in its core currency market economics with competitor price discounting.
Currency price war — The outsourced banknote manufacturer oligopoly seems currently disrupted by price discounting originating (according to De La Rue) from Oberthur, the number three banknote print operator, which previously unsuccessfully bid for De La Rue and is now advised by De La Rue’s ex-CEO James Hussey. The industry has historically seen periods of overcapacity and price discounting (e.g. during the late 1990s) and usually it has passed within a couple of years. While it happens, however, it can be a painful experience in such an operationally geared business model.
Sensible corporate strategy — We are encouraged that De La Rue’s management team does not seem tempted to spend De La Rue’s typically impressive cash generation on strategic acquisitions (unlike some of their predecessors). Instead, the focus seems to be primarily organic around existing strengths. We expect De La Rue’s R&D banknote market leadership (50 R&D employees) to be an increasingly important EPS driver in areas such as polymer bank notes and deeper monetisation of patents and knowhow through the banknote and passport supply chains. The large Bangladesh passport contract win adds credibility to this strategy
New forecasts — Reflecting confirmation of management’s lowered financial guidance, we cut our 2014-2016E EPS estimates by 15-23%. This is principally on the back of banknote price discounting but also reflects a poor period of sales for CPS. These EPS downgrades drive a target price cut from 1055p to 1000p. With insufficient ETR we lower our rating to Neutral."

CEO resigns.

Ex-divi wed 2nd July (28.2p)

Rising quietly.

Nice chart.

Recent Broker recs :-

25 Jul 14 Numis Add 749.50 845.00 845.00 Upgrades

24 Jul 14 Investec Buy 749.50 915.00 915.00 Reiterates

New CEO

Aug 31: Numis: Add - TP held: 845p

Preferred bidder for new BoE 10-year contract

Sept 8: Investec; Buy - TP: 915p

Sept 18: Citigroup: Neutral - TP: 820p.

StockMarketWire.com
De La Rue (DLAR) has forecast that profits in the current financial year will be around £20m lower than those in 2013/2014.

As a result it has said it is looking to cut the dividend that will be paid.

It says that overall the Group's performance for the first half of the current financial year will be broadly in line with the Board's expectations at that time. However, trading conditions across the Group have deteriorated such that expectations for the current and next financial year are now lower. In the previous financial year underlying profit before tax was £77.3m but based on recent orders and current trends within both the currency and solutions divisions the Board expects the current difficult market conditions to continue into the 2015/2016 financial year.

The effect of the more recent pricing pressures together with certain contractual price reductions, which will come into effect in 2015/2016, on a number of long-term contracts will impact margins and profitability further.

In light of this more difficult trading environment the Board says it intends to reappraise the level of the company's dividend for the full year and expects to announce in November an interim dividend of 8.3p per share (2013/14: 14.1p).

Philip Rogerson Chairman said: "While disappointing to announce this trading update De La Rue, as the market leading banknote printer, remains a strong, profitable and cash generative business. We will continue to pursue efficiency gains, invest in the business and in R&D for the future."

Share price decimated .

Sept 26:
Investec: Hold - TP: 600p
Numis: Hold - TP: 540p
JP Morgan: Underweight - TP: 600p

HARRYCAT - FWIW, IMHO,
[DLAR] may recover as others have suggested, but the message appears to be a LT profit reduction with 2016 " . . . and probably further" - so I expect to see a gradual slide as the regular investors fall away. That's not to say there won't be a sp recovery - Markets will likely to bounce wildly - and who knows - a Bid might be rumoured!

10-year new contract with BoE signed

StockMarketWire.com
Banknote printer De La Rue's revenues and underlying profits fell in the six months to 27 September.

Revenues were down 8% at £214.9m while underlying operating and pre-tax profits fell by 31% and 37% to £26.6m and £20.6m respectively.

Reported pre-tax profits were down 36% at £18.1m.

Chairman Philip Rogerson, Chairman said: "While market conditions have resulted in lower revenues, we have partially mitigated the impact in the first half through cost savings from operational efficiencies and have commenced a further rationalisation of our manufacturing footprint.

"As previously announced, we expect the challenging trading conditions within the currency market to continue and this, together with lower than expected new business in our Solutions division, has impacted our outlook for 2014/15 and 2015/16.

"The Board continues to believe that, while current conditions are tough, De La Rue remains a strong, profitable and cash generative business in a market with good medium and long term growth prospects."

Nov 25: Investec : Add - TP: 560p

StockMarketWire.com
Banknote printer De La Rue reports that trading in the period since 27 September has been in line with revised expectations with all the forecast currency orders, for production and shipment in the current financial year, secured.

The board continues to expect that the group's operating profit for 2014-15 will, as previously announced, be approximately £20m lower than the underlying operating profit of £89.3m reported for 2013-14.

De La Rue also announced that group finance director Colin Child intends to stand down at the annual general meeting on 23 July. Head hunters will be appointed to commence a search for a new FD and assist the nomination committee to identify suitable internal and external candidates.

Chairman Philip Rogerson said: "On behalf of the Board and all his colleagues at De La Rue I would like to acknowledge and thank Colin for the very significant contribution he has made to the Company. During his five years with De La Rue Colin played an important role in the achievement of improvements to the business and took on additional responsibilities during periods of management change. He leaves with our very best wishes."

Jan 29:
Numis : Hold - TP: 540p
JP Morgan: Neutral - TP: 580p
Investec Add - TP: 560p

Greek saga giving DLAR a lift!

Time to roll these out again?

Are these from your private collection, skinny ...last one certainly
more attractive than any of our notes. DLAR waiting in the wings.

No - the power of google.

I first posted them in May 2012 - maybe this time......

Bid rumours

Mar 19: Citigroup: Neutral - TP: 490p

New polymer £5 note in Scotland from today

Nice big gap on the chart to fill .....plus a nice divi in May? (Divi not yet announced that I can see).

Normally announced end of May and paid August?

StockMarketWire.com
Bank note printer De La Rue's revenues fell to £472.1m in the year to 28 March - down from £513.3m last time but in line with its revised expectations.

Underlying operating profit fell to £69.5m from £89.3m and underlying profit before tax dropped to £57.7m from £77.3m. Reported profit before tax of £38.9m was down from £59.8m.

Chief executive Martin Sutherland said: "These results are in line with our revised expectations and include the benefit of further operational efficiencies. However, these have been outweighed by the impact of the challenging market conditions on revenue and operating profit across the group.

"In my first seven months, I have strengthened the leadership team and restructured the organisation to better align the business with its strategic needs as well as initiating a number of actions to achieve substantial cost savings which will be largely reinvested in the business to drive growth.

"I have completed a review of the business and formulated a clear strategic plan to deliver growth and improved profitability in the long term through a greater focus on customers, innovation and delivery."

Another gap to fill Harry!

JP Morgan Cazenove Neutral 500.40 580.00 570.00 Retains

Investec Hold 500.40 560.00 540.00 Downgrades

Yep, fairly glad I stayed out, but not much to attract me in at the moment.

(No idea why this is bold as haven't activated B feature)

That will be my previous post - now corrected!

I thought Oberthur would have come back after its first failed bid
four years ago.

A reminder - Financial Calendar

Investec note today:
"Full year profits are ahead of our and consensus forecasts in what has been a very challenging year. The cautious outlook does not give us any comfort that the headwinds, especially in Currency are easing, and note that the current Euro weakness against the US dollar is aiding European competitors. The proceeds from new cost saving initiatives will be reinvested to provide some much needed revenue growth. As we did in FY15, we conservatively downgrade our EPS forecasts due to lack of visibility. We move to Hold.
Trading: Full year revenue decreased 8.0% to £472.1m, below our estimate of £497.4m and consensus (£497.5m) with Currency revenue representing the majority of the gap. This has been offset by higher operating margins, at 14.7% (-200bps y-o-y and +120bps above our forecast) to result in an adjusted operating profit of £69.5m, ahead of our forecast (£67.0m). Lower interest and tax costs cause adjusted (and fully diluted) EPS to be 6.5% ahead of our estimate at 44.5p (we had 41.8p, consensus: 43.5p). Net debt ended the period better than expected, at £111m, aided by lower capex spend (we had £114m).
Outlook: The 12 month order book, on a new revised basis, which includes estimated call-off orders for material contracts, was £243m, down 21% y-o-y, but still provides a good level of coverage. Pricing in recent tenders continues to reflect on-going challenging markets which continue to suffer from over-capacity and the current Euro weakness is aiding European competitors. Positively, the dividend in FY16 will be maintained at 25p providing yield support.
Forecasts: Taking the cautious outlook and making only small adjustments to our existing low revenue growth rates and margins on the lower FY15 revenue outturn results in a downgrade to our FY16E EPS of 8% to 33.5p. With improved visibility into the interims, this could prove to be conservative.
Valuation: Our TP declines 20p to 540p reflecting lower CY15E and CY16E EPS forecasts and the 10-year average 12m forward PE declining to 14.8x."

Bank of Scotland new polymer £5 and £10 notes to be printed by DLAR

Re post 113 - gap filled.

xd 2 July 16.70 p payday 3 Aug

De La Rue launches the next generation of identity management solutions

Chairman: Order book has increased substantially

StockMarketWire.com
Banknote printer De La Rue posts underlying operating profits of £18.9m for the six months to 26 September - down 29% on last time.

Revenues were 5% lower at £204.8m and operating margins fell to 9.2% from 12.4%.

The group said the results were slightly ahead of expectations and its full year forecasts are unchanged.

Highlights:
· Group 12 month order book up 37% year-on-year at £405m, though market conditions remain volatile · Print and Paper volumes better than expected, benefited from large overspill contracts · Progress on Polymer marked by significant three-year contract · Launched first software solution for both Identity and Security Products, and secured first customers · Reorganisation complete with new CFO on board; functional structure in place to support delivery of strategy; net headcount reduction of 6% · Manufacturing footprint review near completion, expect more than £13m of annual savings from 2018/19, <£30m capex investment and £8m restructuring cost over next two years · 'Root and branch' review initiated to address CPS poor performance · Interim dividend maintained at 8.3p Chief executive Martin Sutherland said: "De La Rue's half year performance has been better than expected. The Currency business has shown strength and resilience against the ongoing volatile market conditions. Identity and Security Products have also progressed well with the launch of the first digital solutions. However, the overall performance was dampened by the poor results in CPS. Our success in winning large overspill orders in the period has strengthened the Group's order book, which gives us confidence and visibility for our full year performance. "Implementation of the five year plan we set out in May is now well under way. We have restructured the business to support the delivery of the strategy and increased investment in product development and new technologies. Our review of the manufacturing footprint to improve efficiency and reduce costs is near completion and we will provide more details in the coming weeks. Whilst it will, of course, take time to deliver the full potential of the strategy, we are pleased with the progress made at this early stage."

StockMarketWire.com
Banknote printer De La Rue expects underlying operating profit for the year ended 26 March to be around GBP62m which is above previous forecasts.

Full year revenue for the group has been broadly in line with expectations.

The higher level of operating profit has been driven mainly by strong operational outperformance on certain contracts within the Currency business. Identity Solutions and Product Authentication and Traceability (PA&T, formerly Security Products) have been trading broadly in line with expectations.

Net debt at 26 March was GBP5m lower than at the end of the prior year at GBP106m.

Taking into account the above outperformance in the second half of 2015-16 the board's expectations for 2016/17 remain unchanged.

The broup will issue its 2015-16 full year results on 24 May.

StockMarketWire.com
Banknote printer De La Rue has completed the sale of Cash Processing Solutions Limited and related subsidiaries (together 'CPS') to CPS Topco Limited, a company owned by Privet Capital. CPS is one of the market leaders providing cash processing hardware, software and associated services used in banknote processing to manage banknote production, cash in circulation and the maintenance of banknote authenticity, condition and fitness.

Following an extensive review of the business, De La Rue has concluded that cash processing is non-core to the Group's business and that CPS does not fit in its current product portfolio and growth strategy.

In the year ended 28 March 2015, CPS generated sales of £49.3m and an operating profit of GBP 0.4m. In the year ended 26 March 2016, CPS is expected to generate sales of c£34m and an operating loss of c£8m. The gross assets of CPS were £32.8m at 26 September 2015.

Under the terms of the agreement, De La Rue has received £2.1m upon completion of the transaction. In addition, a deferred consideration totalling £1.5m will be payable in two equal instalments on the first and second anniversaries of the transaction.

The Group will also be entitled to a further contingent consideration with a maximum payout of £6.5m in the event that certain performance related and event driven milestones are achieved by CPS. Taking account of associated costs, the transaction is anticipated to be cash neutral overall to the Group at completion. Separately, the Group has entered into a strategic partnership with CPS.

In relation to the sale, the Group expects to recognise a £23.4m non-cash exceptional charge in 2015/16

StockMarketWire.com
Bank note printer De La Rue reports a solid performance for the year to 26 March and good early strategic progress.

De La Rue said the full year results were in line with the upgraded expectations announced in the trading update on 13 April.

With a backdrop of challenging market conditions and significant internal changes, the Group has made good progress in the first year of the five year strategic plan which aims to focus the business into growth markets while driving operational efficiency.

The Group has strengthened the 12 month order book to £365m (2015: £226m) as at the end of the period. Revenue in Currency product lines, encompassing Banknotes, Banknote Paper, Polymer and Security Features, grew 11% whilst underlying operating profit was up 9%. These increases were primarily driven by higher banknote volumes, partly from overspill orders, and from greater operational efficiencies. As previously announced, a material security features contract which contributed annual revenue of c£30m came to an end during the year. There was encouraging progress in Polymer with the winning of a significant three year contract and the doubling of the number of customers to 14 issuing authorities. The Currency product lines' closing order book was up 85% year on year. Identity Solutions has performed as expected with lower revenue and margin due to a contractual reduction in contribution from a large contract. With the launch of our first identity software solution DLR Identify", we have strengthened our digital and service offerings which will help us to capture a larger share of the passport value chain. Revenue in Product Authentication & Traceability (PA&T) was flat year on year with higher margins due to cost savings from the Dulles site closure. Cash Processing Solutions (CPS) continued to underperform in the second half. Following the 'root and branch' review of CPS, it has sold the business.

On a pre disposal basis, group revenue grew 3% to £488.2m (2014/15: £472.1m). Underlying operating profit fell by 10% to £62.5m (2014/15: £69.5m), mainly due to a loss of £7.9m in CPS (2014/15: profit £0.4m). Underlying profit before tax was 13% lower at £50.4m (2014/15: £57.7m) and underlying earnings per share decreased to 41.0p (2014/15: 47.9p).

On a continuing operations basis, group revenue was up 7% to £454.5m (2014/15: £422.8m). Underlying operating profit increased by 2% to £70.4m (2014/15: £69.1m). Underlying profit before tax was £58.5m (2014/15: £57.5m) and underlying earnings per share were up 4% to 48.1p (2014/15: 46.1p). On a pre disposal basis, net exceptional charges before tax in the period were £29.6m (2014/15: £18.8m) of which £26.0m related to the CPS discontinued activities (more fully described in notes 3 and 4). As a result, profit before tax was 47% lower at £20.8m (2014/15: £38.9m).On a continuing operations basis, profit before tax was up 35% to £54.9m (2014/15: £40.6m).

Chief executive Martin Sutherland said: "In the last year we have made good progress against our five year strategic plan to transform De La Rue into a technology-led security product and service provider. We have reorganised the business structure, increased investment in product development and new technologies, and successfully completed a manufacturing footprint review.

"Our Currency product lines have performed very well during the year. I am particularly pleased with our progress in Polymer which is a large and growing market. We have doubled our customer base in Polymer over the last year, including securing our first volume customer, and as the only vertically integrated polymer substrate manufacturer, we are well placed to continue to capture this growth opportunity.

"CPS continued to underperform in the second half of the year. Following a 'root and branch' review, we decided to exit the business and have now completed the sale.

"Looking ahead, whilst there is more to do, I am pleased with the progress we have made in the year and I am confident that the right foundations are now in place to develop a more balanced business portfolio and increase profitability. Our 12 month closing order book of £365m provides good visibility for the year ahead. Whilst, as previously announced, a material contract came to an end, we are confident that we can mitigate the impact and our expectations for the current year are unchanged."

StockMarketWire.com
De La Rue reports a solid first half performance underpinned by strong order book and good strategic progress.

Group revenue was flat at £189.5m (H1 2015/16: £188.7m) in the first half. Underlying operating profit was up 2% at £24.0m (H1 2015/16: £23.6m).

Underlying profit before tax increased by 3% to £18.2m (H1 2015/16: £17.6m) and underlying earnings per share was 4% lower at 14.0p (H1 2015/16: 14.6p). Exceptional net charges in the period were £1.0m (H1 2015/16: exceptional net gains of £7.5m), consisting of £1.6m site relocation and restructuring costs which were offset by £0.5m income relating to release of warranty provisions and a £0.1m gain from a land sale.

This resulted in profit before tax of £17.2m (H1 2015/16: £25.1m), down 31% year-on-year.

Underlying operating cash flow, comprising underlying operating profit adjusted for depreciation and the movement in working capital, was £25.0m (H1 2015/16: £61.1m). Net debt at 24 September 2016 was £115.5m up £9.4m since the year end mainly due to an adverse working capital movement. Inventory increased in preparation for sales in the second half of the year.

An interim dividend of 8.3p has been declared for the half year ended 24 September 2016 (H1 2015/16: 8.3p), payable on 11 January 2017 to shareholders on the register on 9 December 2016.

Chief executive Martin Sutherland said: "De La Rue's half year results are in line with our expectations. The Currency business has shown strength and resilience despite the impact from the conclusion of a material contract last year. Both Banknote Print and Banknote Paper have performed well with increased volumes.

"De La Rue continues to make good progress against our 2020 strategic plan. We have further strengthened our position in the fast growing East Africa region through the agreement to form a joint venture with the Government of Kenya. I am also pleased with the progress in Polymer where we have secured a second volume customer. We now supply polymer substrate to 15 issuing authorities, representing c40% of total polymer customers. Although the contribution to the Group from Polymer is still small, we are optimistic about its potential growth in the coming years.

"In non Currency businesses, we have secured two multi-year Identity Solutions contracts and gained early traction in the enterprise market for Product Authentication and Traceability.

"While we expect little impact in the current financial year, as a major UK-based exporter with more than 80% of our revenue from outside the UK, we believe that we would benefit from a sustained weakness of Sterling. We are also encouraged by our 12 month closing order book of £409m and the early strategic momentum in the key future growth areas. We remain confident of the business' outlook for the rest of the year and beyond."

Ex-divi today (8.3p)

StockMarketWire.com
Banknote printer De La Rue expects full year underlying operating profit to be above the top end of the market consensus.

The group said this outperformance had been driven by good growth in Identity Systems and Product Authentication & Traceability product lines.

It said the currency business had performed in line with market expectations.

It also said that full year revenue for the group was in line with market forecasts.

JP Morgan Cazenove today reaffirms its neutral investment rating on De La Rue PLC (LON:DLAR) and raised its price target to 700p (from 670p)

StockMarketWire.com
De La Rue has been awarded a 10-year contract by the Bank of England to supply the base material for its new polymer £20 notes.

De La Rue already has the contract to design and print the notes, which will be issued in 2020.

Under the terms of the contract, De La Rue will supply the Bank of England its Safeguard polymer substrate for 25% of the first call-off volume.

De La Rue said that based on estimated timings, production for this contract was expected to commence in the financial year of FY18-19.

StockMarketWire.com
De La Rue's revenues rose by 29% to £244.7m in the six months to the end of September.

Adjusted operating profits rose by 11% to £26.6m and reported operating profits were up 7% at £24.6m.

The dividend of 8.3p per sharee is unchanged from last time.

Chief executive Martin Sutherland said: 'De La Rue has performed well in the first half, driven by strong growth in the Currency business and we have continued to make good progress against our strategic plan.

'Polymer has reached a significant milestone with the award of a 10 year contract to supply our polymer substrate Safeguard for the Bank of England's new £20 note.

'DLR Analytics, our cash cycle management software launched in May this year, has gained more traction.

'More than 60 central banks have now signed up to the pilot programme, further strengthening De La Rue's position in the industry.

'R&D investment has increased by 33% in the first half as we continue to invest in new products and capabilities. Product Authentication grew by 20%, driven by De La Rue Authentication Solutions which is performing to plan.

'The strong revenue growth in the first half, driven by high volumes of lower margin Banknote Paper and Print orders, reflects the lumpy nature of contracts.

'Performance in the second half is expected to be broadly in line with the same period last year.

'Overall, our outlook for the year remains unchanged.'

The group also announced that the pension trustee had decided to change indexation of future increases from RPI to CPI for its UK defined benefit pension scheme, effective from April 2018. The group said this change was expected to reduce the scheme's liabilities and corresponding deficit by c£70m on an accounting basis, which would be reflected in the 2017/18 full year financial accounts. The scheme has been closed to new members since 2010 and to future accrual since 2013.

De La Rue secures strategic relationship for its paper business
1 February 2018
· Significant milestone in delivering our strategy to transform De La Rue into a less capital intensive, technology-led product and service provider

· Strengthens De La Rue's balance sheet and enables further investment in innovative technology solutions for the currency, identity and brand protection markets

· Secures long term paper supply for De La Rue's print requirements with a ten year supply contract

· Limits De La Rue's exposure to the external paper market

De La Rue plc ("De La Rue" or the "Group"), the world's leading security and anti-counterfeiting provider for banknotes and personal identity, today announces that it has entered into a strategic agreement with Epiris Fund II ("Epiris") for the Group's paper business, comprising the Overton paper mill and the Bathford paper mill, and to be named Portals De La Rue Limited ("Portals De La Rue").

Under the terms of the agreement, Epiris, together with management, will acquire a 90% shareholding in Portals De La Rue through a newly formed company WhickerCo Limited, for a cash consideration of c£61m payable upon completion. This equates to an enterprise value of £68m and a multiple of 12.8x average adjusted EBIT 2015-18. De La Rue will retain the remaining 10% interest.

StockMarketWire.com
De La Rue said Thursday it missed out on the contract to print the UK's new post-Brexit blue passports but insisted that this would not have an impact on the performance of the current and next financial year.

The current 10-year contract with Her Majesty's Passport Office (HMPO) - due to expire in July 2019 - had a total value of roughly £400m.

'The company is disappointed with the outcome of the tender process and will now consider its options including an appeal,' De la Rue said.

That was not the desired result, so do as the EU do and resubmit the tender process stipulating that all persons involved in the passport printing, storage and transport must be UK citizens with full security clearance. I was going to add must also read and speak english fluently but that might disbar many at D L R, so we'll skip that bit.

you'll find nearly all dutch speak fluent english, and why should we get protectionist while complaining about trump?

A fluent english requirement would give an unfair advantage to the dutch, after all who outside Holland bothers learning dutch? My comment was intended to be tongue in cheek. I am less worried about who is printing the passports than who is dishing them out.

StockMarketWire.com
De La Rue said Wednesday adjusted operating profit fell 11% in the year to the end of March as the loss of revenue from its exited paper business, increased investment spend and costs associated with its failure to win the contract to print out the new blue UK passports weighed.

Adjusted operating profit fell 11% to £62.8m, while group revenue rose 7% to £493.9m. Excluding the exited paper business, group revenue was up 4% to £426.4m and adjusted operating profit was up 7% to £56.9m.

'Solid growth in all segments has been offset by strategically focused increases in investment in R&D and sales, which will drive long term sustainable growth,' the company said.

Higher volumes in both banknote print and paper were the main drivers for a growth of currency revenue of 2%, excluding the exited paper business.

The identity solution segment generated 4% revenue, while product authentication & traceability revenue jumped 31%.

Adjusted earnings per share fell 9% to 42.9p, while reported earnings per share rose 99% to 93.7p.

The cash proceeds from the sale of its paper business of £60.3m reduced net debt to £49.9m from £120.9m the previous year.

The group 12 month order book at March 2018 excluding paper orders rose 6% to £363m, compared to the previous year.

A final dividend of 16.7p per share was recommended, unchanged from the previous year.

'The sale of the paper business and the associated long term paper supply agreement have reduced our exposure to the volatility of the oversupplied paper market, while securing the surety of supply for our print business,' said Martin Sutherland, Chief Executive Officer of De La Rue.

'Through this, and good cash generation from the business, we have significantly strengthened our balance sheet with net debt now at its lowest in five years. The stronger balance sheet provides the Group with greater flexibility to allocate capital to deliver long term shareholder value.'

StockMarketWire.com
De La Rue said Tuesday it was confident of meeting its expectation for the full year despite reporting first-half profits fell sharply, as the loss of revenue from its exited paper business continued to stifle performance.

For the six months ended 30 September, reported operating profit fell 59% to £10.1m and revenue rose 5% to £257.6m.

Excluding the impact of the exited paper business, group revenue was up 9% to £242m and adjusted operating profit was down 31% to £17m.

Net debt of £94.3m was above expectations, which the company blamed on timing of deliveries in the half year.

Following a strategic revenue review, the company said it would 'refocus our identity business on the supply of higher margin security features and components.'

The company proposed to leave the dividend unchanged, recommending an interim dividend of 8.3p a share. 'We continue to make progress in delivering against our strategic plan to transform the Group into a less capital intensive, more technology led business,' said Martin Sutherland, Chief Executive Officer of De La Rue.

'Over the last six months we have conducted a thorough review of our strategy and market positions. In the light of the UK passport decision, we have concluded that we will refocus our identity business on the supply of higher margin security features and components.' 'We believe we can continue to drive cost efficiencies across the Group and achieve growth in Security Features, Polymer and PA&T. We expect our PA&T business to double in size within the next three years.' 'We maintain a strong order book and pipeline which provides good visibility for the second half of this year and into next year. With good revenue coverage from the Group's 12 month order book of £365m and based on the orders planned for production and shipment in the second half, we are confident that we will meet our expectations for the full year.'