i'm buying on the blips

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.