i'm buying on the blips

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.'