i'm buying on the blips

.

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