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10 million buy wtf.
But hopefully still of interest to some of you out there:
www.1c-magenta.com
The author of the ShareScope article can be found https://smallcompanychampion3db.substack.com/p/de-la-rue
The initial market reaction is likely based on the revenue. It really was the only thing we did not know in advance. Just 1.8% and 5% YoY growth for currency and authentication, respectively. Note last year was poor. Some of the Market may have interpreted the RNS (23rd March) as indicating that currency revenue would be growing.
Profit is up +£12m (+60%)YoY. Good, but we knew this from an earlier RNS. It is factored in the share price. However, it is now clear that the pension contribution was just £11.4m. That is £10m less than the prior year. It could be argued that the profit gain was accomplished by temporary negotiations on pension payments. Note after 2023, £24.5m will need to be paid annually. Revenue growth needed.
They company appear content with 1.8% growth in currency. The market not so much. Glass half full, it just adds to the probability of an acquisition. A growth focused team could really add value here.
Alliance headline profits fall, Sharecast headline profits rise, proves they pick and choose the bits out of results they want to peddle.
Now that the accounts are out, there is nothing to stop someone bidding. With UDG, the offer was announced on the same day that interims came out. Lets hope that it's soon in DLAR's case. GLA
SP action is all a bit bizarre, patience they won't be getting mine for under £2.20.
Makes no sense to me why there’s more sells than buys. Thought this would take off, they’re naughty filling your buy at 2.09 and then dropping it to 1.84. That’s why I like buying with a live price in front of me. I think the buys will out weigh by the end of the day /week
I put a buy order today, sadly bought at 209 pence and now price has dropped, I can’t understand why the price has dropped despite such good results
Am I missing something in RNS
Not many company’s doing this well lately. At this rate they’ll be debt free in 2 years. Can see dividends being paid soon. Big upside to share price yet. Even a buyout???? So happy I got in back at 50p. This share has saved my bacon last year. Well Done DLAR
Someone just bought 50K shares, should have bought them last week lol, bodes well though.
we will know more tomorrow and SP is looking better today.
With long lunches back on the menu for deal- makers last week, the City rumour mill spun into action.
Amid a flurry of take-overs, one historic firm in the bankers' sights is De La Rue, founded in 1813.
The money-printer, which makes notes for the Bank of England, has looked vulnerable to a hostile bid since its stock disintegrated after losing out on the blue passport contract in 2018.
City sources claim foreign trade buyers have shown an interest.
Its boss Clive Vacher – a former police sergeant and turnaround specialist – has focused on cutting costs including closing operations in Gateshead and expanding further into polymer notes.
Sources say it has also developed digital and physical Covid certificates and is in talks with several governments about deploying them, although this is not key to the firm's revival.
Results this week should show profits hitting a healthy £37 million. Any signs of improvement on that could put buyers on high alert.
'So I say roll on Wednesday.'
De La Rue plc
GBX 196.00
8.41%
+15.20 6M
DLAR
May 24, 8:41:49 AM UTC+1 · GBX · LON · Disclaimer
That will do me, cheers for posting.
Nice comment in the Mail about profits and takeover speculation
Finals due on Wednesday.
5 weeks of virtual flatling, give it up, PI's not selling until well over £2.
looking good for 26/05/21
Nice little push to £2.20 up to results please.
Interesting, Hurricane Energy is also shorted at 2.10% just behind DLR. Crystal Amber has an 11.8% stake in Hurricane and a 15% stake in DLR according to their last statements. Not sure what to make of that. Thanks to the RNSs, we do know the good profit and debt positions of De La Rue.
The one unknown is the revenue growth. The MD of currency was promoted to the board. Re-reading that RNS, it states experience in “sales” and “has been instrumental in improving the performance of all aspects of the division.” MD’s tend to own sales, they say “sales” and they say improving “all” aspects of the division, which includes sales. Yet currency sales were low for H1. RNSs tend to be written carefully. Getting back to the FY revenue of 2 years ago might be achievable for a 30-year currency veteran. If accomplished that would be a boost to the share price as it indicates the return of significant top line growth.
Last RNS also disclosed the repayment of furlough money (just £0.4m) to the UK government. Could that be the preparation for reinstatement of the dividend?
Total short interest has now risen to 2,25%, making it the 24th most shorted UK stock. Saba raised their short to 1.48% last month.
Stay clam and buy the dip this only gonna go one way from here if you read the RNS it’s positive from the company
Agree with previous post about a possible dividend that might well be announced 26th May. Here's why !
As a result of continued positive trading, the Board expects Adjusted Operating Profit for the financial year 2020/21 to be around the top end of the £36 million to £37 million range previously indicated in the Company's trading update of 28 January 2021.
End of year Net Debt was approximately £53 million, which is lower than market expectations(1) by approximately £21 million. This is mainly due to lower capital expenditure during the year, consistent with adjustments made to the timing of capital spend as the Turnaround Plan has evolved. Total aggregate 3-year cash investment for the Turnaround Plan remains unchanged.
Due to the positive outcome of the financial year, the Company has repaid all the money received from HM Government's Coronavirus Job Retention Scheme. Furlough payments received under this scheme totalled approximately £0.4m.