De La Rue shares tank!

Thursday, 30th May 2019 07:57 - by Rajan Dhall

Shares in printing firm De La Rue fell as much as 23% in early trade as Co. announce an exceptional charge of GBP 18.1m due to issues with client payment Venezuela. Recent US sanctions have prohibited money flow from the Maduro regime but details at this point are sketchy at best.  

Elsewhere, revenue increased 12% to GBP 516.6m and adjusted operating profit increased 6% to GBP 60.1m. The main forward guidance from the group warned that FY 2020 profits are expected to be "somewhat lower". 

CEO Marin Sutherland has also announced his departure from the company but will remain at the group until his successor is appointed. The Co. has also put forward its cost reduction programme following the loss of business from the UK Government who will no longer be printing passports with the firm, in which they expect to save GBP 20m by 2020.

Looking at the chart now, other significant lows were noted in 2003 (277.5p) and the all-time low of 204.5p in Sept'98. Today price is hovering around 340p with no real levels of support in close proximity of price.