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De La Rue: strong first year in five-year turnaround plan

Early signs of its tactical overhaul in action lifted sentiment in the banknote printer

Overcapacity in the banknote market and rising usage of online payment systems forced De La Rue (DLAR) to rethink its strategy in May 2015. The first year of the five-year plan to overhaul the business appears to have restored some investor trust.

IC TIP: Hold at 529p

A chunk of good news came one day prior to results day, when De La Rue announced the disposal of its underperforming cash processing solutions (CPS) unit for £3.6m, with a further payment contingent on performance. Factor in CPS's sluggish performance and underlying operating profit crashed a tenth to £62.5m in the year to 26 March - without it a more respectable 2 per cent gain was achieved.

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