Join our community of smart investors

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.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in