Forget crypto-currencies, printing money continues to be a profitable business. Banknote printing and identification specialist De La Rue (DLAR) revealed another busy period at its currency division, with increased banknote volumes underpinning a 36 per cent increase in revenue to £185m. The group printed 3.5bn new notes in the six months to September, including the natty new £10 note, which it also designed. However, an increase in the price of cotton and other raw materials shaved 150 basis points off the adjusted operation margin, although this is expected to retrace in the second half.
Net debt increased by 14 per cent due to higher working capital, but at least the group's pension scheme liabilities are set to fall by around £70m in the FY2018 accounts following an agreement with the trustee over a change in indexation treatment.
| DE LA RUE (DLAR) | ||||
| ORD PRICE: | 641p | MARKET VALUE: | £653m | |
| TOUCH: | 641-644p | 12-MONTH HIGH: | 712p | LOW: 547p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 12 | |
| NET ASSET VALUE: | * | NET DEBT: | £137m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016** | 190 | 17.2 | 13.2 | 8.3 |
| 2017 | 245 | 18.9 | 14.8 | 8.3 |
| % change | +29 | +10 | +103 | |
| Ex-div: | 07 Dec | |||
| Payment: | 03 Jan | |||
| *Negative shareholder funds **26-week period ended 24 Sep 2016 | ||||
