|Bid||172.60 x 0|
|Ask||174.40 x 0|
|Day's range||160.93 - 175.00|
|52-week range||131.60 - 492.50|
|Beta (3Y monthly)||0.80|
|PE ratio (TTM)||10.59|
|Earnings date||26 Nov 2019|
|Forward dividend & yield||0.25 (14.97%)|
|1y target est||577.50|
Royston Wild suggests that Stocks and Shares ISA investors should ignore this big-yielding dividend stock: it could end up costing them a fortune.
(Bloomberg) -- The world’s biggest printer of banknotes just can’t stop losing money for its shareholders.De La Rue Plc shares plummeted again on Wednesday after the more than 200-year-old British company issued its second profit warning of the year. The stock has now lost about 80% of its market value in two years after the loss of a major contract and a U.K. Serious Fraud Office investigation into suspected corruption in South Sudan.In a statement, De La Rue forecast full-year adjusted operating profit “significantly lower than market expectations.” It didn’t provide a reason and a spokesman declined to comment further when contacted by Bloomberg.The company has been hit in recent years by heightened competition in money printing, and by the controversial loss of a contract to print British passports after Brexit to a Franco-Dutch rival. Clive Vacher, the former chief executive officer of Dynex Power Inc., was appointed CEO earlier this month and is leading a review. He’ll provide an update alongside first-half results on Nov. 26, De La Rue said.The shares fell as much as 30% to a record low, extending their year-to-date drop to 69% and cutting the company’s market value to 137 million pounds ($177 million).\--With assistance from Ivan Edwards.To contact the reporter on this story: Joe Easton in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A rally in pharmaceutical stocks led by industry giants GlaxoSmithKline and AstraZeneca helped the FTSE 100 outshine most global peers on Wednesday while investors waited for the outcome of the U.S. Federal Reserve's policy meeting. The FTSE 100 reversed early losses to close up 0.3%, with the pharma sub-index scaling an all-time high, up 2.5% after GSK again upgraded its 2019 targets. Moves on both indexes were however subdued with investors waiting for the Fed to announce its policy decision.
De La Rue, which is under investigation for suspected corruption, said full-year profits would come in 'significantly lower' than expectations.
The company did not specify the reason for its lowered expectations, but a previous warning was triggered by a margin squeeze from competitive pressures in banknote printing. The company had said in May that operating profit for the current year would be "somewhat lower" than the previous year. Earlier this month, it named Clive Vacher as chief executive officer.
De La Rue shares plunged to their lowest in more than two decades on Wednesday after the British passport and banknotes printer cut its profit forecast for the second time in five months. Analysts said the move by new chief executive Clive Vacher was aimed at resetting expectations as he sets out on reviving a business hit by weak profit margins and a fraud probe. De La Rue, which prints around seven billion banknotes and 15 million passports a year, said it expected annual profit to be significantly lower than market expectations, with the first-half result likely to be in the low-to-mid single digit millions compared with 17 million pounds ($22 million) a year earlier.
HID Global®, a worldwide leader in trusted identity solutions, today announced that it has completed the acquisition of the international identity solutions business of De La Rue (DLAR.L), the world’s largest commercial issuer of banknotes and passports. The De La Rue business will be merged with HID’s citizen identity solutions portfolio, broadening HID Global’s leadership position, extending its capabilities to scale and assemble government-issued citizen IDs, and expanding the value delivered to customers. “HID Global and the De La Rue international identity solutions business share the common goal of helping governments fulfill their e-government initiatives today and in the future by converging physical and digital identities to increase efficiency, security and flexibility,” said Stefan Widing, President and CEO, HID Global.
De La Rue has appointed turnaround specialist Clive Vacher as chief executive as the banknote and passport maker contends with a series of setbacks. Vacher takes over immediately from Martin Sutherland, whose departure was announced after a May profit warning, but faces significant challenges alongside new chairman Kevin Loosemore. De La Rue's share price has more than halved since the profit warning, with the company also taking a one-off hit for non-payment from Venezuela and an investigation led by Britain's Serious Fraud Office (SFO).
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Rogerson's retirement follows the departure of De La Rue's chief executive officer, who agreed to step down in May after the company warned of a profit downturn this year. Loosemore's appointment comes as De La Rue faces disruptions after Britain's Serious Fraud Office opened a criminal investigation in July over "suspected corruption" in its business in South Sudan.
The latest earnings release De La Rue plc's (LON:DLAR) announced in June 2019 suggested that the company faced a major...
De La Rue said that an investigation had been opened into “suspected corruption” relating to its business in South Sudan.
London-listed De La Rue, which has designed about a third of the world's banknotes in circulation and is the world's largest commercial printer of passports, said it was cooperating with the SFO and would provide a further update when appropriate. "Given the early stage of these matters, it is not possible to predict reliably what effect their outcome may have on De La Rue," the company said in a statement on Tuesday. De La Rue, which secured the contract to design and print the new currency of South Sudan after the country seceded from the north in 2011 following decades of civil war, holds its annual shareholder meeting on July 25.
The UK Serious Fraud Office (SFO) has opened a criminal investigation into passport and banknote printer De La Rue over "suspected corruption" in its business in South Sudan, sending its shares plunging to 16-year lows. London-listed De La Rue, which has designed about a third of the world's banknotes in circulation and is the world's largest commercial printer of passports, said it was cooperating with the SFO and would provide a further update when appropriate. "Given the early stage of these matters, it is not possible to predict reliably what effect their outcome may have on De La Rue," the company said in a statement on Tuesday.
Britain's FTSE 100 hit its highest level in more than two weeks on Tuesday, helped by broad gains on a combination of generally positive corporate results from Wall Street and Europe and bets that major central banks would cut interest rates soon. The main index jumped 0.6% as its internationally-exposed stocks gained on a weak sterling after eurosceptic Boris Johnson won the Conservative Party leadership, clearing the way for him to become prime minister. The domestically-focussed FTSE 250, which has broken ranks with the local currency in recent months, defied the drop in the pound and rose 0.5%.
As De La Rue plc (LON:DLAR) released its earnings announcement on 30 March 2019, analysts seem cautiously optimistic...
Banknote maker De La Rue has announced plans to shut a print line at its Gateshead works, placing up to 171 jobs at risk of redundancy. The company made the decision just over a year after it hit harder times when it failed to win a £450m government contract to produce blue post-Brexit passports - ironically awarded to a French-Dutch conglomerate. De La Rue has issued a number of profit warnings since and seen its chief executive quit as it scrambles to fill the void.
British union Unite attributed the job cuts to the lost contract, adding the losses were for skilled printing jobs working on the foreign currency contracts, with 100 passport printing jobs due to go in the autumn. De La Rue lost the post-Brexit UK passport contract last year to Franco-Dutch group Gemalto, in a move that the government said was an expression of British independence and sovereignty after the vote to leave the European Union. A spokeswoman for De La Rue said the company was in the final stages of a footprint restructuring programme that was announced in 2015.