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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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De La Rue - One warning too many; I am selling

January 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DLAR
  • Price:
  • 74.5p
The shares fell after first half results warned that due to the “unpredictability of the external environment, particularly when it comes to timing of customer orders” De La Rue has cut full year operating profit guidance to £30-33m for FY’23 compared to £36m last year  with end-of-year net debt expectations unchanged in the £88-92m range. In Authentication,  revenue rose  just 2.5% to £45.5m and adjusted profit fell 44% to £4.9m. Management blamed an unfavourable sales mix and supply chain problems, but a new managing director has been brought in to improve the situation.   In Currency, revenue tumbled 12% to £116m and profit declined by 48% to £4.3m, which management blamed on a “subdued market” with customers de-stocking ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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