Market's view on De La Rue
Published on April 2024
- De La Rue plc provided a pre-close trading update for FY24, projecting adjusted operating profit in the low £20m range and net debt roughly £90m, slightly better than previously forecasted. The Authentication division is expected to achieve revenues exceeding £100m. Full results will be announced on 18 June 2024, with a strategic update promised by 31 May 2024.
- Discussions include speculations about potential company restructuring or sale, especially concerning the Authentication division, which might be considered the company’s best chance for future revenue.
- Concerns were raised about the lack of urgency from significant shareholders to sell their stakes, possibly due to awaiting better company performance through new contracts.
- The silence from the company and its major shareholders about operational updates has been noted, alongside a significant lack of news flow and trading volumes.
- Positive financial improvements are anticipated due to favorable market conditions, particularly in bank note demand.
- There is a consistent belief among stock watchers that a takeover or merger is imminent, with potential interest from US companies.
- Trading updates and financial forecasts from related companies like Crane NXT have been discussed, highlighting strong operational performance and strategic plans for mergers and acquisitions.