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De La Rue PLC (DLAR)

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Breelander
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De La Rue PLC (DLAR)

#267276

Postby Breelander » November 26th, 2019, 11:13 am

Share price down some 20% on the 2019/20 half year results.

Business update

· A period of significant management change and instability.
· Reorganisation into two divisions - Authentication and Currency - launched on 4 November 2019.
· On track and aiming to accelerate the three-year £20m cost reduction programme.
· Sale of International Identity Solutions business for £42m completed on 14 October 2019.
· The first state printworks customer for our security thread Ignite™ shipping in calendar 2020.

Dividend

· The Board has decided to suspend future dividend payments in order to manage net debt levels as one of the measures undertaken to respond to the identified material uncertainty (see Director's report for further details).
https://www.investegate.co.uk/de-la-rue ... 00106098U/

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Re: De La Rue PLC (DLAR)

#267475

Postby Bouleversee » November 26th, 2019, 7:21 pm

Great. Another big (79% loss), fortunately not a huge sum invested. Why on earth didn't I dump them ages ago? What to do now? Is it worth hanging on for recovery, bearing in mind we rarely handle notes these days? My gut feeling is that they have had it. I really must start setting stop losses.

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Re: De La Rue PLC (DLAR)

#270454

Postby Breelander » December 10th, 2019, 4:39 pm

Bouleversee wrote:...What to do now? ... My gut feeling is that they have had it...


Not all think that, apparently. On 29th November Crystal Amber Fund Limited doubled their holding from 7.12% to 14.33%

https://www.investegate.co.uk/de-la-rue ... 36575494V/


FWIW, I feel that the price has more upside in it than downside at present (at least, until the full year results in May 2020 give a clearer picture). So yesterday I bought some at 127p for my Value Trading portfolio with the intention of selling in the next 6 months if/when the price picks up, but definitely before the FY results.

This is not a recommendation, it's a gamble - and definitely not a HYP recommendation!

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Re: De La Rue PLC (DLAR)

#279634

Postby Breelander » January 24th, 2020, 11:00 am

Share price had been recovering somewhat in recent days, but dropped back nearly 2% on release of this RNS...

De La Rue plc ("De La Rue" or the "Company") and Helen Willis have agreed that she will step down from her role as Chief Financial Officer and will cease to be a Director of the Company, in each case with immediate effect.
https://www.investegate.co.uk/de-la-rue ... 044138733A

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Re: De La Rue PLC (DLAR)

#286634

Postby Breelander » February 25th, 2020, 3:07 pm

De La Rue PLC
TURNAROUND AND TRADING UPDATE
https://www.investegate.co.uk/de-la-rue ... 00059695D/

Seems to have been well received. Share price up some 20% today, currently 148.6p, still well down on a year ago though.

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Re: De La Rue PLC (DLAR)

#314353

Postby Breelander » June 1st, 2020, 5:53 pm

Bouleversee wrote:Why on earth didn't I dump them ages ago? What to do now? Is it worth hanging on for recovery....?


You may be pleased to see their RNS today:

TRADING AND COVID-19 UPDATE
https://www.investegate.co.uk/de-la-rue ... 00064390O/

...the market certainly was.

Alliance News | 1 June, 2020 | 10:32AM
De La Rue PLC said Monday it has made a strong start to its year ending March 31, 2021, as the Covid-19 outbreak has had a limited impact on operations.
Shares in De La Rue were 61% higher at 65.60 pence on Monday in London...
https://www.morningstar.co.uk/uk/news/A ... -wins.aspx

...and closed 194% up at 120p.

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Re: De La Rue PLC (DLAR)

#314355

Postby Bouleversee » June 1st, 2020, 6:05 pm

Thanks, Bree. I was going to say you'd made my day till I looked at the s.p. graph and saw it didn't add much to the value of my holding. Still, better than going further in the other direction.

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Re: De La Rue PLC (DLAR)

#318853

Postby Breelander » June 16th, 2020, 3:20 pm

SFO INVESTIGATION CLOSURE
De La Rue is pleased that the SFO has closed its investigation and that the SFO is taking no further action in respect of this matter.

https://www.investegate.co.uk/de-la-rue ... 00030320Q/


Share price up on the announcement, but then so is the market in general. DLAR up about 6%, market up about 4%.

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Re: De La Rue PLC (DLAR)

#319123

Postby Breelander » June 17th, 2020, 3:31 pm

De La Rue have proposed a Capital Raising as part of their Turnaround Plan.

De La Rue plc wrote: £ 100 million underwritten Capital Raising by way of Firm Placing and Placing and Open Offer of 90,909,091 New Ordinary Shares at 110 pence per share

De La Rue plc ("De La Rue" or the "Company") is pleased to announce that it proposes to raise gross proceeds of approximately £100 million by way of a Firm Placing and Placing and Open Offer of, in aggregate, 90,909,091 New Ordinary Shares at an issue price of 110 pence per New Ordinary Share (the "Capital Raising").
https://www.investegate.co.uk/de-la-rue ... 01052107Q/

The news was well received by the market, DLAR currently up about 6%.

Documents including the Prospectus available here:
https://www.delarue.com/investors/capitalraising

From the Prospectus:

De La Rue plc wrote: Qualifying Shareholders are being given the opportunity to subscribe for New Ordinary Shares pro rata to their existing shareholdings on the basis of 7 New Ordinary Shares at 110p each for every 16 Existing Ordinary Shares held by them and registered in their names at the Record Time...

...Shareholders should be aware that the Open Offer is not a rights issue. As such ... Qualifying Shareholders who do not apply to take up their entitlements will have no rights, and will not receive any benefit, under the Open Offer.


An Open Offer differs from a Rights Issue in that there are no 'lapsed rights' to be paid to shareholders who do not take up their entitlement.

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Re: De La Rue PLC (DLAR)

#319127

Postby kempiejon » June 17th, 2020, 3:47 pm

Well it really is all coming up roses for DLAR now, remember when they shrugged off a take over from over the channel too? Didn't they lose out on the printing of the proper passports when they were re-instated and they added animal fat to bank notes upsetting the vegans and their chums?
Still up to nearly the 2000 price.

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Re: De La Rue PLC (DLAR)

#319159

Postby Bouleversee » June 17th, 2020, 5:44 pm

I know you are a clever chap, Bree, and I am suffering from severe brain fog so could you please tell me how many additional shares on top of my entitlement (which is presumably 144 shares) I would have to apply for and get via the Open Offer in order to avoid dilution of my existing holding of 330 shares. It's a bit like those brain teasers one gets on the Today programme every day now which I can never do.

Secondly, are you going to participate in the offer and to what extent? I don't understand the difference between a Firm Placing and a Placing, do you? You have done quite well with your purchase in February but how much confidence do you have in the company's being profitable after spending all this money? People are going to be even less willing to handle money of any kind (apart from copper, perhaps) after Covid. Why are they more likely to do well in the future than in the past?

I shall have to try to get to bed earlier and read that very lengthy document when I am less tired. I didn't notice anything about scaling back excess applications when I whizzed through it this afternoon. Do you know whether that will apply in this case? Accesso Technology have just had an Open Offer, after a placing, where the additional applications were scaled back quite a lot and I ended up with relatively few additional shares but had to pay for the all the ones I applied for in advance and have only just had the difference refunded to my account. The current selling price (280p) is less than the offer price (290p) whereas it was 395p mid-price on May 27 so my guess is that those who were able to buy in the placing cleaned up before small investors on platforms even got their shares credited and knew how many they had been allotted. Is the same thing likely to happen in this case? Why would the price drop so much when the open offer was oversubscribed and scaled back? Is the answer that those who could buy in the placing made a fast buck selling while private investors were still waiting to know their allocation and have only succeeded in increasing their losses?

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Re: De La Rue PLC (DLAR)

#319178

Postby Breelander » June 17th, 2020, 6:34 pm

Bouleversee wrote:I know you are a clever chap, Bree, and I am suffering from severe brain fog so could you please tell me how many additional shares on top of my entitlement (which is presumably 144 shares) I would have to apply for and get via the Open Offer in order to avoid dilution of my existing holding of 330 shares. It's a bit like those brain teasers one gets on the Today programme every day now which I can never do....


Well, technically dilution is of no consequence until they actually start paying a dividend again (if ever).

There are currently 104 million DLAR shares in issue according to Investegate. A total of 90.9 million new share are to be created for this placing/offer. So to avoid dilution you would need 90.9M/104M or another 0.874 shares for each share you hold. That's another 288 to go with your existing 330. Half of that you are eligible for in the Open Offer but the rest you would have to get via the placing, which may be scaled back if over-subscribed.


Secondly, are you going to participate in the offer and to what extent? I don't understand the difference between a Firm Placing and a Placing, do you? You have done quite well with your purchase in February but how much confidence do you have in the company's being profitable after spending all this money? People are going to be even less willing to handle money of any kind (apart from copper, perhaps) after Covid. Why are they more likely to do well in the future than in the past?


No, I do not intend to participate. The Turnaround Plan seems to have met with the market's approval, and this placing will give DLAR the capital to put it in place. But I don't see the turnaround restoring dividends any time soon, or at previous levels if/when they do. For my HYP it's just a matter of when I'll sell, not if.

As far as I can make out a Firm Placing means they have already lined up some specific investors who have agreed to take up the offered new shares, and that accounts for half of the new shares. A Placing on the other hand means the underwriters will look for investors after the Placing starts, the other half of new shares are for the 'Placing and Open Offer'.

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Re: De La Rue PLC (DLAR)

#319185

Postby Bouleversee » June 17th, 2020, 6:54 pm

Many thanks, Bree. Will think about it but will probably just cut my losses or stick with the present holding as I don't have a good feeling about this company.

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Re: De La Rue PLC (DLAR)

#319324

Postby dealtn » June 18th, 2020, 10:46 am

Breelander wrote:Well, technically dilution is of no consequence until they actually start paying a dividend again (if ever).



Well I guess "technically" it depends on your definition of "consequence", but you are diluted at the point of the Capital re-organisation regardless of whether they ever pay any future dividend. Your percentage ownership of the company, and its earnings alters at that time, and isn't dependent on any future dividend stream.

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Re: De La Rue PLC (DLAR)

#320493

Postby zharrt » June 22nd, 2020, 5:50 pm

Breelander wrote:
Bouleversee wrote:I

Secondly, are you going to participate in the offer and to what extent? I don't understand the difference between a Firm Placing and a Placing, do you? You have done quite well with your purchase in February but how much confidence do you have in the company's being profitable after spending all this money? People are going to be even less willing to handle money of any kind (apart from copper, perhaps) after Covid. Why are they more likely to do well in the future than in the past?


No, I do not intend to participate. The Turnaround Plan seems to have met with the market's approval, and this placing will give DLAR the capital to put it in place. But I don't see the turnaround restoring dividends any time soon, or at previous levels if/when they do. For my HYP it's just a matter of when I'll sell, not if.

As far as I can make out a Firm Placing means they have already lined up some specific investors who have agreed to take up the offered new shares, and that accounts for half of the new shares. A Placing on the other hand means the underwriters will look for investors after the Placing starts, the other half of new shares are for the 'Placing and Open Offer'.


I am a firm believer of not capitalising a loss by selling shares, my average purchase price is 626p

I have the benefit of time on my hands, the value of the holding is too small (now) to really be of any benefit if it was reinvested so will look to buy as many shares as possible to try and claw back that average price to something which I might see once again.

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Re: De La Rue PLC (DLAR)

#320495

Postby Bouleversee » June 22nd, 2020, 5:56 pm

I did that with Carillion and Interserve, compounding my loss.

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Re: De La Rue PLC (DLAR)

#320496

Postby zharrt » June 22nd, 2020, 6:07 pm

Bouleversee wrote:I did that with Carillion and Interserve, compounding my loss.


Always a risk, but if we wanted to play it safe we'd buy premium bonds

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Re: De La Rue PLC (DLAR)

#320498

Postby Bouleversee » June 22nd, 2020, 6:10 pm

I do; I have the max. holding but that still leaves a fair bit to risk. LOL.

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Re: De La Rue PLC (DLAR)

#322909

Postby Fluke » July 1st, 2020, 9:42 am

I've been putting off deciding until today, I have an entitlement of 295 of the new shares which at 110p would cost 324.50. The share price this morning is about 130p so the discount has narrowed since the day of the announcement to about 15%. Anyone know why the price has dropped back?

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Re: De La Rue PLC (DLAR)

#324298

Postby EthicsGradient » July 7th, 2020, 12:24 pm

https://www.ii.co.uk/news/de-la-rue-rai ... 7631882000

For the open offer, 35.6 million shares of the 45.5 million 'proportional' shares were taken up, and for the 9.9 million remaining, there were applications for 14.3 million under the 'excess' open offer. I applied for some, and it appears from my platform that I got all I applied for, though that might just be the way they're showing it before trading in them can start (that was around 10:30 this morning, when they still weren't tradeable on AJ Bell). I can't see anything announcing how they have allocated the excess shares yet; perhaps they give smaller shareholders all they ask for, and cut back the larger applications.


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