De La Rue


Market Cap£271m

Last Close -138.8

De La Rue is a world leader in anti-counterfeiting and security for currency and brand protection. The company operates across 140 countries and is the number one commercial designer and producer of banknotes and security features.

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Investment summary

Before the emergence of COVID-19, the latest trading update from management maintained FY20 guidance for adjusted operating profit at £20–25m, and that it should trade within the net debt/EBITDA ratio covenant of <3.0x. It has also announced details of a three-year turnaround plan following completion of the business review. It includes an additional £15m of cost savings on top of the £20m already committed to complete by August 2020. The new management team believes that with two strong divisions it can reset, rebase and rebuild the investment case.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 461.4 78.4 47.5 38.2 3.6 1.5
2019A 516.6 79.5 54.1 42.9 3.2 N/A
2020E 420.3 43.2 15.4 11.2 12.4 N/A
2021E 369.6 54.1 24.2 18.1 7.7 7.8
Industry outlook

Demand for cash remains strong with the volume of notes in circulation growing by around 3–4% globally and exceeding GDP growth rates in most geographic regions. With the rise in demand comes the increasing threat from counterfeiting and fraud, which drives the need for enhanced security features. These also have applications across the commercial product authentication and revenue protection markets.

Last updated on 04/11/2020
Content on De La Rue
De La Rue – Securing the future
Industrials | research Update | 6 December 2019
De La Rue – Challenges continue
Industrials | research Flash note | 30 October 2019
De La Rue – Withdrawal from subscale activity
Industrials | research Update | 14 June 2019
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Share price graph
Balance sheet
Forecast net debt (£m) 126.2
Forecast gearing ratio (%) 956
Price performance
Actual (1.6) 0.9 (6.9)
Relative* (0.2) 3.8 15.1
52-week high/low 169.0p/37.3p
*% relative to local index
Key management
Kevin Loosemore Chairman
Helen Willis CFO
Clive Vacher Chief Executive Officer & Executive Director
Paul Sharma Head of investor relations