De La Rue


£426.3m market cap

413.5p last close

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

Investment summary

De La Rue is pursuing a strategy to transition to a less capital-intensive operation with a more diverse customer base and revenue streams, incorporating more embedded technology and IP. Underlying progress is apparent although masked by the disposals and the recent loss of the UK passport contract. The strengthening of the balance sheet facilitates M&A to augment what we expect to be a resumption of organic sales growth from FY21. The current rating implies scepticism but this should improve as growth prospects are recognised. The healthy dividend yield provides support for investors.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 461.7 97.3 58.7 47.0 8.8 6.2
2018A 493.9 87.3 53.4 42.9 9.6 4.8
2019E 509.9 85.6 55.5 44.5 9.3 9.2
2020E 506.5 87.4 55.5 44.3 9.3 5.9
Last updated on 20/03/2019
Industry outlook

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

Last updated on 20/03/2019
Share price graph
Price performance
Actual (0.4) 0.4 (20.3)
Relative* (1.3) (7.9) (22.0)
52-week high/low 557.0p/406.5p
*% relative to local index
Key management
Philip Rogerson Chairman
Martin Sutherland CEO
Helen Willis CFO