De La Rue


£175.5m market cap

168.8p 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 security features.

Investment summary

The company issued a trading update on 30 October 2019 indicating a weaker than anticipated H120 with adjusted operating profit down to low- to mid-single digits from £17m in H119. We have placed our forecasts under review awaiting H120 results on 26 November when the new CEO, Clive Vacher, should provide more detail and initial thoughts on the business review that is underway. He is likely to seek to reset the strategy although he may require some time to fully formulate his proposals. The challenges in Currency remain, and the loss of the UK passport contract and sale of International ID also reduce earnings capacity.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 461.4 78.4 47.5 38.2 4.4 1.8
2019A 516.6 79.5 54.1 42.9 3.9 N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
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 personal identity, commercial product authentication and revenue protection markets.

Last updated on 14/11/2019
Share price graph
Balance sheet
Forecast net debt (£m) 97.7
Forecast gearing ratio (%) 267
Price performance
Actual (25.3) (24.5) (64.5)
Relative* (26.2) (26.6) (65.9)
52-week high/low 476.0p/149.0p
*% 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