The Investment Column: De La Rue
Wednesday 02 June 1999
However, as the group sets the presses rolling to print the commemorative stamps to mark the wedding of Prince Edward and Sophie Rhys-Jones, the City is looking more positively at the group. At their 1995 peak the shares stood at pounds 10.50 before plummeting to 133p last year. Yesterday they jumped 5 per cent to 319p after posting annual results down on last year - losses were pounds 7.4m - but giving a positive update on the group's restructuring.
The continuing reorganisation follows chief executive Ian Much's appointment in September. In March, Mr Much announced a shake-up costing pounds 40m and the loss of 500 jobs.
His latest strategy is to set up a new support services division to run alongside the existing card systems, cash systems and printing divisions. The aim is largely to answer criticisms that the smartcard business was the only growth area in the company.
Meanwhile, Mr Much says emerging markets are likely to provide more opportunities - De La Rue prints money in 120 of the world's smaller countries and provides Brazil's entire cash handling services - while in Europe and the US he is looking for acquisitions. Analysts agree both with Mr Much's frank assessment of De La Rue's past failings - "horrible" - and his optimism.
Carl Green, support services analyst at Charterhouse Securities, says: "As soon as the evidence comes through six months down the line it could get even more positive." Despite their recent rally, the
shares are looking good value.
- 1 The political parties aren't all the same – which means 2015 will be a 'big-choice' election
- 2 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
New York police shooting: thousands turn out for the funeral of Rafael Ramos
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...