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 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Ebola virus: UK health officials issue warning to doctors as experts admit the outbreak 'is not under control'
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...