- Shares off summer lows of 30p
- Adjusted operating profit of £7.9 million
- Full-year outlook left unchanged
Shares in De La Rue (DLAR) fell over 8% in morning trading to 74p despite the banknote and passport printer reporting better-than-anticipated first half results.
The firm reported an adjusted operating profit of £7.9 million ahead of previous guidance of breakeven for the six months ending 30 September 2023.
But the firm’s full year outlook was left unchanged which may have spooked investors hoping for more.
The De La Rue board expects ‘adjusting operating profit of early £20 million range and net debt in the mid £90 million range.’
Russ Mould, AJ Bell investment director said: ‘A warning of ‘a number of significant operational uncertainties’ in its two main divisions was unlikely to go down well given the thing investors hate above all is uncertainty.’
Back in April De La Rue shares crashed after the firm cut its earnings expectations again and lowered its outlook for the coming year.
The firm’s shares have since recovered (from a temporary crash in April) and are off all-time lows of 30p experienced over the summer.
Revival in De La Rue shares could be confirmed next week
BRIGHT SPOTS
De La Rue’s currency order book increased over 100% since September 2023 period end, to £219.8 million ‘with a very high win rate since beginning of full year 2024, in a recovering market’, said the firm.
Clive Whiley, De La Rue chairman, said that progress with adjusted operating profit had been made since he started as chair in May this year with ‘significantly enhanced contract win rates and renewed confidence within the management team.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Steven Frazer) own shares in AJ Bell.
