De La Rue


£243.5m market cap

234.5p 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’s strategy is to transition to a less capital-intensive operation while diversifying the customer base, adding revenue streams, incorporating more embedded technology/IP. However, FY19 results were affected by a credit loss on currency supply to Venezuela. The ending of supply compounds falling revenues and profits from the loss of the UK passport contract. The disposal of International ID simplifies the group. A new CEO is being sought and the financials are not rebased until FY21. The rating remains undemanding but the healthy dividend yield could face reassessment.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 461.4 78.4 47.5 38.2 6.1 2.6
2019A 516.6 79.5 54.1 42.9 5.5 N/A
2020E 493.0 69.8 42.8 32.7 7.2 11.3
2021E 390.7 67.9 41.2 31.9 7.4 5.6
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 markets for ID Solutions and commercial product authentication and revenue protection markets.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) 97.7
Forecast gearing ratio (%) 267
Price performance
Actual (22.1) (46.6) (53.2)
Relative* (23.0) (46.9) (51.9)
52-week high/low 511.0p/231.0p
*% relative to local index
Key management
Philip Rogerson Chairman
Martin Sutherland CEO
Helen Willis CFO