It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

De La Rue sees FY operating profit at top end of guidance

Tue 13 April 2021 10:03 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Banknote printer De La Rue said on Tuesday that full-year adjusted operating profit is set to be at the top end of its guidance following "continued positive trading", and that it has repaid all the money it received from the government's furlough scheme.

In an update for the year ending 27 March 2021, the company said it now expects adjusted operating profit to be around the top end of the £36m to £37m range it gave in January.

It also said it has repaid in full the money received from the government's Coronavirus Job Retention Scheme. Furlough payments received under this scheme totalled around £400,000.

End of year net debt came in at around £53m, which is approximately £21m lower than market expectations. The company attributed this mainly to lower capital expenditure during the year, consistent with adjustments made to the timing of capital spend as the Turnaround Plan has evolved.

Broker Numis said the new operating profit guidance suggests an outperformance of around 2% versus its £36.3m forecast.

"Overall, we view this as a reassuring update, and continue to view the shares as attractively valued on circa 12x FY22E price-to-earnings and circa 10x FY22E EV/EBITA."

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.

    More company news from ShareCast