Rolling coverage of the latest economic and financial news, as De La Rue warns of ‘material uncertainty’ about whether it can continue as a going concern
- De La Rue hits City with another warning
- Loss of Brexit passport lingers
- ‘Material uncertainty’ over its future as dividend scrapped
- Introduction: Alibaba floated in Hong Kong today
- Shares leap 6.5% in vote of confidence
Sterling continues to be knocked around by the latest political developments, as the general election race heats up.
The pound has shed half a cent this morning, to $1.285, after an opinion poll showed Boris Johnson’s lead over Jeremy Corbyn has narrowed.
New Kantar election poll:
Conservatives: 43% (-2)
Labour 32% (+5)
Liberal Democrats 14% (-2)
SNP 4% (nc)
Green 4% (+1)
Brexit Party 3% (+1)
Other <0.5% (-2)
(21 – 25 November 2019):
De La Rue’s management team have a fight on their hands, warns David Madden of CMC Markets.
Here’s his take on today’s weak financial results from the banknote printer:
De La Rue shares have plunged after the group swung to a first-half loss, plus, it scrapped its dividend.
The company registered a loss of £9.2 million, which compared with a profit of over £10 million in the same period last year. Management will be conducting a review of the entire business, and in light of the fact the dividend was shelved, it suggests the group is facing serious problems. To make matters worse, net debt jumped by 58% to £170.7 million. The financial health of the group is poor, so Clive Vacher, the turnaround specialist who was drafted in last month as CEO has a tough task ahead of him.