Wed. Sep 30th, 2020

UK banknote maker De La Rue fears for its future – business live

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

Earlier:

11.03am GMT

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):

10.47am GMT

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.

Continue reading…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 concernDe La Rue hits City with another warningLoss of Brexit passport lingers‘Material uncertainty’ over its future as dividend scrappedEarlier:Introduction: Alibaba floated in Hong Kong todayShares leap 6.5% in vote of confidence 11.03am GMTSterling 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): 10.47am GMTDe 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. Continue reading…

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