Tue. Sep 29th, 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:

9.57am GMT

Food producer Compass has also alarmed the City this morning, sending its shares down 5% to the bottom of the FTSE 100.

Compass warned that business and consumer confidence in Europe had deteriorated, hurting its profit margins and sales growth.

“Consumer confidence (in Europe) continues to decline and a number of key clients, notably in manufacturing, automotive and financial services, have reduced their headcount in recent months.

9.40am GMT

Losing that Brexit passport contract in 2018 was the biggest blow to De La Rue’s future, says Neil Wilson of Markets.com.

There has been trouble in Venezuela and the SFO investigation remains ongoing – but by far the biggest blow and the source of the company’s collapse in market capitalization was losing the contract to make UK passports.

I don’t buy the argument that printing banknotes in a cashless world makes them structurally irrelevant – cash in circulation is growing all the time. The need for more secure notes that De La Rue makes is becoming more important, not less. Bad management and decisions seems to be the main reason for the malaise.

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 futureEarlier:Introduction: Alibaba floated in Hong Kong todayShares leap 6.5% in vote of confidence 9.57am GMTFood producer Compass has also alarmed the City this morning, sending its shares down 5% to the bottom of the FTSE 100.Compass warned that business and consumer confidence in Europe had deteriorated, hurting its profit margins and sales growth.“Consumer confidence (in Europe) continues to decline and a number of key clients, notably in manufacturing, automotive and financial services, have reduced their headcount in recent months. 9.40am GMTLosing that Brexit passport contract in 2018 was the biggest blow to De La Rue’s future, says Neil Wilson of Markets.com.There has been trouble in Venezuela and the SFO investigation remains ongoing – but by far the biggest blow and the source of the company’s collapse in market capitalization was losing the contract to make UK passports. I don’t buy the argument that printing banknotes in a cashless world makes them structurally irrelevant – cash in circulation is growing all the time. The need for more secure notes that De La Rue makes is becoming more important, not less. Bad management and decisions seems to be the main reason for the malaise. Continue reading…