De La Rue share price dives amid disappointing results
De La Rue Plc (LON:DLAR) today reported preliminary figures for the financial year ended March 28, plunging its shares deep in the red as revenue, profit and dividend were all significantly lower from last year.
De La Rue’s share price had slid 8.96 percent to 503.88p as of 09:58 BST today. The stock is down 16 percent from its mid-April peak and is more than 37 percent lower on an annual basis.
De La Rue said it had faced challenging market conditions but had delivered results in line with expectations.
The Basingstoke-based printer reported revenue of £472.1 million, down eight percent on an annual basis, while underlying operating profit had declined 22 percent to £69.5 million. Final dividend, subject to approval by shareholders, was proposed at 16.7p per share, down from 28.2p last year.
The company noted that it was “mindful of the importance of dividends to shareholders” and said it will look to maintain dividend levels for the current year.
“These results are in line with our revised expectations and include the benefit of further operational efficiencies. However, these have been outweighed by the impact of the challenging market conditions on revenue and operating profit across the Group,” newly appointed chief executive Martin Sutherland commented. “I have completed a review of the business and formulated a clear Strategic Plan to deliver growth and improved profitability in the long term through a greater focus on customers, innovation and delivery.”
Sutherland, delivering his first results at De La Rue, was appointed to the helm of the printer in October, following the company’s latest profit warning which sent its shares plunging 30 percent, its biggest single-day fall in a decade.
The company said that findings from its recent review pointed to the conclusion that “the current integrated portfolio is beneficial and should be maintained”. De La Rue added, however, that different approaches would be employed, which would see the company ‘Optimise and Flex’ its exposure to low-growth markets while building on other, more promising positions.
As of 11:03 BST, Wednesday, 27 May, De La Rue plc share price is 504.00p.