An apt title after today’s results to the period 28 March 2015 from De La Rue (LSE: DLAR) the world’s largest commercial banknote printer and passport manufacturer.
After blaming the ‘challenging market conditions’ for it’s operating loss, reduced dividend, revenue and earnings the market was treated to an increased pension deficit from £168 million to £236.7 million as a result of a decrease in the discount rate used to project the value of the scheme liabilities.
The target is to clear the pension deficit by 2022 which De La Rue say they will meet.
In the period De La Rue conducted a strategic review of it’s businesses and assessed the outlook for the next five years. The results will lead to ‘modernisation, cost reduction and accessing flexible capacity in low growth markets’ and investing in higher growth markets.
The fact remains that De La Rue is still in negative equity as it has been for years: total assets are £461.4 million and total liabilities are £608.3 million.
In fact negative equity increased by over 100% from the same period last year.
This one’s not pretty. At all.