Paper poses problems at De La Rue

British banknote printer De La Rue reported a 68 per cent drop in full-year profit due to paper production problems.
By The Newsroom
Published 25th May 2011, 07:00 BST

De La Rue said production of banknote paper for one of its top customers was still suspended after faults were found with it in July last year, at a cost of £35m.

“Discussions remain ongoing with the principal customer concerned and the authorities, and therefore there remains uncertainty as to the ultimate outcome of these issues, including their financial impact,” the company said.

Hide Ad
Hide Ad

De La Rue produces more than 150 national currencies and security documents including passports.

It said pre-tax profit before exceptional items for the year to March 26 fell to £33.3m ($53.7 m) from £104.1m in the previous financial year.

“The financial year has undoubtedly been a difficult one for De La Rue,” chairman Nicholas Brookes said in a statement.

“We have dealt with a number of challenges including paper production issues, lower-than-expected banknote print volumes, changes in senior management and a takeover approach.”