De La Rue dips after trading update

Shares in De La Rue have dropped 2% following its announcement that banknote paper supplies to a principal customer, understood to be The Reserve Bank of India, remain suspended as discussions with the client over production issues have not yet concluded.

The banknote printer said it has not yet seen evidence of an adverse impact of the recent paper production issues on the rest of the business.

In its interim management statement, De La Rue - which prints notes for the Bank of England and 150 other nations - said that trading for the period since September 25 had been in line with the company's expectations.

Last July, the printer suspended production at a plant in Overton, Hampshire and launched an investigation into quality issues, which found that some employees had deliberately falsified paper specification test certificates for some customers.

The production woes caused its chief executive James Hussey to resign and cost the company £35 million in its half-year results.

Copyright © Press Association 2011