De La Rue warns of profits blow

The world's largest banknote printer De La Rue has warned that paper production errors discovered at one of its facilities, which involved some of its employees falsifying documents, would cost it at least £35 million in lost profits for the half year.

The group revealed that investigations launched into a recent production crisis at its UK factory in Overton, Hampshire, found some employees had "deliberately falsified" paper specification test certificates for some banknote customers.

De La Rue's findings have been passed on to the Serious Fraud Office, it said, adding that disciplinary action will be taken against those involved.

It has appointed a new managing director for its currency division.

The group, which prints notes for the Bank of England and 150 other countries, saw a drop in its sales volumes following the production problem.

De La Rue, which had to temporarily stop production at the Overton factory after its chief executive James Hussey resigned over the issue, said that neither the physical security nor the security features incorporated in the paper were compromised for any customer.

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