De La Rue suspends bank note printing
BANK NOTE printer De La Rue’s shares plunged to an 18-month low yesterday after it warned sales would be materially below earlier expectations, and that some paper production had failed to meet quality specifications.
De La Rue, the FTSE 250 company, said that sales and production levels would be “materially” lower than previously expected. Analysts had forecast group revenues of just under £600m for the year ending March 2011.
De La Rue said production at its main plant in Hampshire had failed to meet “certain quality specifications” causing it to suspend production and shipment while it conducted an investigation into the circumstances surrounding the faults. The group said that it was still assessing what the impact would be on the current financial results. “The full impact on the current year financial results and on the group’s prospects has yet to be determined,” said De La Rue in a statement, which added that the company would make a further announcement as soon as an assessment had been made.
The group has already suffered financially over the past year and was forced to undergo a restructuring in June 2009. De La Rue’s shares plunged 16 per cent yesterday, closing at 776.50p.