On July 20 the bank note paper production and currency printer company De La Rue revealed that papers had been released from the company with quality and production irregularities. De La Rue makes bank note paper for over 150 countries including the Bank of England. The infraction occurred at the Hampshire factory.
De La Rue recently revealed that the release of the bank note papers is of a “serious nature”. On Thursday, responding to the announcement that the company’s chief executive, James Hussey, would be resigning immediately, De La Rue’s stock lost 10 per cent of its share value. Shares fell 82.5p to 711.5. Hussey had been a De La Rue employee for 27 years.
The company has been adiment that neither the physical security not security features incorporated in the bank note paper have been compromised. The Hampshire factory has suspended production since the quality problem was discovered. De La Rue has warned that sales and paper production will be lower than expected.
Nicholas Brookes, De La Rue’s non-executive chairman, has taken over the executive role for the company. Colin Child, the finance director, is serving as chief operating officer. Both will maintain the leadership roles until a replacement for Hussey is found.
Panmure Gordon, analystfor Paul Jones, said: “Clearly the resignation of chief executive James Hussey suggest the impact of these problems could be significant. While the immediate financial impact may be relatively limited, we remain concerned that the reputational damage may be ongoing both operationally and in stock market terms.”
De La Rue is the world’s largest commercial currency printer and paper maker. They employee 4,000 people in 24 different countries.