De La Rue make a statement on Tuesday that it has now been established that some of the company's employees have deliberately falsified certain paper specification test certificates for a limited number of customers. Banknote paper specifications have a large number of detailed parameters and the investigation has found in certain cases that a small number of them have fallen marginally short of specification. De La Rue said all paper production is now within specification and it is ready to resume supply of fully compliant paper as soon as customers agree.
It gave no indication of how many staff were involved. The investigation into production irregularities at its printing plant in Overton, Hampshire are continuing. The company remained confident that neither the "physical security nor the security features in the paper have been compromised". De La Rue expects first-half profits to be at least £35m lower, due to professional fees - external lawyer are advising on the investigation, the writing off banknotes with quality problems and one-off costs.
The production problem has already cost the job of James Hussey, who resigned as chief executive in a last-ditch attempt to save a contract with Reserve Bank of India worth up to 25pc of the company's profits. He left with immediate effect last month after 27 years with the company. De La Rue said these matters had resulted in increased operating costs and lower volumes and would have a significant impact on its first-half pretax profit.
Source: Telegraph.co.uk
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Photo by Wikipedia: De La Rue plc. printing factory.
It gave no indication of how many staff were involved. The investigation into production irregularities at its printing plant in Overton, Hampshire are continuing. The company remained confident that neither the "physical security nor the security features in the paper have been compromised". De La Rue expects first-half profits to be at least £35m lower, due to professional fees - external lawyer are advising on the investigation, the writing off banknotes with quality problems and one-off costs.
The production problem has already cost the job of James Hussey, who resigned as chief executive in a last-ditch attempt to save a contract with Reserve Bank of India worth up to 25pc of the company's profits. He left with immediate effect last month after 27 years with the company. De La Rue said these matters had resulted in increased operating costs and lower volumes and would have a significant impact on its first-half pretax profit.
Source: Telegraph.co.uk
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