De La Rue warns on sales

20th Jul 2010 14:21

Shares in De La Rue fell more than 10% after the banknote publisher warned sales would be materially below earlier expectations.De La Rue said quality and production irregularities at one of its paper production facilities have very recently been brought to the board's attention. It is apparent that some paper production has failed to meet certain quality specifications, it added.As a consequence the production and shipment of this specification paper has been suspended whilst the circumstances are fully investigated. "The full impact on the current year financial results and on the group's prospects has yet to be determined. A further announcement will be made as soon as the board has been able to assess the financial and operational implications of these matters," it said."Subject to the outcome of that process and clarification of the company's contractual position it is now expected that paper production and sales in 2010/11 will be materially lower than originally planned."