De La Rue Considering Appeal After Losing UK Passport Contract

22nd Mar 2018 09:50

LONDON (Alliance News) - Banknote printer De La Rue PLC said Thursday it was "disappointed" to have lost a contract to make the UK's passport, adding that it may appeal to the decision.

De La Rue has held the GBP400.0 million contract over its ten-year cycle for nine years, with it due to expire in July next year.

The company said it expects the loss to have no impact on its current or next financial year, and added it may appeal the decision.

The Financial Times had reported on Wednesday De La Rue was set the lose the contract, which has been awarded to French firm Gemalto.

Shares fell in De La Rue on Tuesday as Chief Financial Officer Jitesh Sodha announced his departure from the company amid a cautious forecast for full-year profit.

Shares in the company closed down 14% at 519.00 pence on Tuesday and were down a further 0.4% at 517.00p early Wednesday. On Thursday, they were down 4.8% at 480.00p.

Sodha resigned with immediate effect after three years in the role but will remain with De La Rue until the end of September to ensure an orderly transition while a successor is found.

De La Rue had said it expects the outturn for the year ending March 25 to be at the lower end of its current consensus range.

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