20th Jan 2023 10:14
(Alliance News) - De La Rue PLC on Friday assured investors of business opportunities in Kenya and elsewhere, after suspending its printing operations in the East African country on reduced orders.
De La Rue is a Basingstoke, England-based company which designs and produces banknotes, secure polymer substrate, and banknote security features for central banks and currency issuing authorities.
For the next twelve months, De La Rue has suspended banknote printing operations in Kenya on reduced demand. It operates in the country through a joint venture with the government of Kenya, in which the Nairobi government holds a 40% equity share.
The company noted that the joint venture remains active, and said it was exploring business opportunities with a view to restarting production "if the economic climate permits".
De La Rue continues to operate with three banknote sites in the UK, Malta and Sri Lanka. This is a reduction from five sites operating in 2020.
The company also addressed several legal issues in its update to investors on Friday.
Last week, the High Court in Nairobi dismissed an appeal from one of De La Rue's subsidiaries related to a historical tax issue, equating to GBP7.2 million at today's exchange rate.
De La Rue said it was disappointed with the ruling, and added that its subsidiary was preparing a further appeal.
Meanwhile, the company has been made aware of an investigation into the conduct of Arvind Mayaram by the Central Bureau of Investigation in India. Mayaram is the former Indian Finance Secretary.
The investigation implicates the historical activities of De La Rue in India prior to 2016. The company said it has not received any direct communication of the investigation from the bureau, and noted that it has not served the government of India or the Central Bank of India in any capacity since 2016.
"The company believes that there is no merit to the allegations that relate to De La Rue and is seeking legal advice in this regard," De La Rue told investors.
De La Rue shares were trading 5.2% lower at 74.75 pence each in London on Friday morning.
By Holly Beveridge; Alliance News reporter
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