De La Rue Value Dips by 10% After Audit Finding of “serious Irregularities”: COO Quits Following Revelation
De La Rue’s finance director, Colin Child, has taken on the post of chief operating officer on an additional basis.
De La Rue is the largest producer of bank notes in the country.
Colin Child took on the additional role as Chief Operating Officer after the senior manager who held the post quit.
An internal audit found that there were “serious irregularities” in the production process of the company’s Hampshire factory. The previous Chief Operating officer quit after this revelation came about.
When news spread that the Chief Operating Officer James Hussey resigned from his services to the company, shares fell to 711.5 p as the company’s value dipped by 10%.
The Independent reported that De La Rue had initially revealed on July 20 of this year that there were ‘quality and production irregularities’ in relation to the testing of paper specifications. But yesterday it confirmed that the problem was of a much more serious nature.
Production at De La Rue’s Hampshire factory has been suspended for the time being. Company officials have however said that production will start soon in the factory as soon as the irregularities are taken care of.
The company has stressed that the quality of its other production houses will not be hampered at all as work in them continue as usual. It also said that the security features that are incorporated into the paper that is used for printing note money has not been compromised.
Nicholas Brookes, who is De La Rue’s non-executive chairman will now have to look after executive responsibilities as well.
Child and Brookes will be continuing to hold their new roles in the company till the time a new Chief Operating Officer is found.