It seems that making banknotes isn't a licence to print money after all. Shares in De La Rue have slumped 10% after the company warned sales would be materially below earlier expectations.
De la Rue specialises in printing banknotes but also produces specialist paper for around 150 central banks across the world, who use it to make their own currency.
The company discovered a few days ago that it had "quality and production irregularities" with paper production at one of its mills, believed to be Overton in Hampshire. Production of this paper has been suspended while the company investigates the problem and its contractual position, but the problem will lead to lower than expected sales in 2010/11.
The extent of the difficulty is unclear, so the company says the impact on its financial results and prospects is yet to be determined. The news has sent the company's shares tumbling 104p to 819.5p, making it the biggest faller in the FTSE 250.
