Scandal leaves money printer out of pocket

The world's biggest banknote printer has warned that its volumes are set to drop 20 per cent this year after a production crisis that involved staff allegedly fudging quality-control paperwork.

De La Rue - which prints notes for the Bank of England and more than 150 national currencies - said the production woes, which led to the resignation of chief executive James Hussey, cost the group 35 million but the impact on its full-year results was still unclear.

The group claimed earlier this year that some employees falsified paper specification test certificates for some banknote customers after an investigation into production failures at a plant in Hampshire. While De La Rue has concluded its own inquiry, an investigation by the Serious Fraud Office is ongoing and the company said it was not in a position to comment further.

The firm suspended production and shipment of the affected banknotes in July for two months while the matter was investigated.