City shocked as money-man quits money-maker De La Rue

Money-printer De La Rue suffered a share price blow-out on Tuesday after it warned of weaker profits and the finance chief resigned.

The company, which makes the new polymer £5 and £10 notes for the Bank of England, fell up to 21% but recovered later to settle down 11% at 536p, its biggest share move in three years.

Chief financial officer Jitesh Sodha will step down from the board immediately but stay on as finance chief until September.

The company, led by chief executive Martin Sutherland, also said profits would be at the lower end of a £71 million to £73.5 million range.

The business — which also makes the British passport — said Sodha’s departure and the lower profits were unconnected.

De La Rue posts results next month and Accendo Markets’ Mike van Dulken said the lack of detail in today’s statement was “even more intriguing”.

However, JPMorgan analyst Alexander Mees said there was nothing to read into the state of De La Rue’s business or its prospects from Sodha’s departure, and that the move was a personal decision.

Investec’s Thomas Rands also said the share price drop was an “over-reaction” and offered an opportunity to buy the shares.

Before Sutherland took over, De La Rue had a track record of noisy profit warnings, including a 25% share price drop three years ago when it warned of lower profits.

Since then, the firm has managed to get back on its feet winning a string of new contracts and slimming down its bloated operations.

Sutherland recruited Sodha in August 2015 to help with his turnaround of the business.

Before De La Rue, Sodha was chief financial officer of fuel supplier Greenenergy and T-Mobile.

De La Rue was subject to a 935p per share hostile bid, 80% higher than today’s price, from French rival Oberthur in 2011. The offer was later dropped.