World’s largest printer of money is running out of money
In the United States, the task of printing money and minting coins falls on the Bureau of Engraving and Printing, which is part of the Treasury Department.
But in the United Kingdom, a private company prints the nation’s bank notes and passports — and it is running short of cash.
De La Rue, which has printed banknotes for the Bank of England since 1860, and also prints currency for 140 other countries, last week issued a warning that there was “significant doubt” about its future.
It is the largest commercial printer in the world, produces passports for 40 countries, and has designed 36 percent of all banknote denominations in circulation, according to investment research company Edison Group.
Yet the company reported lackluster 2019-2020 half-year financial results, and has lost 20 percent of its value just in the past week.
“There can be no denying that De La Rue’s finances look precarious,” Russ Mould said, investment director at A.J. Bell.
Despite having major contracts, De La Rue has suffered two major setbacks in the past year that have thrown the company’s future into question. In 2018, De La Rue lost the contract to print the United Kingdom’s new blue passports after Brexit is completed. That contract went to Gemalto, a German company.
“With a contract value of approximately £260 million, this will deliver significant savings compared to the £400 million contract awarded in 2009 and provide value for money to the taxpayer,” the UK Passport Office said in a statement. The contract is also expected to create new jobs at Gemalto’s UK office.