De La Rue PLC (LON:DLAR) got a lift on Tuesday after the Bank of England revealed that it has award the secure printing firm, together with Australia’s CCL Secure, a contract to produce polymer for future plastic banknotes.
In a statement on its website, the BoE said it has awarded the two companies an eight-year contract to produce the polymer for a new plastic £50 banknote and future £5 and £10 notes.
READ: De La Rue boss steps down as secure printer issues profit warning, unveils cost-cutting plan
De La Rue is currently responsible for printing all Bank of England notes at a BoE facility in Debden eastern England having entered into a 10 year contract commencing April 2015.
CCL Secure, previously known as Innovia Security, is currently the sole producer of the polymer substrate for £5 and £10 notes.
De La Rue will provide 45% of the substrate for the initial launch stock of £50, and CCL 55%, starting next year. CCL and De La Rue will also supply substrate for future £5 and £10 notes. The bank said it has decided that the composition of the polymer for the £50 will be the same as for the current £5, £10 and £20 notes.
The polymer £5 note, featuring Winston Churchill, was first issued on 13 September 2016; the polymer £10, featuring Jane Austen, was first issued on 14 September 2017; and the polymer £20, featuring JMW Turner, will be issued in spring 2020. The bank said the character for the new £50 is due to be announced this summer.
In afternoon trading, shares in De La Rue were 1.3% higher at 307p having suffered a slump last week after the firm announced the departure of its chief executive, Martin Sutherland alongside a profit warning and the launch of a three-year cost-cutting programme to offset the impact of losing a key contract with the British government to provide UK passports.