The boss of De La Rue leaves after losing his blue passport post-Brexit | Business

The British ticket printer De La Rue is separating from its managing director a year after losing the battle for a £ 490 million contract for printing the post-Brexit blue pbadport.

The company revealed a 77% drop in pre-tax profits and warned that stiff competition would contribute to "slightly lower" profits next year. The company should now reduce its costs by £ 20m.

Group shares plunged nearly 20% to 370p.

The British printing firm said it had "agreed" with Martin Sutherland to resign after five years as boss, although the company has not yet named a replacement. He will continue in his role until a replacement is found.

The news follows a highly publicized battle over a £ 490m contract to print the British post-Brexit pbadport, which was handed over to the Dutch-French company Gemalto.

When it became apparent that the government had chosen the foreign rival of the companies, Sutherland had pledged to appeal the decision, inviting Theresa May to go to her factory and explain to her staff why he was safe. was acting "a judicious decision to entrust abroad the manufacture of a British icon".

But Sutherland gave up the call only a month later, saying the company had made a "pragmatic business decision" after taking legal advice.

Company Chairman Philip Rogerson said the outgoing CEO has helped move the company from a "traditional manufacturing business to a service-oriented business."

"The company is now well positioned to move to the next phase of this journey," he said.

The company announced the exit from Sutherland in conjunction with its annual results, detailing a cost reduction plan and a significant drop in pre-tax profits of £ 113.6 to £ 25.5 million.

Sutherland said that the end of his pbadport deal with the UK in 2020 and the "competitive pressure in the banknote printing market" presented "significant challenges for the sector".

"To partially mitigate this problem, we have launched today a three-year cost reduction program aimed at generating annual savings of more than 20 million pounds by the year 2022," did he declare. "In addition, we will be proposing a reorganization of our operations over the next 12 months, with the goal of strengthening our strategic focus and generating greater efficiencies."

The outgoing leader said that the last five years at his post had been marked by "a major structural change in the sector and a real strategic change within the company".

"With a clear strategic vision now in place and under execution, now is the time to move the baton to a new leader, to move on to the next step. I wish the board and the company every success.