De La Rue abandons UK passport appeal

De La Rue has said it will not appeal against the decision by the UK government to award the contract for the post-Brexit passport to rival Gemalto.

The failed bid – which cost around £4m ($5.7m) – as well as some delayed contracts have also led the company to trim its operating profit prediction for the year to March 31 to the low- to mid-£60m range, down from an earlier estimate of £71m-£73m.

“De La Rue will continue to fulfil its existing contract and assist with transition to the new supplier, and is therefore expecting no impact on the group’s performance in the next 18 months,” said the company in a statement.

The Unite union – which came out in support of De La Rue’s earlier announcement that it intended to mount an appeal – said the latest decision would “come as a bitter blow to De La Rue workers who now face an uncertain future.”

“For the last decade De La Rue has produced the UK’s passports securely without any problems and provided a source of decent well-paid jobs in the North East,” said Unite national officer Louisa Bull.

“Theresa May and her government is now putting all that at risk with little thought of the consequences or the shockwaves that it will send through the community and local economy,” she added, saying that the union is “mobilised and prepared to fight the government’s decision.”

Photo by Annie Spratt on Unsplash