A FIRM printing UK banknotes, passports and postage stamps has confirmed it expects operating profits to be £20m lower.

The firm previously blamed a price war in the global banknote printing industry and a strong pound for the hit.

The company employs 600 staff at sites in Gateshead, and said it anticipates group operating profit for 2014/15 to be about £20m less than the underlying figure of £89.3m reported in 2013/14.

In a trading announcement for the period between September 27 2014 and January 29 2015, bosses said they expect its currency division to report volumes for 2014/15 of about 6.4 billion banknotes and nearly 9,750 tonnes of banknote paper.

The company has also revealed Colin Child will stand down as group finance director later this year.

Mr Child said: “I’m enormously pleased and proud to have played a part over the past five years with the team at De La Rue in improving the business.

“As the leader in its industry, and despite the current market conditions, the group is in good shape for the future.”

Philip Rogerson, De La Rue chairman, added: “Colin played an important role in the achievement of improvements to the business and took on additional responsibilities during periods of management change.

“He leaves with our very best wishes.”