Head of corporate affairs Mark Fearon said it had always been Muchs intention to retire when he was 60 and so the succession issue was being addressed.

But a Financial Times report said investors representing more than 20% of the shares indicated that after discussions with the firm they expected him to leave this year. It suggested that James Hussey, divisional managing director of Currency, could be a contender to succeed Much, but Fearon refused to comment.

It follows news that De La Rues holographic subsidiary was being investigated in the US over claims of price fixing for holograms supplied in 1997 (see p16).

Muchs future is likely to be high on the agenda at De La Rues AGM today (17 July) after a year that featured three profit warnings and slow sales in De La Rues cash systems division.