RBA sees value in Securency

The Reserve Bank of Australia increased the carrying value of its half-share in Securency to A$54 million at June 2011, up from $49 million a year earlier, the  Reserve Bank of Australia's annual report shows.

The revaluation is an interesting step given that Securency's profits fell heavily in the year to December 2010. The RBA said Securency recorded a net profit of $2.0 million in 2010 on revenues of $129 million.

In 2009, Securency reported a profit of $24.1 million on revenues of $173 million.

The firm - which makes polymer substrate for banknotes - is enduring its third year of adverse publicity arising from media allegations of bribery of foreign officials by sales agents, and the alleged involvement of some members of management in these practices.

In July 2011, the Australian Federal Police laid charges against Securency and Note Printing Australia (wholly owned by the RBA), and six former employees, including two former chief executives.

The RBA and its partner in the joint venture, Innovia Films, are presently seeking a buyer for the firm.