De La Rue shares fall on concerns over the banknote firm’s future

Passport and banknote firm De La Rue has seen more than a fifth wiped off its stock market value after the firm warned there was a risk it could collapse if recovery efforts fail.

The firm sparked another plunge in shares as it alerted in half-year results over a “material uncertainty that casts significant doubt on the group’s ability to continue as a going concern”.

While it said this was only likely in a worst-case scenario, one expert said De La Rue was now left “teetering on the brink”.

The share price drop – which has seen shares plummet by two-thirds in the past six months alone – means De La Rue owes more in net debts than its stock market value.

De La Rue manufactures about a third of the world’s banknotes and employs more than 2,500 people.

It has suffered a torrid past couple of years, having suffered heavily from losing out on the contract to print British passports to a French company.

The group has warned over profits twice in recent months and its half-year results laid bare the extent of its woes.

De La Rue posted a £12.1 million pre-tax loss for the six months to September 28 against profits of £7.1m a year earlier.

Underlying operating profits crashed 87.1% to £2.2m over the first half.

New chief executive Clive Vacher – who replaced former boss Martin Sutherland, who quit in May after a previous profit warning – said he is taking “urgent actions” under a turnaround plan to revive its fortunes.

The firm is also halting shareholder dividend payments and ramping up cost-cutting.

The firm said it was too early to comment on any potential impact on jobs.

As well as dire trading, Mr Vacher is also having to contend with a Serious Fraud Office investigation into alleged corruption at its South Sudan business.

Shares in De La Rue fell 41.20p to close at 134.00p.