In a trading update, the banknote printer says the demand for banknotes has been at the lowest levels for over 20 years, resulting in a low order book going into FY24.

For FY23, De La Rue expects adjusted operating profits to be a mid-single digit percentage below market expectations. Looking ahead, full year adjusted operating profit for FY24 is expected to be in the low £20m range.

"The downturn in currency, impacting both De La Rue and the wider industry, is causing a significant degree of uncertainty in terms of outlook for FY24," states the firm. "However there are encouraging signs that the market is recovering, with a significant number of new tenders actively underway but the timing of this recovery remains uncertain."

De La Rue has shed over 89% of its value in recent years after losing some big ticket clients and in the face of the wider market trend to digital payments.

The company has sought to diversify its business by moving into security and passport printing.

Given the downgrade, the company says it is in discussion with its lending banks in relation to seeking an amendment to its banking covenants, reflecting the revised outlook and also reflecting an increase in funding costs resulting from higher Bank of England base rates.

The company is also in conversations with the Trustee of the De La Rue Pension Scheme and has officially requested a deferral of the next £18.75m of deficit repair contributions.