THE world’s largest banknote printer has reported its six months profits have dropped by more than a third.

Basingstoke headquartered De La Rue is battling to deal with the strong pound and tough competition.

Underlying profit before tax fell by 37 per cent to £20.6million, in the six months to September 27.

For the same period last year it had reported profits of £32.8m.

Revenues are also down by eight per cent from £234m to £214.9m.

Back in September the 302-year-old company, which has a facility in Overton, had issued a profit warning, when it warned of deteriorating trading conditions.

De La Rue’s chairman Philip Rogerson, said: “While market conditions have resulted in lower revenues, we have partially mitigated the impact in the first half through cost savings from operational efficiencies and have commenced a further rationalisation of our manufacturing footprint.

“As previously announced, we expect the challenging trading conditions within the currency market to continue and this, together with lower than expected new business in our Solutions division, has impacted our outlook for 2014-15 and 2015-16.

“The board continues to believe that, while current conditions are tough, De La Rue remains a strong, profitable and cash generative business in a market with good medium and long term growth prospects.”

De La Rue’s newly appointed chief executive Martin Sutherland, was upbeat.

He said: “I am delighted to have joined De La Rue and I am confident that, notwithstanding the current challenging market conditions, the fundamental strengths of the business and the operational improvements achieved in recent years, position the group well.

“Over the coming months I shall be evaluating the strategy of the group and expect to report on this with the full year results in May 2015.”

Prior to joining De La Rue, he worked for BAE Systems Applied Intelligence, formerly known as Detica, where he was managing director.

He was responsible for the strategic expansion of the business internationally through both organic growth and a number of acquisitions.

During his tenure, revenues have more than doubled and the business today employs around 3,000 people across 26 offices worldwide, with over 50 per cent of the revenue now coming from new lines of business in counter fraud, cyber security and communications solutions.