A BASINGSTOKE-based firm has decided to drop its appeal against the government.

De La Rue, based in Jays Close, has decided to drop its appeal against the government over the awarding of a contract to a Franco-Dutch company to make the new blue UK passports after Brexit.

A statement on De La Rue's website read: “Having considered all options, the group today (Wednesday) announces it will not appeal against HMPO’s (Her Majesty's Passport Office) decision on the UK passport tender. 

“De La Rue will continue to fulfil its existing contract and assist with transition to the new supplier and is therefore expecting no impact on the group’s performance in the next 18 months.”

The government has come underfire for its decision to choose a European firm for the contract, but claimed it will save £120 million over the 11-and-a-half-year contract.

The appeal had come after a petition calling for the Home Office to give the contract to a British firm reached more than 266,000 signatures.

De La Rue’s decision to drop the appeal comes after it has already come under pressure on the stock market, seeing shares drop last month after it warned over profits and announced the departure of its finance chief.

As well as the passport bid hit, De La Rue said earnings have also been impacted by delays in the shipment of “certain contracts” in the last week of March.

In it’s statement De La Rue added: “At this early stage of the new financial year, the group is cautious about the out-turn for the full year, however it starts off with a satisfactory order book.”

In December, the government announced that the UK passport would change from the standard EU burgundy colour to a blue and gold design after leaving the bloc.

The blue cover was billed as a return to the “iconic” original appearance of the British passport, with the colour first used in 1921.