In a trading update filed today (30 May), De La Rue said its board had undertaken a review of the group’s core strengths and “how best to optimise the underlying intrinsic value of the business” for the benefit of all its stakeholders.

De La Rue has two divisions: Currency and Authentication.

As a result of the review, De La Rue’s board said it was in discussions with a number of parties “who have made proposals in relation to, or expressed interest in, either of the group's divisions, although at this stage there can be no certainty that the interest received by the company will result in a transaction(s), nor as to the terms of any such transactions.”

Chairman Clive Whiley commented, “Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group's divisions.

“The Board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full year results in July.”

De La Rue had previously planned to release its results on 18 June.

The venerable security printer has a corporate history dating back for more than 200 years but has been under pressure in recent times after a run of poor results and the hammer blow of losing the UK passport contract.

It is also under pressure from activist investor Crystal Amber, which is De La Rue's largest shareholder with a near-17% stake.

Earlier this year the fund stated: “Crystal Amber remains of the view that the strategic value of De La Rue is substantially more than its operational value and that it is now a highly attractive takeover target in an industry requiring consolidation.”

Last month the fund’s investment adviser Richard Bernstein said: “We think De La Rue is a sitting duck for corporate action.”

This morning he posted on X: “We own just under 17% of the equity and have a 150p target price, as a break up looks inevitable.”

De La Rue’s shares jumped 8% in early trading today to a new 52-week high of 107p (low: 29.10p).

Back in 2018, before the controversial loss of the passport deal to a French competitor, the share price was more than £6.40.

The group currently has a market capitalisation of around £200m.

In the trading update De La Rue reported positive momentum at both Authentication and Currency with contract extensions and new business wins.

Currency’s order book grew to £239m and Authentication now holds multi-year contracts with “anticipated future revenues of over £350m”. The division had sales of £254.6m in the last financial year.

For FY24 the Authentication division is expected to report revenue of more than £100m for the first time. Sales last year were £91.7m.

Group operating profit is likely to be in the low £20m range.

In 2022/23 De La Rue made an operating loss of £29.6m on continuing operations due to massive exceptional charges of £47.1m.

More than a decade ago, De La Rue rebuffed a 935p per share takeover bid from continental rival Oberthur.