Improved margins in De La Rue's banknote printing business helped boost the group's profits for the six months to 30 September.


Operating profit from continuing activities before reorganisation costs rose 8% to 27.6m.


Chief executive Ian Much said: "We are now enjoying a position of financial strength coupled with improved profitability, providing scope for growth investment."


New features such as machine-readable holographic threads have sold well, as has De La Rue's Intaglio Gold ink.


Security, paper & print sales increased 8.3% to 103.9m, with operating profits up 12.8% to 23.8m.


Papermaking volumes fell by 15%, with the likelihood that stocks will decrease by a further 15% next year, with India running down its stock levels and not placing any new orders.


[o] International venture capital firm Apax Partners is eyeing up acquisition opportunities in the UK security document field - including printers. The move follows hot on the heels of the
news that Apax has snapped up German print and security documents business Bundesdruckerei.