At the same time the company has bought security gravure printer House of Questa in a 3.2m deal.

The news follows De La Rues announcement in May that it was to embark on a review of its manufacturing operations, after issuing below-par results.

At the time the company had already cut 70 jobs from High Wycombe, which was described as giving cause for concern.

De La Rues head of corporate affairs, Mark Fearon, said the closure of High Wycombe was a move to address overcapacity.

To remain competitive we have to remain fleet of foot, something we have failed to do in the past, he said.

The reorganisation will involve additional development of the groups facilities at Dunstable and Peterborough, and its overseas plants at Dulles in the USA and Nairobi, Kenya.

The group will take an exceptional charge in the current financial year of around 17.7m. It has entered into a 90-day consultation period with its workforce and the GPMU, but Fearon said there would be a limited number of opportunities for employees to transfer to the Questa site at Byfleet, and the Peterborough and Dunstable operations.

House of Questa prints postage stamps and vehicle tax discs and employs 75 staff, all of whom will be retained, said Fearon.

Dunstable and Peterborough will be the focus of additional investment. Both sites will be run as centres of excellence, with Peterborough focussing on cheque printing alone and Dunstable on web printing.

Story by Andy Scott