Rumours of a sale were compounded following reports De La Rue had ordered its bank, NM Rothschild, to send out memorandums in advance of an auction for the division, which could fetch up to £500m.

According to the Daily Telegraph, the firm has "given the greenlight" to a break-up, with trade buyers and private equity firms said to be circling.

In the trading update, De La Rue claimed "year-on-year revenue and margin improvement" and said Cash Systems had performed in line with expectations despite the "uncertain financial environment".

De Lar Rue is currently undergoing a strategic review, which it launched following its half-year results in November 2007. A spokesperson for the company would not comment on the most recent sell-off rumours, but said: "We remain committed to seeing the review process through."

Rothschild declined to comment on the reports.