De La Rue, which has produced notes for the Bank of England since 1860, warned there is "significant doubt" about its future.
The 198-year-old company is the largest commercial currency printer in the world, making an estimated third of the world's banknotes via contracts with 140 central banks.
But the firm has been under significant pressure for the last two years, with mounting pressure following the loss of the £400 million UK passport contract.
Russ Mould, the investment director at AJ Bell, said: “Just when you thought it couldn’t get any worse for De La Rue along comes another wave of bad news.
“In an increasingly cashless world, one has to wonder just how long De La Rue can survive without a radical change to its business model.
“The business seems to have fallen flat on its face as a result of poor management decisions at a time when it needed superior leadership to navigate difficult market challenges. Sadly shareholders are now suffering the consequences.”
De La Rue, which has designed 36% of all banknotes in circulation, has seen its shares drop significantly, with reports at the end of last month saying it had lost £36m off its value.
But despite its difficulties, Basingstoke-based De La Rue can rest safe in the fact the market for cash is still expected to grow – despite the rise in cashless payments globally.
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“It is possible that – in a very worst case – the government would find a friendly buyer, presumably a domestic one with security skills and existing links to the Ministry of Defense and Home Office," Mr Mould added.
“Hopefully, it won’t come to that and De La Rue has enough breathing space to trade through its current difficulties.”
The company said it hopes to deliver a turnaround under its new chief executive, Clive Vacher, as well as by cutting costs.
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