(Reuters) - De La Rue Plc (L:DLAR) said on Tuesday it plans to suspend dividend payment and review its business to cut costs, as its banknotes printing unit struggles with depressed margins amid stiff competition and growing popularity of digital payments.
The company's shares are expected to fall as much as 30% at the open, according to premarket indicators.
The passport and banknotes printer has suffered a series of setbacks, including two recent profit warnings, an investigation into suspected corruption in South Sudan and the loss of a 400 million pound contract last year for Britain's new blue passports.
The British company's shares plunged to their lowest level last month in more than two decades, following its last profit warning.
"We have seen significant changes since the start of the year in the market for currency ... and it will also take time for the currency market to normalise," recently appointed chief executive officer and turnaround specialist Clive Vacher said.
De La Rue reported an 87% plunge in adjusted profit to 2.2 million pounds for the six months ended Sept. 29.
However, the company forecast that the second half of the year would fare better, as it expects more favourable currency volumes and benefits from its cost cutting efforts.
De La Rue expects annual adjusted profit between 20 million pounds ($25.66 million) and 25 million pounds..