BANKNOTE printer De La Rue intends to ramp up its cost-cutting drive after competition and order delays pushed its full-year revenue down 8 per cent.

The firm, which employs about 400 staff at its largest UK factory in Gateshead, said that it would now aim to make annual savings of £40m  under its Improvement Plan in the year ahead, £10m higher than the original target.

Underlying pre-tax profit in its full year results rose 2 per cent to £59m, in line with analyst forecasts, which excludes a £7.6m charge linked to the cost of implementing the improvement plan.

The 8 per cent fall in revenue to £484m was blamed on lower volumes in its currency division which accounts for more than 60 per cent of De La Rue's revenue.

The 12 month order book in the division was down 14 per cent to £158m, but the firm said that it saw a strong pipeline of new opportunities, which it expected to convert to orders for delivery in the coming year.

The firm announced in February that it faced stiff competition in the banknote market after some rivals added new capacity.

That was after it issued a profit warning in November on delays in some of its currency contracts. It said today (Wednesday) that some of these orders have now been received.

Its contract with the Bank of England to print British pound notes is up for renewal with an announcement expected by the end of the year.

"We enter the new financial year with increased cost savings identified and a strong pipeline of order opportunities, more than 10 per cent higher than at the same time last year," said chief executive Tim Cobbold.

"Whilst these opportunities must be secured for delivery in the year, the board remains confident of achieving the 2013/14 Improvement Plan target of an operating profit in excess of £100m."

De La Rue set the earnings goal two years ago as part of a turnaround plan launched after the group was rocked by a scandal in 2010 when it was claimed employees had falsified paper specification test certificates.

It lost its biggest customer - the Reserve Bank of India - as a result and the crisis also led to the resignation of its former chief executive. 

Since then, De La Rue has been slashing costs and improving business processes to help profits recover.

Measures have included shutting its factories in Basingstoke and Dunstable and relocating the operations to sites including Gateshead.

It is also cutting costs from suppliers and improving manufacturing efficiencies. 

The company, which was founded by Thomas de la Rue in 1813, employs about 4,000 people worldwide and also produces a wide range of security documents including passports, driving licences, authentication labels and tax stamps.