Passport printing firm De La Rue (LON:DLAR) saw an 11 percent fall in adjusted operating profit for the year to the end of March, with concerns over the loss of its contract to print the new blue passports weighing on results.

The group also suffered from loss of revenue from its exited paper business, with operating profit dropping to £62.8 million. Group revenue rose 7 percent to £493.9 million.

“Solid growth in all segments has been offset by strategically focused increases in investment in R&D and sales, which will drive long term sustainable growth,” the company said.

“The sale of the paper business and the associated long term paper supply agreement have reduced our exposure to the volatility of the oversupplied paper market, while securing the surety of supply for our print business,’ said Martin Sutherland, Chief Executive Officer.

“Through this, and good cash generation from the business, we have significantly strengthened our balance sheet with net debt now at its lowest in five years. The stronger balance sheet provides the Group with greater flexibility to allocate capital to deliver long term shareholder value.”

Shares in De La Rue are currently up on the news, at 518.00 (0902GMT).