Adjusted profits at De La Rue fell 36% in the six months to 29 September compared to the same period a year earlier.

In the first results since losing the contract to make British passports, the company said it has had to strategically review its operations.

Revenues increased by 5% to £257.6 million.

The group’s contract for British passports, which it has had since 2008 and is worth £400 million, will end in 2019. Replacing the company will be the Franco-Dutch group Gemalto.

Martin Sutherland, the group’s chief executive, said: “Over the last six months we have conducted a thorough review of our strategy and market positions. In the light of the UK passport decision, we have concluded that we will refocus our identity business on the supply of higher margin security features and components.”

“We maintain a strong order book and pipeline which provides good visibility for the second half of this year and into next year. With good revenue coverage from the group’s 12-month order book of £365 million and based on the orders planned for production and shipment in the second half, we are confident that we will meet our expectations for the full year.”

The decision to end De La Rue’s contract was a controversial one. The group employs 600 people at the printing plant in Gateshead.

“We have a very skilled, proud workforce in Gateshead and I am going to have to face those workers, look at them in the whites of the eyes and try to explain to them why the British government thinks it’s a sensible decision to buy French passports not British passports,” said Sutherland when the decision was announced earlier this year.

“I would like to invite Theresa May or Amber Rudd to come to my factory and explain to my dedicated workforce why they think this is a sensible decision to offshore the manufacture of a British icon,” he added.

Shares in De La Rue are trading +5.74% (1058GMT).