Mounting risks and debts have seen De La Rue warn that it might not be able to continue operating as a going concern if more than one thing goes wrong at once.

While it said this was only likely in a worst case scenario, one expert said De La Rue was now left "teetering on the brink".

Shares plunged as much as 24% on the news as the firm announced it would halt payouts to investors to try and get debts under control.

The share price drop – which has seen shares plummet by two thirds in the past six months alone – means De La Rue owes more in net debts than its stock market value.

Chief executive Clive Vacher said: "We have seen significant changes since the start of the year in the market for currency."

He added: "We have already identified and started to implement the urgent actions needed to stabilise the business… With strong emphasis on cost control and cash management, coupled with a focus on innovation and reversing the revenue decline, we will become a leaner, more efficient company and drive shareholder value."

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De La Rue manufactures about a third of the world's banknotes and employs more than 2,500 people. The firm said it was too early to comment on any potential impact on jobs.

The group has warned over profits twice in recent months and its half-year results laid bare the extent of its woes.

It has suffered a torrid past couple of years, having suffered heavily from losing out on the contract to print British passports to a French company.

There is also an £18 million black hole in the accounts after the company revealed in May that the Venezuelan central bank has been struggling to pay its bills.

It's latest results show De La Rue posted a £12.1 million pre-tax loss for the six months to September 28 against profits of £7.1 million a year earlier. Underlying operating profits crashed 87.1% to £2.2 million over the first half.

Neil Wilson, chief market analyst at Markets.com, said there may be more pain to come for investors.

"De La Rue is teetering on the brink," he said.

"Far from 'drawing a line' under the previous performance before the arrival of Mr Vacher and [chairman] Mr Loosemore, the profits warning in October – the second this year – was only the meat in the rather unsavoury sandwich."

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