A HAMPSHIRE banknote printer has seen profits rise by 73 per cent amid reports it is getting ready to make drachmas in case Greece is forced to pull out of the euro.

De La Rue, which is the world’s largest commercial banknote producer, printing notes for the Bank of England and 150 other countries, said underlying profits rose to £57.7m in the year to the end of March as it benefited from a recovery plan.

Orders at the Basingstoke-based firm’s currency business were up 18 per cent to £183m, although it warned the market is becoming more competitive as rivals add additional capacity.

But, as reported, speculation is rife De La Rue could be a major beneficiary if Greece crashes out of the euro.

The company is reported to be preparing to print an alternative Greek currency, and has retrieved old moulds of drachma notes.

Chief executive Tim Cobbold said: “We have been far more successful in the marketplace than we have been in the past few years – of all the notes issued in 2011, we designed one in two, right across the world.”

De La Rue said its improvement plan, introduced a year ago, was on track to boost operating profits to more than £100m in the year to the end of March 2014 – nearly double the £63.1m in the past year.

It followed a scandal in 2010 when it was claimed employees had faked paper specification test certificates, which led to the resignation of its former chief executive.

The company said discussions are still ongoing with the customer involved in the incident – believed to be the Reserve Bank of India – and the financial impact of the issues remained “uncertain”.

Mr Cobbold declined to comment on speculation that it has drawn up contingency plans to print drachma banknotes should Greece exit the euro.

An industry insider said Basingstokebased De La Rue needed to prepare for the possibility of a Greek exit from the single currency, which would spark demand for the return of the drachma.

Analysts said if Greece decided to pull out of the euro, the country’s state printing works may need to call upon external companies to help produce new banknotes, opening opportunities for the likes of De La Rue.

Investors have been busy buying up De La Rue shares in anticipation. The share price has risen 13 per cent since the start of April to over £10.

De La Rue is the the world’s largest commercial banknote printer, producing over 150 national currencies.