A BANKNOTE and passport maker expects profits to reach top-end estimates after demand for security products smoothed its progress.

De La Rue says it has experienced good growth across passport operations and its product authentication division, which tackles forgers through anti-counterfeit and fraud measures.

Bosses say the successes mean they now expect stronger full-year underlying operating profits.

According to a trading update for the year to March 25, released yesterday, the Gateshead-based business also received a boost in the export market, thanks to sterling’s post-Brexit weakness.

However, officials said those gains were offset by increased spending on research and development and product management, and the rising cost of raw materials.

A spokesman said: “Underlying operating profit is now anticipated to be above the top end of the market consensus.

“This outperformance has been driven by good growth in identity systems and product authentication and traceability products, while the currency business has performed in line with market expectations.”

Last year, The Northern Echo revealed De La Rue, which employs hundreds of workers at Gateshead, could make passports for the post-Brexit era in the North-East.

Campaigners want existing burgundy books to be scrapped in favour of a return to a dark blue passport, to reflect the country’s impending status outside the EU.

The company has already made millions of UK passports and Martin Sutherland, chief executive, said it would be willing to support Downing Street on any changes, having already helped the Passport Office on a new-look permit, which includes enhanced security features.

He said: “We would be delighted to work closely with the Passport Office for requirements on the British passport.

“We have a contract that runs until 2019 and we have been working with them on that for a number of years.

“We work on the current design, so if they came to us about alternative designs, we would be delighted to help.”