Money-maker De La Rue's shares have plummeted 21% after the company issued a warning that its business could be at risk if trading conditions continue to worsen.
The business, which has a major factory in Gateshead, Tyne & Wear, said that if its situation continues to get worse it could breach its banking covenants.
As a result the company has said in its half year results that “there is a material uncertainty that casts significant doubt on the Group’s ability to continue as a going concern”.
The firm cited multiple issues that could negatively impact its business, including that it might not be able to generate the necessary cost savings that would allow a significant contract to become profitable enough. It also said a major problem could stem from the timing of revenue recognition on jobs for delivery for the current financial year.
Chief executive Clive Vacher said the group had been hit by a raft of management changes and an increasingly competitive banknote printing market, but is expecting a better second-half performance.
Mr Vacher said: "The business has experienced an unprecedented period of change with the chairman, CEO, senior independent director and most of the executive team leaving or resigning in the period.
"This has led to inconsistency in both quality and speed of execution.
"The new board is working to stabilise the management team, which we believe will take some time."
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He added: "Between now and the end of calendar first quarter 2020, we will complete a full review of the business and design a comprehensive turnaround plan for the company."
Turnaround specialist Mr Vacher replaced Martin Sutherland, who quit in May following a previous profit warning.
Mr Vacher's turnaround will also have to contend with a Serious Fraud Office investigation into alleged corruption at its South Sudan business.
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.
De La Rue manufactures about a third of the world's banknotes and employs more than 2,500 people.
But last year it lost the contract to print British passports to a French company which led to activist investors calling for a major overhaul of the business.
The pressure resulted in non-executive resignations, including chairman Philip Rogerson, who stood down to be replaced by Kevin Loosemore.
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De La Rue has also told shareholders it is suspending the payment of dividends while it tries to get the business back on track.
Revenues from customer contracts fell from £257.6m in the first half of last year to just £232.3m for the six months ending September 28.
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Meanwhile the firm made an operating loss of £9.2m, down from a profit of 10.1m. After tax, the business made a loss of £10.1m.
De La Rue was particularly hit when it lost a major contract to print the 海角视频’s blue passports.
Shares in De La Rue plummeted 18% in early trading after its first-half results.
Unite national officer Louisa Bull said: “This is very worrying news today and we are seeking urgent clarification from the company about the future.
"The employment security of our more than 250 members at Gateshead, and at Debden where we have about 150 members, as well as those at other smaller sites across the 海角视频, is Unite’s prime concern.
“The potentially precarious future of De La Rue, a major 海角视频 manufacturing company, should be ringing alarm bells across government.
“Unite will be doing all it can in supporting our members at this very difficult time and will continue to campaign strongly to keep vital printing work in the 海角视频.
“We have previously criticised the government’s short-sighted and blinkered decision to award the printing of post-Brexit 海角视频 passports, worth £490m, to French-Dutch firm Gemalto as it seriously undermined the financial viability of the Gateshead operation.”