(Recasts with CEO comments on review of cash-sorting machinebusiness)
LONDON, Nov 24 (Reuters) - Banknote printer De La Rue said it would launch a "root and branch" review of itscash-sorting machine business after the company's first-halfprofits fell by more than a third.
De La Rue said it was confident about its full-yearperformance as the value of its order book had risen, but alsosaid market conditions remained volatile.
The cash processing solutions business, which includes thesale and maintenance of high-speed sorting machines to printworks and banks, slid further into the red in the period,recording an operating loss of 4.7 million pounds ($7.11million).
This business accounts for about 10 percent of grouprevenue, according to the company's latest annual report.
The loss helped to push overall pretax profit in the sixmonths to Sep. 26 down 38 percent to 12.8 million pounds.
Chief Executive Martin Sutherland told Reuters that demandat the cash-sorting machine business had been weak so far thisyear.
"Our order intake in the first half was quite poor hence weneed to look at our pricing and therefore our unit cost ofproduction," he told Reuters.
"We will review all options for that business movingforward."
De La Rue, which prints more than 150 national currenciesand British passports, said print and paper volumes had beenbetter than expected thanks to large orders from countries,which usually print their own banknotes, needing extra cash.
Its shares were 1.6 pct higher at 452 by 0844 GMT. ($1 = 0.6612 pounds) (Reporting By Costas Pitas. Editing by Jane Merriman)