Collapse on the cards for Tesco Clubcard firm

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ID Data is the biggest supplier of smart cards to companies and Government departments.

It is also a frontrunner to win contracts for the Government's controversial ID cards scheme.

However, the business has been rapidly running out of cash and its attempts to raise new funds from investors have ran aground amid the current turmoil in the stock market.

Today it said it had started the process of appointing administrators to protect itself from creditors.

It appears that Revenue & Customs has refused to allow the company to postpone its tax debts.

The company hopes to find a buyer for the business.

ID Data is already the biggest supplier of smart cards to the UK Government.