The Mitcham-based company said that the £1.2m machine will be replacing a six-colour B1 press, rather than being used to provide new services. The new machine will be delivered this Friday.

APG started out as a B2 printer, before moving into the B1 market when it found run lengths on the increase. This situation reached a nadir three years ago when it took the decision to move away from B2 printing all together.

However, managing director Robert Aldridge said: "In the past 18 months, order values have been decreasing, pagination is smaller and run lengths are smaller.

"We are repositioning ourselves, rather than going on in an area where margins are more fiercely fought. We are upgrading from a tired B1 six-colour to an extremely advanced B2 press. We are not entering a new market place, we are offering an existing product line with better profit margins."

Aldridge added that the savings were likely to come from a decrease in waste paper. He predicted that it would save the equivalent of 2m B2 sheets a year, in make-ready alone.

The investment continues a positive year for APG. Its six-month sales figures for January to June are up 26% on the previous six months and its current turnover is projected to be around £7.8m.

In December last year, it invested in a digital department, which is expected to record a turnover of more than £500,000 a year from a standing start.

Aldridge added: "We are focusing on our long-term business plan. Prior to January, we offered B1, but now we can offer our customers B1, B2 and digital. We have some excellent customers and we want to be able to offer them a complete service."