The company said it has also been affected by the adverse weather conditions towards the end of the year, which have caused disruption to customer sales ordering and supply delivery. This resulted in a soft last quarter, and had a negative impact on results.

Turnover for the year ended 31 December 2010 increased by 10.8% to £207.6m, while net debt increased from £27.8m to £31.4m in 2010.

As part of its restructure plans, it acquired the Print Factory London (1991) (TPF) in February 2010, which Moate said strengthens its volumes and customer proposition in the market.

This resulted in a one-off charge of £3.9m to cover the acquisition and subsequent integration.

Office2office chief executive Simon Moate said TPF "has been successfully integrated" with AccessPlus, and re-launched as Banner Managed Communication (BMC). BMC now provides print management and direct marketing services.

He said the business remains optimistic about its long-term future, and that following decisive measures taken during the past year, it feels well positioned to manage challenging times ahead.

The company has invested and changed its business focus and extended its traditional office products business. It has also grown sales in the private sector, which now accounts for almost two-thirds of its sales mix.

Moate said: "Our business has been transformed from a commodity stationery supplier to the public sector to a managed services organisation serving both corporate and public sector.

"We are well positioned to benefit from economic recovery and excited about the emerging opportunities being presented to us."

The company added that trading for the first quarter of 2011 is in line with management expectations.

For more see this week's magazine.