In the 26 weeks to 28 January the group reported a slight slip in sales on continuing operations (excluding the magazines wing) of 1.4% to £149m. Underlying pre-tax profit grew by 8.5% to £10.2m.

However, the group posted a £19.1m loss on discontinued operations, including a £14.2m impairment charge on the book value of the plant and machinery being sold to Walstead Investments, which resulted in a £10.3m net loss for the period. The charges also included a £3.5m write-off related to the disposal of its US business, which was described as "prudent".

"We’re very pleased to have delivered further progress," said chief executive Patrick Martell. "There were a lot of sales and marketing costs in the first half, as well as the Service Graphics move to Chessington and our head office relocation.

"A lot of building blocks are in place now that we will benefit from going forward," Martell added.

St Ives has also unveiled a new reporting structure under two divisions: 'print' and 'marketing services'. For the period, the print side, including Clays, SP Group, Service Graphics and the Direct business, reported a profit prior to exceptionals of £12.9m on sales of £146.2m.

Marketing services – effectively just the Occam business at the half-year, but which will include new buy Tactical Solutions for the next period – posted a small loss on sales of £3.2m.

"The marketing services loss is due to corporate costs in the first half," explained finance director Matt Armitage. "The Occam business is profitable and its activities are second-half weighted. By the end of the year 10% of our operating profit will be in marketing services."

Martell was also bullish about the potential Olympics boost for the group, particularly at Service Graphics, and anticipated "a significant increase in activity" as a result of the games.

St Ives shares were down 3.5p to 105p at the time of writing, as European stock markets fell overall due to the crisis in Japan.