Sales at the print group were up 4% on the equivalent period in the previous financial year and St Ives said it was benefiting from repositioning its business to reduce exposure to commoditised print markets.

In the group's books business, an increase in market share is expected to offset the impact of some volume migrating to eBook formats. However, St Ives warned that the uncertainty surrounding the future of Waterstones would have a one-off negative impact on second-half sales.

In its events and exhibitions business, St Ives is targeting margin growth following the disruption caused by the move to its new Chessington plant. "We expect to continue to make progress in this business next year and, in particular, to benefit from extra activity generated by the London Olympics," said the company.

St Ives is also targeting continued improvement in the Point of Sale market, although it warned that the market for direct response and commercial print remained "challenging" and that it would continue to keep its cost base under "close scrutiny".

In its marketing services division, St Ives highlighted the successful integration of the recently acquired field marketing business Tactical Solutions, as well as investment in resource and IT infrastructure at database marketing subsidiary Occam - made with a view to expanding sales next year.

St Ives said it would continue to seek opportunities to develop its marketing services business, both through organic growth and further acquisition.

A £1.5m exceptional income was achieved following the completion of the sale of property at the former St Ives Edenbridge site, which was closed last year.

St Ives, which has made significant strides in reducing its net debt from £19m in 2009 to just £2.7m in 2010, said it expected to be cash positive by the end of its current financial year.