Speaking as the PLC released its interim results, Martell said that although the group had won some new contracts related to 2012, including wayfinder signage for Transport for London, overall Olympics demand for large-format graphics was lacklustre. "I’m very disappointed at a lack of Olympics activity to date," he said.
"We can’t just sit on spare production capacity," Martell stated. "Our focus will be on making sure we serve customers with whom we have long-standing relationships and who will be using our capacity before and after the Olympics."
He added: "There is a risk that if buyers leave things until the last minute they will struggle to get things printed in time, or they will end up paying a huge premium for it."
In its results for the six months to 27 January, group sales on continuing operations grew by 11.7% to £166.4m, boosted by the slew of recent acquisitions in marketing services. Underlying pre-tax profit rose by 8.7% to £11.1m.
The bottom line profit was £1m (2011: £8.9m) after restructuring and acquisition costs of some £8.5m.
Last week the group added a fifth firm to its marketing stable with the acquisition of £8m turnover Incite Marketing Planning, in a deal worth up to £17.5m if Incite hits profit targets over the coming two years.
Martell said brands and retailers were becoming much more discerning about how they placed their spend, and the returns on it.
"That plays to our strengths and is a good thing for us," he said. "We can demonstrate ROI, for example at Tactical Solutions for every £1 spent, we can demonstrate £1-plus of added-value."
Marketing services now account for 20% of operating profits, and Martell said the group is confident of hitting its 40% target in two years.
Restructuring at its print division, including the closure of Westerham Press and the Blackburn multimedia facility, cost the group more than £5.5m, although Martell said these actions were now complete. The remaining Direct business in Leeds and Bradford is in profit going forward.
An investment in a state-of-the-art enclosing system is under consideration for Leeds.
In the POS market, clients are increasing the frequency of campaigns to drive sales and St Ives is benefiting from cross-selling its marketing services to retailers.
Market conditions for exhibitions and events wing, Service Graphics, were described as "challenging".
Books division Clays continued to perform strongly and retains its market leadership, despite an overall decline in book volumes of 6%-7%.
Clays won new business from Random House during the period, and installation of the Timsons Kodak digital book printing line ordered in September will begin later this month.
"Books are not CDs or DVDs. We are seeing a polarisation of run lengths, and the benefits of being able to produce smaller and smaller quantities. Our print-on-demand offering is hugely successful," Martell said.
The group has also changed its senior management structure.
Managing director of commercial products Lloyd Wigglesworth will oversee the print businesses, while marketing services will report in to finance director Matt Armitage. Brad Gray becomes deputy group finance director.
Martell said St Ives had now acquired companies in all its target areas, but "still continued to look" at other potential acquisition opportunities.
Article updated for PrintWeek magazine, click here for the original story.
