The Derby-based company specialises in variable data printing, producing cost effective labels and tags with 100% barcode verification for the medical, pharmaceutical, logistics and courier sectors.

General manager Peter Hartshorn said: "Producing so many high quality variable data labels is a sure sign we are getting it right. This proves we are supplying our customers with a service and value they expect and our small team at Derby is very proud."

Mercian Label Group acquired the assets and goodwill of AC Labels last April after it went into administration the previous month and reformed the company.

Adrian Steele, managing director of Cannock-based Mercian Labels said: "AC Labels has grown since we acquired it and we are anticipating 20% growth against budget this year. Its USP is that it offers 100% barcode verification, which means that whenever you print a variable barcode you can check it against the ANSI standard which gives an exceptionally high level of quality control. We are taking a good level of market share away from our competitors."

Steele added that the group was focusing its efforts on product innovation. "Like most companies we are experiencing demand for shorter and shorter runs and seeing demand for a faster turnaround. Our average turnaround speed is three days for our short-run model."