It made a pre-tax loss of 237m (e384m) on sales down 6.6% to 3bn, compared to pre-tax profits of 167m in 2000.

Total one-off charges were 324m, of which 272m were from the Horizon project. As far as possible the company took the charges for the Horizon plan in 2001.

Graphic Systems sales fell 8.5% to 1.2bn, hit by the economic slowdown. Sales of CTP systems and plates grew 40-50% and Agfa claimed it also grew its market share in CTP. Imagesetter and film sales declined, by "a double-digit rate" although it maintained market share.

The company expects the combination of improved trading in the second half and cost savings from the Horizon plan to return it to profit in 2002.

In the UK Graphic Systems grew 2% in 2001, although the final quarter was described as subdued a trend that has continued in the first two months of this year. Analogue business declined 15%, while CTP grew by 60%.

"Compared to the rest of the world business was encouraging," said Graphics Systems UK director Laurence Roberts.

Sales of electronics rose 15%, which included 43 Galileos higher than either France or Germany.

"Its the best indicator of long-term confidence," said Roberts. "Were confident and looking forward to Ipex, people making money are investing."

Story by Barney Cox