Graphic Systems sales fell 11.7% to 571m (Euro822m), but the fall was actually 3.8% once currency fluctuations were taken into account. Operating profit rose 9.5% to 42.4m.

Agfa cited the continuing weakness of graphic arts markets and the firm has been hard hit by the decline in the German market.

In the UK, where Agfa has nearly 50% of the film and plate market, turnover was almost exactly the same as last year according to director Laurence Roberts. We are seeing a 30% per annum decline in analogue film and plate sales, but digital products are growing at about the same rate, so there is a balance. In fact we are slightly ahead as weve grown our market share in thermal plates as we now have more product to sell.

Roberts was also sceptical about the impact of processless plates. It fills column inches but a viable product capable of being mass produced is a totally different matter. Its a long way from substituting the current technology.

In pre-press hardware B1 sales had tailed off as anyone whos anyone has got CTP now, and while there was growth in the B2 CTP sector this area required suppliers to be prudent with credit.

Sales of the Sherpa ink-jet range continue to show strong growth. The Sherpa is up 25% year-on-year and Im quite pleased with that. Ink-jet is the only area where the market is exploding and our market share is continually growing, he added.

The firm was buoyed by the newspaper sales it gained at Newstec in May, but with no major exhibitions as a focal point for commercial sales this year, Roberts said the company was ploughing on. Its hard out there.

Agfas Horizon restructuring programme is reaching its conclusion, and the group is now implementing its Orion plan which aims to stimulate sales growth, improved quality and reduce working capital. This programme runs until 2005.

Total group sales in the first half fell 2.8% (excluding currency variations) to 1.5bn. The groups consumer imaging division was the black spot, posting a 17.3m loss.