Sales fell 3.8% to 682m (Euro1.1bn), and the group said that like-for-like sales (excluding the discontinued digital camera and scanner businesses, and taking into account the early Easter) had stabilised.

Operating profits prior to restructuring charges jumped by 35.5% to 63.9m, and gross profit increased to 43.4% (2001: 39.5%). Agfas business is split into three divisions: technical imaging, graphic systems and consumer imaging with technical imaging the most profitable and consumer imaging the least.

Worldwide sales in graphic systems, which accounts for just over 40% of sales, were effectively static, slipping by 2.5% to 285m, but operating profits improved enormously, increasing by 78% to 22.3m.

The transition from film-based pre-press workflows to computer-to-plate continues apace, with both digital plates and associated equipment showing high growth rates at the expense of analogue products.

UK graphic systems director Laurence Roberts said: The key thing is that although sales are flat, profitability has improved dramatically. Its a harsh thing to say, but it shows the benefits of cutting costs when business is down.

Roberts described the picture in the UK as reasonable. Some people are busy, some are not, but the mood of the people at Ipex was pretty upbeat, he said.

Computer-to-plate and digital proofing are booming areas. We are now busy shipping what we sold at Ipex and making sure people have their funding in place. We sold 87 Sherpa proofers at Ipex, and were very pleased with that and hope to sell 300 this year, compared with 200 in 2001, Roberts added.

CTP plates are growing phenomenally, and our biggest problem is keeping pace with demand.