Sales fell 13.7% to 515m (e749m) as a result of the disposals, while pre-tax profits doubled to 42.6m, which included a 13.8m non-operating gain.

Excluding disposals and currency fluctuations sales fell 2.8%, despite volumes increasing, as a result of price erosion.

Graphic Systems' sales increased 3.6%, while return on sales fell from 5.4% to 4%.

But the disposals are only part of the firm's transformation, with more significant developments to come as it moves into industrial ink-jet printing.

Trade in the UK Graphic Systems business was up 3%. UK Graphic Systems director Laurence Roberts said: "Business is quite steady, there was quite a buzz at Northprint and at the end of June we expect to be 3-4% up. An awful lot of business for us is to come in ink-jet not in '05 but in '06, '07 and '08."

Roberts added that the Fespa exhibition, starting at the end of this month, would be interesting as it will show not only where Agfa was headed, but also where other firms' "R&D money is being thrown".

Story by Barney Cox