Magazine sales now account for 52% of turnover, compared to 63% this time last year. But total sales, operating profit and pre-tax profit for the year to 31 March 2002 were all down compared to the previous 12 months.

Sales volumes werent down, said financial director Paul Hollebone, but competition was "much harder". "Prices cant drop any further," he added.

Turnover was down 2.2m to 125.5m and pre-tax profit before amortisation and exceptional costs crashed by 79% to 3.07m. Operating profit before goodwill and exceptionals dropped 63% to 6.4m.

The group has increased its work in the travel sector. Although 11 September immediately "halved" print runs for brochures, customers asked for more printing when their demand recovered.

It is producing more work for supermarkets and has secured a contract with Edexcel that doesnt cover the printing of exam papers.

Last years 16.5m investment in new equipment means the group wont have to spend any more this year, allowing it to reduce its high gearing and improve its low interest cover.

Wyndeham is "considering options" for the future of its packaging division. Three weeks ago it sold the land on which Riverside Packaging is situated and will lease the site back.

Print Direct managing director Gary Lasham has been named as group sales director. Wyndeham bought Print Direct two years ago and Lasham was set to leave after his two-year service contract. But chief executive Bryan Bedson said he had "jumped at the opportunity" of the new role.

Lasham replaces Mike Verga, who will remain within Wyndeham as sales director of Grange Press. Alan Hodgson, founder and former production director of Print Direct, will take over from Lasham.

Story by Gordon Carson