In the six months to 3 July 2010, the company made a pre-tax profit of £2.5m, up from a £629,000 loss in the same period last year.

Chairman Richard Jewson said: "The return to profit reflects the reduction in, and continued downward pressure on, operating costs."

The company's operating costs fell to £63.1m after the company spent most of last year cutting its overheads in line with the reduction of business.

Archant's turnover dropped slightly to £70.1m from £70.8m in the same period in 2009.

Newspapers and printing made up the bulk of the group's turnover (£48.3m) in 2010, compared to £49.1m for the same period in 2009, a drop that Archant claimed was due to decreased advertising revenues, which fell by 4.1%.

Jewson added: "We continue to place much emphasis on new business development. A number of significant initiatives are in process, aimed at further exploiting print, digital and mobile opportunities.

"We continue to pursue process efficiencies while seeking new revenue opportunities in print and online by developing new products and services to meet the changing nees of our customers."