According to the Gosport-based company, the machine, which was installed four weeks ago, will increase capacity in its digital side by around 200%.

Operations director Allan Gray said: "We needed to increase capacity – we wanted to become a bigger player in that area – we weren't able to pursue it as vigorously as we wanted to."

According to Gray, digital now accounts for about 10% of the £11m-turnover book printer's business.

The 124-staff company is hoping that the new continuous feed machine from Xerox, which was bought along with a Hunkeler feeding and finishing system from kit supplier Friedheim, will offer higher profit margins and a reduction in warehouse and other operational costs due to improvements in production processes and increased capacity.

ACP has added a raft of equipment in the last year and a half, including two new platesetters from Agfa, a large format KBA machine and a new MBO folder.

However, Gray does not see the company spending much more money in 2009. He said: "We may bring in a large-format guillotine and our wiro-binding may need replacing, but I think we have spent enough in the last 18 months. I would hope that what we have now can take us to a £12.5m turnover quite comfortably."