Bousfield will increase its prices on some smaller, less profitable contracts from 1 June after looking at other ways of increasing profitability.


The firm said it had looked at various parts of the business and had been working with raw material suppliers over the past 18 months to try and increase profits.


But due to the "market climate" it had to look at other avenues.
"We have been struggling for some time [with profitability] but it gets to a point in time when the equation doesnt work," said managing director Andrew Christie.


"If organisations are going to be around, they need to be profitable."


The move follows a warning from Roger Fletcher, chairman of parent group Amberley, that it could dispose of any of its four operating units if performance didnt improve (PrintWeek, 5 January).


Amberley made a pre-tax profit of just 700,000 on sales of 34.3m for the six months to 30 September 2000. It was hit by a 1.2m bad debt at Bousfield.


In March, Bousfield launched its mail order catalogue, which is performing "extremely well". Bousfield claimed it was gaining "hundreds of new customers on a weekly basis". It is also investing a six-figure sum in improving its website. By September customers will be able to track orders online.


Story by Jeremy Allen