The £440,000 buy, which followed a £1m spend on new kit in 2007, will help the firm cater for March's annual billing exercise in which the company handles work for local government authorities.

The new system, with eight insert hoppers, joins a fleet of five Pitney Bowes enclosing systems, providing additional enclosing capacity for DL, C5 and C4 envelope sizes.

Over the last 12 months, the 240-strong document management firm has secured contracts to handle work for 12 councils across the UK.

The wins are expected to be worth in the region of £1.6m profit per annum, with each contract lasting between three and five years.

CFH managing director Dave Broadway told printweek.com that the recent wins have "increased the amount of documents by an additional half a million units" since 2007's billing exercise.

CFH currently processes more than 72m envelopes per annum for clients involved in critical and transactional mail as well as those in the local government sector.

The firm's spend on kit in 2007 included a Pitney Bowes Olympus II Multi-tier Mailsorter, two Duplo system 5000 bookletmakers, and a Xerox iGen3 digital press.