The large-format kit distributor recorded pre-tax profits of £470,000 in its financial results for the year ending June 2008.

Biggs said early problems with the ColorSpan product, prior to acquisition by HP, "left a hole in the budget", with revenues several million pounds down on company predictions.

However, he added that profitability levels were "more or less" spot on with Colourgen anticipating strong future sales of the Epson Stylus Pro GS6000 and Seiko range of products.

"In a year when many companies have struggled, Colourgen has demonstrated its solid foundation and resilience by posting a strong result," Biggs said.

He added: "With a range of excellent products from leading industry vendors coming into our portfolio in the current year, we are justifiably positive, despite the continuing environment of economic instability."