City sources say that the print and print management group, which recently posted half-year sales of 134.9m, could have difficulty persuading private equity (PE) investors to acquire the firm.

Communisis announced in a statement last week that it was "at a very early stage" in talks over a possible sale of all or part of the firm. It made clear, however, that "it is far from certain" whether the approaches would lead to any sort of deal.

The Leeds-based group also revealed that it had held "exploratory discussions" with a "small number" of private equity houses, but that the talks had come to an end. The firm declined to make any further comment.

Sources in the investment community said the firm could be looking for a sale "because it is not loved any more by the stock market".

One observer said Communisis' print management arm, which posted a 2005 interim turnover of 70.8m, was the "jewel in the business", but that other areas such as cheque printing would be less attractive to potential buyers.

Another source added: "PE investors probably aren't that revved up about it because the numbers are flat and there's a perception that it's an unproven management team without a clear strategy."

Communisis posted half-year 2005 sales of 134.9m, up from 131.6m in 2004. Operating profit after restructuring charges dropped to 2m from 2.4m in 2004, while pre-tax profits slipped to 0.4m from 1.4m.