Sales on continuing operations dropped 5m year on year to 264.8m, while profit before exceptional items was more or less static at 15.1m (2004: 15.3m).

However, a restructuring charge of 7.9m, relating in part to the loss on the sale of Datadocs, meant the group turned in a post-exceptional pre-tax profit from continuing operations of 4.1m (2004: 6.2m).

Jones said that despite the tough trading conditions manufacturing in particular had suffered from "pretty severe price decline" and falling volumes in financial mailers the group was now well positioned for growth.

Talks last year with potential suitors for all or part of the business were behind it and the recent sale of rivals Astron (to RR Donnelley) and Williams Lea (which sold a controlling stake to Deutsche Post) "worked well in our favour", he said.

Communisis' contracts with large financial institutions encompassed logistics and mailing as well as print, and the group would expand in these areas if the opportunities arose, he said. "For us, the way the market has moved is exactly where we were going anyway," said Jones.

The group signed a 250m 10-year deal with HSBC last year and took over the bank's statement printing operation as part of the contract. It is in the process of building a new facility in Liverpool, due to open next year, which will have the capacity to handle work for two other banks, as well as HSBC. "[This facility] will be the best of its kind in Europe," said Jones.

Communisis has also announced its intention to begin an initial 5m share buy-back programme, enabling it to buy back up to 15% of the company's shares.

The City responded positively to the announcement - shares were up almost 11% at 82.25p.