The statement to the London Stock Exchange followed publication of the company's Interim Management Statement (IMS) in May, in which it said that demand for the technology side of its business remained strong despite reduced volumes in its less value-added segments.

Communisis said that since then it had noted a trend amongst its larger customers to delay decisions on buying some of its "higher margin services", such as data analysis projects, business change initiatives, cheque rebranding and highly personalised marketing campaigns.

The company said that this had led to a deterioration in the group's margins, on top of the impact that was already being felt due to reduced volumes, as a result of which it said it now expects to report full-year operating profit  below its previous estimates.

Steve Vaughan, Communisis chief executive, said: "There is no question that our customers are keen to move towards a model which allows them to achieve a more profitable and effective marketing approach, but the downturn has meant that decisions around buying these services are being delayed.

"Although volumes have been more encouraging in recent weeks, the impact that customer delays are having on our revenues and margins has led us to take a more cautious view of the outcome for the year as a whole."

Communisis said it expected the poor trading conditions to remain a feature of the second half of the financial year, although it added that "a stronger weighting of profits towards the second half of the year" was achievable.

The board said it would maintain the interim dividend at the same level as last year.

Communisis' share price dropped 20% on the announcement.