Sales for the six-month period fell 1.7% to 14.8m due to a reduction in consumer magazine work through lost titles and reduced pagination.

The West Midlands group also said it did not expect good year-end results as it would incur "significant reorganisation costs".

Cradley lost Mojo in December last year to Jarrold Printing, retaining one Emap consumer title, Internet, and picked up four new titles from GMC Publishing (PrintWeek, 7 December 2001). But it has made "great efforts" to increase its commercial sales, with "a degree of success".

The group made an operating loss of 659,000 against a profit of 25,000 for the same period last year, while pre-tax losses hit 855,000 against a loss of 176,000 last year.

Substantial pressure has been applied to profits, which has been driven by the overall price reduction hampering the printing industry, it said.

Joint managing directors Chris, Nick and Jeremy Jordan said Cradley would continue to work on reducing its costs.

Cradley made 90 job cuts earlier this year and agreed new working conditions with staff, following an agreement with the GPMU (PrintWeek, 15 February).

The group is also still awaiting news concerning the print contracts for Time and Newsweek, which are under renewal by International Magazine Services (PrintWeek, 22 February).

Story by Andy Scott