Following the results the firm's share price fell to a new 52-week low of 1.5p before recovering to 2.5p at closing - a 28.6% drop. The results, which "don't match aspirations" outlined in February, came after what chairman Warren Tayler referred to as a "dire" period for the industry.

In a statement to shareholders Tayler said: "Not only was your company hit by these difficult trading conditions, but it also came when the company was undergoing significant restructuring following the purchase of the London Colourflow business."

Documedia bought two of Colourflow's London operations from receivers in March, a transaction that, according to Tayler, had added to a group operating loss from ongoing operations of 497,050, before exceptional items, including reorganisation, of 285,592.
In September Documedia sold its software business, ControlP, to TripleArc (PrintWeek, 4 October), but in the six months to 31 August the division lost 286,206.

However, now the restructuring was complete, loss-making ControlP had been sold off
and the group had bought Fingerprint Group in Slough (PrintWeek, 1 November), Tayler believed Documedia was ?as well set as any, not only to survive, but also gain from the difficulties of others?.

Group managing director Mark O'Connor told PrintWeek, that the company was in a good position for 2003 and that a "careful and selective" approach would be taken towards new business opportunities, including acquisitions.

The group also has no borrowings and still has 354,500 cash at bank, although this is down from 1.6m in February.

Story by Rachel Barnes