A decline in the business forms market, combined with a slowdown in the retail sector, had led to a slower than expected start in 2005 for its print management division. The group said it was unlikely to to offset this underperformance in the second half of the year.

"Since then trading in the division's retail and business forms units has not improved and further reductions in demand have continued to impact negatively on performance," said non-executive chairman Chris Pople, in a statement issued ahead of the group's AGM on Tuesday (28 June).

In addition, the group lost out on a large contract
with a professional services organisation. However, it has reached preferred bidder status for a "significant" contract with a financial services firm.

Chief executive Jason Cromack also announced the appointment of a chief financial officer. Richard Hodgson joins from Iron Mountain Europe next week.

Story by Lauretta Roberts