The firm has purchased a new Herzog + Heymann KL112 miniature folding machine from Friedheim International.

It has also brought in two new staff to run the machine, including Andy Down who ran a miniature folding division at another Bristol firm.

Folio managing director Andy Bird said: “Andy [Down] is the key to moving into miniature folding. He has been active locally for years and is an expert in miniature folding. Because of this, it was an area of business we wouldn’t touch.

“However, circumstances change and I was delighted to invite Andy to join Folio and create greater opportunities for us in this area.”

The company, which currently employs 55 staff, has bought one machine at this stage and is in the process of ramping it up to running a double shift.

A second machine is likely to be purchased in early 2008.

Bird said: “In finishing it is important to recognise niches. It is the only way to survive and this is another string to our bow. We have our core business and then several niche areas. It helps to invest in areas printers won’t bring in-house and miniature folding is one of those areas.

“We turn over around £2m a year at the moment, but at this point in time the miniature folding will probably only represent about £150,000 of that.”

Folio also plans to invest in other niche areas with announcements expected in the next couple of months.

Bird added that the company will continue to grow over the next 18 months to an estimated turnover of £4m.