Managing director Paul Beaumont told PrintWeek that, contrary to local newspaper reports, 70% of the 70-staff business was not under threat.

In fact, it is expected that 15-17 employees will move, under TUPE regulations, to GI Solutions, while a small number of redundancies are also expected to be made at the £5m business.

Beaumont said that the company had already replaced much of the Sky work, which will move on 18 April – with three new contracts having started in the first week of January.

He said: "We had a good relationship with Sky and of course we would have liked to have kept the work for a little bit longer.

"We have begun to replace the revenue and we expect the next financial year to be flat on revenue as we finish replacing the Sky contract, but we will also be profitable this year.

"Our business is changing, we have a lot more complex print capabilities, and we are doing more with high-tech work, more data-based. We are bringing in a lot more added value work."