In a trading statement the Croydon print group said that results for 2003 would be below market expectations.

Pre-tax profit prior to exceptionals is likely to be 800,000 down on 2002 at 2.2m. However, the group intends to maintain its final dividend.

The shares fell by 7.5p to 71p on the news, but bounced back to 73.6p in Monday morning trading.

Our dividend policy underpins the share price so there was no real reason for it to drop. The market-makers reaction, as usual with smaller companies, was excessive, said chief executive Mike Taylor.

Taylor described last quarter trading as pretty horrible. The commercial side got worse. Normally October and November are good, but not this year and theres no sign of any upturn, he said.

And although there was continued growth in paperback book printing, the usual late season rush in book jacket and covers business did not materialise.

Taylor also anticipated further casualties in the commercial print sector. Prices continue to be too low for everyones peace of mind. I would guess the vast majority are losing money.

Fulmar has also sold the former WE Baxter premises in Lewes and the proceeds of this sale, some 2.4m initially, will be used to reduce borrowings.

Fulmar's sales in 2002 were 41.6m, and the group is number 38 in PrintWeek's Top 500.

Story by Jo Francis