The merchant paid out dividends totalling 52.9m. Managing director Toby Marchant said this was part of a securitisation programme for parent Buhrmann, allowing it to take assets to reduce its cost of borrowing.

"Unfortunately its a consequence of being part of a big group like Buhrmann, and gives a slightly false impression of how well we are performing," he added.

Turnover for the group rose 3% on 2000 to 386m, but its pre-tax profit was just 439,000. But Marchant said that the group was still in "good shape", and had performed better than most competitors.

Robert Horne has also launched a new corporate identity, marking the first change to its distinctive "H" logo in 37 years.

Each of the groups six operating companies will keep their own names, but will carry a new identity, allowing Robert Horne to present itself as "a single, broad-based group", said Marchant.

As well as the change to the logo and typeface, the group will have the strapline, "Know-how in paper, board and plastics", which will be adapted for each operating company.

Robert Horne has been operating since its creation in 1925 by Robert Horne, the son of a Scottish printer.

It employs 1,200 staff. Sales of 400m are projected for 2002.

Story by Andy Scott