Key purchases for the Leeds-based direct mail firm include a fourth web finishing line, its second 16pp Scheffer offline system, making it one of the first UK companies to offer capacity via its four Scheffer units.

Investment has also been made in additional Kodak Versamark printheads allowing three-colour ink-jet personalisation on its web work and an undisclosed spend on a selection of Scitex sheetfed personalisation equipment.

The raft of personalisation and finishing investments comes on the back of new account wins and business developments in the past 12-15 months.

Chief executive John Hornby said the equipment spend will increase capacity across the firm by 20%, and gear the firm up for the growing one-piece mailer market.

"We are seeing an increasing trend towards one-piece mailers, which tend to have more of a doormat presence," said Hornby.

Since the beginning of 2004 Lettershop has added 25 new accounts to its existing client roster. Hornby has not ruled out further spends in line with growth and said that the firm has always had an ongoing plan for investment.

The Lettershop Group employs 300 staff with a turnover of around 30m.

Story by Andy Scott