The printing hardware and consumables supplier said: "As a result of the economic downturn and reduced level of activity, we estimate that turnover for the second half of the year will be slightly lower than for the first half.
"In addition, the business has experienced higher levels of bad debts than anticipated. We therefore expect that the company will make a loss before restructuring costs for the full year."
The group, which recorded a pre-tax profit of £36,000 on sales of £25.4m in its first-half results, highlighted the fact that it will benefit from a reduced cost base next year, following this year's restructuring programme.
"We have previously reported that the impact of our reorganisation will involve the business incurring significant additional costs this financial year, but will enable us to start 2009 with a cost base reduced by more than £1m compared with 2008," it said.
The business, which bought post-press supplier GAE earlier this year, has already shifted central administration and accounting operations from Bristol to its head office in Breaston, Derbyshire, following the appointment of Simon Wellings as finance director. In addition, its ink mixing service has been concentrated centrally in Dewsbury, Yorkshire.
Chief executive Michael Hammond said: "The first half of 2008 has been a challenging environment with the uncertainty in the financial markets affecting the confidence in many industry sectors, with the resulting impact on the print market.
"In order to most effectively serve the printing and corporate market, we are continuing with the reorganisation of the group and addressing the cost base, including the centralisation of our administration to our head office in Breaston."
Litho Supplies issues warnings over bad debts in interim results
Litho Supplies has issued a profits warning in its interim management statement, blaming an anticipated downturn in second-half revenues and higher levels of bad debt.