However, despite the negative economic outlook in the latter half of last year, the company recorded 2007 sales of £43.25m, an increase of £370,000 on figures for 2006. It also reported a strong balance sheet with a total equity balance of £9.51m at 31 December, compared with £8.36m in 2006.

Sales director, Eddie Williams, said that the company was "bullish" in its outlook for 2008, while acknowledging tough market conditions.

Litho made a number of acquisitions in 2007, including buying supplier Graphica Plus (which traded as Andersons) in October for an initial cash payment of £600,000. The group is confident that the deal will bolster its performance over the coming year, especially once its warehouse and distribution operations have been integrated into Litho's existing operations.

"We're disappointed that we didn't make [the Graphica Plus] acquisition in early 2007 so that it would have affected the 2007 numbers," said Williams. But he added: "We have quite a bullish outlook, with sales reaching £53m, an increase of 22%."

This January, Litho also acquired the whole of the issued share capital of Graphic Arts Equipment and the remaining 49% stake in Shinohara's shareholding.

Williams refused to be drawn on whether the company is planning further acquisitions and additions to its range.

"If something comes along and it fits with our strategy, we would not turn it down," he said, adding that he expected a period of consolidation and calm for the business.

A spokesperson described the company's adding another press manufacturer to its existing Shinohara range as "a strong possibility".

Summing up, Williams added: "Year on year the numbers are down, but we still have a business that is profitable and have strategically made some good decisions, not tactical short-term ones."