The company, which will now operate under the Mailcom Plc brand name, received the investment from existing shareholder loan capital and mezzanine bank funding. The deal was co-ordinated by accountancy firm Tenon.

Mailcom is subsequently anticipating strong turnover growth this year, fuelled in part by recent trading results. The business recorded a 6% rise in turnover to £7.2m with pre-tax profits up 51% to £650,000.

Neil Shotton, chief executive of Mailcom, said: "The new capital injection will be used to increase our file based enclosing capacity and bolster disaster recovery services."

This will include boosting the firm's capacity to handle more than 2m statements each day at its Tyne and Wear facility before the year is out.

Shotton added: "The onus is now on the outsourcer to drive economies of scale."