Chief executive Barry Hibbert (pictured) declined to provide further details of the Emap wins, but added: "There it is in black and white, that's what we know as fact."

Operating profit from continued operations for the year ended 30 September 2005 rose 36.2% to 20.3m on turnover from continuing operations down 1.4% to 381.2m.

Hibbert said that was against a background of a market "that is just not healthy".

 "Our figures are improving, but that's nothing to do with the market," said Hibbert. "If the reduction in pagination and the lack of volumes continue we have to consider taking out further capacity."

He added that the gravure side of the business was healthy, offset was where the problem was and that direct mail was flat.

Losses before interest narrowed slightly to 43.5m (2004: 47m). That included reorganisation costs of 47m (55m) and the write-off of a 19m investment in its Spanish joint venture.

The firm has been given a 100m facility by parent Investcorp to fund further investment and restructuring.

The investment will include further presses for Sheffield, which will be running eight to 10 gravure lines within three years. The site's fifth machine, a covers press transferred from Purnell, will be running within three weeks.

Group finance director Peter Johnston said that part of the improvement in '05 is due to Sheffield, but the full benefit wouldn't be seen until 2006's figures.