The installation follows a period of diversification at the Mitcham, Surrey-based business, which has resulted in it moving into digital print and direct mail in recent years.

Its latest investment has helped the 28-staff printer win new business, including two contracts that will add up to £2.5m in turnover over the next few years.

Managing director Danny Sullivan said: "In the past, we have had agencies turn down our tenders simply because we didn’t have an HP press at our production site.

"Now, of course, these companies know that we can produce the high-quality prints they are looking for on short-run commercial print jobs."

Work stemming from recent contract wins, which includes a two-year contract for a company in the health and leisure sector, is already expected to add up to £100,000 in revenue for the first quarter of the year.

Sullivan added: "Now that we can offer consistently high-quality digital prints, we actively encourage our clients to go for quality not quantity.

"We find that personalised correspondence receives a much higher response and therefore the campaign will be much more successful."

HP's Indigo 5500 press can print at resolutions up to 800x1,200dpi and at speeds of 68ppm in full-colour mode and 136ppm in two-colour operation.

The company, which was established in 1989, operates Heidelberg presses, as well as Xerox, Oki and HP digital equipment and also offers in-house finishing and design facilities.