The loss for the financial year, which saw the sudden departure of former chief executive Peter Hammond in March 2009, compares to a profit before tax of £204,000 in 2008.
Turnover for the 12 month period also dipped, from £25.7m in 2008 to £22.7m, a 12% drop.
According to the director's report, the business experienced "the negative effect of the UK recession", which led to the loss as customers "reduced, deferred or cancelled" their spend on print.
In response to the drop in turnover, a "significant" reduction programme was introduced, which the directors believe will save the company £800,000 a year. One of the changes was to drop a number of clients that had "become unprofitable".
The statement said: "There was no impact on these reductions in the year to 30 September 2009, however the group has provided for the redundancy costs in the current year.
"The directors believe the outlook in 2010 for the business has much improved. The impact of the cost reductions and significant new business wins in the colour critical sector will deliver significant improvements in the coming year."
PPG had a tumultuous year in 2009 with two changes of chief executive. Long-term chief Hammond was forced out in March 2009, with Roger Lindop appointed to replace him. However, Lindop left the company in late 2009 and was replaced by Chris Bowen in January of this year .
PPG in numbers
Turnover
2008: £25.7m
2009: £22.7m
Pre-tax profit
2008: £204.2k
2009: £1.18m LOSS
Net Debt
Sept 2009: £5.7m
Oct 2008: £6.1m
Net Current Liabilities
2008: £1.73m
2009: £2.8m
Staff
2008: 243
2009: 250
