One of the contracts is with advertising giant WPP and the other is a 1m-plus deal with a leading retailer.

Service Graphics also expects to report a profit of 500,000 in its first year of trading since its management buyout from Photobition (PrintWeek, 9 November 2001), when its figures are published later this month.

"Our objective was to stabilise the business after the MBO, and we have done that and remained profitable," said Service Graphics director Ben Moss.

Moss said the company would spend 1.5m on new equipment across all of its outlets.

It will introduce additional small- to large-volume equipment in its central London office, having seen an increase in the volume of work from agencies.

"Last year was a very tough market, but at last we are starting to see some contract work that was shelved coming through," said Moss.

Moss said he was pleased with the way the business was now operating, having achieved the consolidation of its operations quicker than expected.

"The quicker this was achieved the quicker we could take the business forward," he said.

Service Graphics new kit will include a Durst Lambda wide-format digital colour printer, 15-20 solvent ink-jet printers, and at least three flatbed scanners.

The company will also spend 400,000 on unifying its three internal software systems into one.

Story by Andy Scott