The 13,000sph, four-colour B1 Komori Lithrone 440SP will be commissioned at the plant next April, and will double the plant's capacity to around 45m-50m in terms of retail sales.

Printing.com is also planning to build a mezzanine floor at the 2,900m2 plant, which will add 50% production floor space. The plant already runs two B1 Lithrones.

Tony Rafferty, Printing. com chief executive, said that the investment at the Manchester plant means that plans to build a second production hub in the South were still "over the horizon".

But he insisted: "This does not mean that franchisees in the South are second-class citizens, as [the Manchester investment] will improve cost efficiencies for everyone."

The news came as Printing.com posted record figures for its financial year to March, with a 61% year-on-year increase in pre-tax profit to 1.51m.

The high-street franchising group reported 33% year-on-year growth in retail sales to 14.4m, and an increase in its total number of outlets to 112 now from 85 in March 2004. A further 15 franchises are pending.

The results allowed Printing.com to declare its first-ever shareholders' dividend, of 0.5p on earnings per share of 2.7p.

Rafferty said that the significant development during the year had been the growth of the "guerrilla" format of franchises, which allows print workers to set up franchises with minimal investment.

Rafferty added that the firm was now in a position to "explore" international expansion, probably through joint ventures or master franchise arrangements.