The increase in turnover was attributed to strong revenue in Belgium as well as new online initiatives and the full-year contribution of Netherlands-based print firm MFG, which Printing.com acquired in November 2010.

Earnings before interest, tax, depreciation and amortisation (EDITDA) rose 19.9% to £3.4m (2011: £2.9m) but a 3.8% decrease in pre-tax profits reflected increased depreciation and amortisation arising from software development, the acquisition of MFG and buying back certain rights from Territory Franchisees.

The company, which supplies flyers, business cards, leaflets and brochures to SMEs, finished the year with cash of £1.9m (2011: £2m) and net funds of £1.8m (2011: £1.6m) the highest level since 2009. Capital investment over the year totalled £1.38m (2011: £1.6m), largely reflecting ongoing software investment.

Revenues from the UK network of 267 franchises and company-owned stores (down from 288 in 2011) declined by 3% to £13m (2011: £13.4m) taking into account both the sale of products and license fees.

Meanwhile in the Eurozone, revenue from the Netherlands accounted for £6.46m, an underlying growth in sales of 13% was masked by the strengthening of Sterling against the Euro. Belgium achieved sales of £0.80m and the French network also showed growth with revenue rising to £0.54m, representing an increase of 17.8%. Revenue in Ireland grew by £14.3% to £0.39m.

The BrandDemand channel, launched 18 months ago to target larger businesses, brought in £0.28m of revenue and the firm said it anticipated this figure to show significant progression over the next year.

Printing.com’s micro-business formula FlyerZone, which officially went to market in January 2012, brought in revenue of £0.09m and is continuing to show month-on-month growth. The firm said that TemplateCloud, an online library editable graphic platform intended to be used in conjunction with FlyerZone, had shown scope to be leveraged in to the group’s other various channels.

Chief executive Tony Rafferty said the resilience of the new channels was attributed to the group’s template technology, which would be extended to a variety of other group channels and would add to revenues and operating margin.

But he said the firm needed to do more to secure Flyerzone’s place in the market: "We put in place the Flyerzone formula for the microbusinesses, but we believe we are losing out to certain companies and we need to go back and re-engage with that business segment. 

Rafferty said the business was robust, despite ongoing "economic malaise" and tough UK trading conditions, and the immediate focus would be on driving growth and market share. He added: "We need to be a bigger business and get our technology across a broader geographic playing field. We think we are taking the first steps towards this. We have put the foundations in place and I think those initiatives will gain momentum moving forward."

The statement coincides with the announcement that current chairman George Hardie will step down on 20 July. He will be succeeded by Les Wheatley, who has been a non-executive board member since 2001.