Cradley Groups interim results show a 9% rise in sales to 15.24m, but a net loss of 176,000 before tax.


The figures, for the six months to 31 December 2000, reveal a 94% collapse in operating profits to 25,000. Cradley blamed the profits crash on price-cutting and the fact that the additional commercial work it has taken on has been low margin.


The firms share price fell to a new 52-week low of 20p on the news.


The report stated that new shift patterns, introduced in March, will help to reduce total payroll costs substantially in the future.


However, Cradleys attempts to control costs elsewhere in the business have been hampered because its SAP management information system, originally due to be operational in February 2000, has continued to not perform.


Website wing Psyche Solutions suffered as a result of the dotcom crash impacting the growth of the internet design market, but the report states that the company is continuing to minimise costs.
Better news came from Cradley Creative Finishing, described as progressing well after a move to new premises last summer.


Cradley stated that current trading volume was good, and the plant has settled down following the disruption caused by the installation of a new Komori web, also last summer.


However, the benefits are not likely to be seen until the 2001-2002 financial year, and Cradley has admitted that its year-end results are not expected to be good.


The boardroom row with finance director Geoff Gibbons has been resolved, and he has left the company with immediate effect. Gibbons was asked to leave the board after what was described as a mutual disagreement over the companys future development.


He will be replaced by Maureen Hawkins, currently a finance chief at SGB Manufacturing. She is expected to join the print group in the summer.