The commercial and book printing group reported pre-tax profits before exceptional items of 2.2m - down 26% on 2002's 3m - in the year ending 31 December 2003. Group turnover was down 4% at 39.9m.

Chief executive Mike Taylor said the results reflected "the prevailing weak market conditions for commercial print, together with the absence of the normal seasonal upturn in book covers and jackets in the fourth quarter."

Sales dipped in commercial and financial printing, which accounts for 69% of group turnover, by 7.6% at 27.7m. While book cover, jacket and paperback printing increased its sales by 5.5% to 12.2m.

The 900,000 exceptional gain in the accounts relates to the sale of the vacant freehold offices in Tamworth previously occupied by the group's former Box Room subsidiary. At the end of 2003 Fulmar also sold the vacant freehold factory in Lewes, formerly home of WE Baxter, which has been relocated to the group's Croydon HQ.

Fulmar stands to gain further from the former Baxter site. An additional minimum payment of 800,000 may become due subsequent to the purchaser obtaining suitable planning consent. On completion of the sale of the developed property Fulmar is entitled to a further payment of 35% of any proceeds above 10.2m, with a total consideration capped at 4m.

Fulmar chairman David O'Shaughnessy plans to retire in September, when he reaches 70 years of age.