Sales were down compared with the same period last year but Europe fared better than other localities, down 3.4%, with Asia and America recording declines of 51.7% and 18% respectively.

Despite sales in its digital printing solutions dropping by 8.7%, Matthews said the company is in a "good position" and is anticipating an increase in sales on Xeikon equipment in the second half of 2009.

"The UK, in comparison, is performing well and we expect this to improve in the later part of the year," he said.

"Going forward there are some great opportunities to place some more 3000 label presses. The digital label market is coming of age and we're seeing some flexo users starting to invest."

He also added that the Xeikon range could prove attractive in "dark economic times", thanks to its lower price than other digital presses on the market.

Elsewhere, Punch Graphix pre-press products, which are released under the basysPrint brand, also recorded a drop in sales by 6.7%.

The company said with the global credit crisis impacting equipment sales there was insufficient ability to forecast "concrete" targets foing forward.

However, the group said it expected sales and the profit to fall substantially in 2009 and has introduced a raft of cost-saving measures that are expected to help cut costs to the tune of €10m per annum.

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Punch Graphix teams with Hine Labels for digital labels open house