"There is always a seasonal upturn at this time of year. Anybody who thinks they see green shoots is a bit optimistic lets wait and see," Taylor said.

Exceptional costs of almost 3m due to last years sale of loss-making subsidiary The Box Room wiped out the groups 2.8m pre-tax profit in the year to 31 December, leading to a pre-tax loss of 97,000 on sales down 6.4% at 37.9m.

Underlying profitability remains strong, with operating margins at 11% (2000: 11.5%), thanks to "good control of overheads".

Commercial printing accounts for 65% of group sales, and the division will be boosted by last months acquisition of 7m-turnover Quadracolor. Sales at City printer Royle Financial Print were "substantially" down, after it was hit by the fall-off in corporate activity.

Fulmar is also relocating loss-making ring binder specialist WE Baxter to a site close to the groups south London base, where it will benefit from group pre-press and finishing facilities.

Fulmars book printing businesses were the bright spot, and "remain unaffected by the economic downturn". Paperback facility Bookmarque has completed its first full year of trading, and together with book jacket and cover arm White Quill, now accounts for 22% of group sales.

Sales at White Quill jumped 19%, and its finishing operations will move to 24-hour working next month to meet demand.

Fulmar also spent 1m buying back 1.9m of its own shares, increasing earnings per share in the process. Since 18 March the groups share price has risen by 12.4%, to 72.5p.

Story by Jo Francis