Emley will work an average of two to three days per week from now on, said group managing director Brian Edwards, who would not be drawn on whether Emley was winding down to retirement. "It is what it is at the moment," he said. "He's still got a very big job."

Emley joined St Ives in 1992 having been hand-picked by founder and chairman Lord Gavron to take over his role. He had previously been a director at NM Rothschild and oversaw the flotation of St Ives in 1985.

A well-respected figure in the City, Emley's strategy of focusing on high value-added sectors as opposed to the high-volume market has divided opinion among industry-watchers in the Square Mile.

Some would have liked to have seen him using St Ives' strong financial position to take on rivals like Polestar, while others claim his strategy is a sensible one.

"What he's avoided doing is growing any more in the commodity market, which is what Prinovis and Polestar are doing," said one City source. "It's all very well them investing the money [in gravure superplants] but when are we going to see the return?"

The group will now be managed as three operating segments: media products, commercial products, and the US. The UK was split along the lines of "goods for resale and goods not for resale, where the customers have different drivers," said Edwards.

Edwards will retain overall responsibility for the group but will have a particular focus on commercial products. Patrick Martell, formerly managing director of the book division, who joined the main board in 2003, will step up to become managing director of media products, while Wayne Angstrom remains responsible for the US.

The group will report its segmental sales and operating profit according to the new structure for the year ending 28 July 2006 and thereafter. Its results to July 2005 will be announced on 11 October.

St Ives' New Structure
Segment Commercial
Components Direct response, PoS, commercial and financial
MD Brian Edwards

Segment Media
Components Books, magazines, multimedia
MD Patrick Martell

Segment USA
Components Commercial, PoS, magazines
MD Wayne Angstrom