Underlying pre-tax profit rose £2.2m year-on-year to £8.4m for the six months to 29 January 2010, which resulted in pre-tax profit from continuing operations soaring 89% to £8.3m from £4.4m.

However, the increase in half-year profits at the UK's largest print group was tempered by a sales drop of £21m, from £208m during the same period last year to £187m.

St Ives chief executive Patrick Martell credited the profit boost to an "improved work mix" and the impact of a series of cost-cutting measures undertaken by the group last year, which included the closure of its Andover and Crayford site, resulting in substantial job cuts.

However, Martell warned that the results were not an indication of a general upturn in the market: "We are not anticipating any immediate improvement in our underlying markets; we will continue our focus on cross-selling. 

"This will, we believe, allow us to make progress during these difficult times and to take advantage of better market conditions in due course."

According to the results, the group also slashed its net debt from £19m at the end of its previous financial year to just £5.4m.

The group's Commercial Products division, which includes direct mail, point-of-sale and exhibitions, recorded the largest fall in sales from £124m in the first six months of last year to £111m, but profit rose from a marginal loss last year to £1.5m profit.

According to the group, book sales increased "modestly", while magazines continued to suffer from excess capacity resulting in the segmented results for Media Products dipping by £4.7m to £79.2m, with profits falling to £7.8m from £8.2m.

The effect of the loss of the IPC contract will not impact on the group's 2009/2010 results, the company said.

On the back of the results, St Ives' share price had risen by 1.5p to 51p at the time of writing.