The UK's second largest printing group has stated that results for the year ending 28 July 2006 "will be significantly below current market expectations".

Within the trading update, the firm said that there had been a "sharp and significant reduction in demand" in the web offset market. It also  added that it is set to lose "some work" in the sector in the second half of the year. This comes as Polestar announces it has become the "primary print supplier to publisher EMAP".

St Ives was unavailable for comment.

The group's share price fell over 46 pence to 2.72 on the news. This represents a 14.5% drop, and takes it to its lowest level in 12 years, according to Reuters.