Point-of-sale and books were the bright spots within the group with other markets experiencing little growth, downward price pressure and over-capacity.

Sales rose from 410.3m to 419.5m, which included a contribution of 35.3m from point of sale acquisition SP Group.

Profit before tax, exceptional items and goodwill amortisation was down slightly to 39.1m (2004: 39.7m).

Pre tax profit was down to 11.4m from 14.9m after 27.7m of charges for exceptional items and goodwill including 14.1m on the disposal of German firm Johler Druck and 9.9m for the consolidation of its operations, which included the closure of Caerphilly.

In addition to the rationalisation of its operations during the year the firm also invested in more efficient kit to lower production costs. Its spend of 36m, more than twice the previous year's figure, included two MAN Roland 64pp webs, one at Roche and one at Peterborough, and the UK's first Kolbus/Ferag Publica-Rollstream high-speed perfect binding line at Plymouth. It also built a logistics centre adjacent to the SP site in Redditch.

"In recent years we have undertaken significant rationalisation and consolidation whilst continuing to invest in the best available technology to reduce costs of production and enhance our service offering," said chairman Miles Emley (pictured). "We believe that our commitment to service and quality, and our increasing focus on the provision of added-value service in addition to the supply of printed products will deliver progress for shareholders."

Shares opened at 3.59 and fell to 3.50.