With Home Information Packs (HIPs) and other estate agent-related work a significant part of the company's business model, the downturn in the property market has threatened profit growth.

Piers Caldecote, chairman of Tangent, told shareholders at today's AGM that while the London-based digital printer's revenue and profits are currently in line with budget, it is "planning and preparing for a further decline" in the property markets, which will cause profits to fall below current expectations.

The profit warning comes as Tangent recorded a 22% decrease in revenue coming from the property sector as house sales hit a record low following the near collapse of the mortgage market and a dramatic fall in prices.

However, the company was buoyed by strong sales in its on-line business and local level marketing services, where year-on-year revenues respectively rose 88% and 22%, reflecting according the joint chief executive Nicholas Green, the "exciting growth in digital print".

"The reality is that, despite the troubles in the property sector, we are growing our digital print division rapidly", he said. "Our online marketing and digital print revenues are accounting for more and more of our revenue and offsetting any further deterioration of the property market."

It also announced it will have completed the move of its head office and the transfer of production work to its newly expanded 2,320sqm site in Ravensworth, Newcastle by October.

Tangent’s shares fell 16% on the news, however a research note published by broker Collins Stewart said that the revised profit forecast leaves room for upside surprise and predicted a return to form when the property market recovers.