In the face of the toughest trading conditions for "more than a decade" St Ives has posted a set of "creditable" results.

Sales were up 5.3% at 498m in the 53-week year to 3 August 2001 but pre-tax profits fell 10.1% to 62m, giving a margin of 12.4%.

Chairman Miles Emley said the drop in profits was "very largely driven by the reduction in corporate financial print". He added that this sector was "very quiet on both sides of the Atlantic and on both sides of the Channel".

Uncertainty following the 11 September attacks on the US made it impossible to predict when this market would pick up, he added.

The magazine sector was reported to be "volatile". But Emley said St Ives strategy of focusing on more time-sensitive work "has insulated us from the worst of the choppy water".

Volumes in the direct response and commercial sector remained flat year-on-year but the division improved its performance.

Its German arm, Johler Druck, suffered from low volumes and competitive pricing. But its operations in the US had managed to achieve a "better work mix" and progress had been made in integrating the Avanti/Case-Hoyt firms bought in February.

Emley said multimedia exhibited "increased seasonal volatility". But books division Clays bucked the trend and achieved "real growth in sales of both hardback and paperback books".

Despite tough conditions St Ives was in good shape, according to Emley. "Our position is as strong as its ever been in terms of financial strength and the strength of relationships with customers. The short term looks choppy but for the long term were quite confident."

Shares fell 12.5p to 3.45 on the back of the results.

Story by Lauretta Roberts