Group sales fell 6.3% to 437.2m, while pre-tax profit prior to exceptionals nudged up 2.2% to 36.9m.

Turnover at Clays jumped by 25% to 70m on the back of an excellent year boosted by boy wizard Harry Potter. The Suffolk plant printed JK Rowlings much-anticipated bestseller Harry Potter and the Order of the Phoenix this summer. It was also the first full year for Clays exclusive trade and general book contract with HarperCollins.

In its direct response and commercial division sales were down but profit margins improved thanks to a focus on more added-value work.

UK magazine demand was described as particularly weak during May to July, with prices overall remaining extremely competitive.

Financial print remains in the doldrums, and sales declined by a further 28% to 35m.

Chairman Miles Emley said the group did well to make a modest improvement in both margin and profit, but he saw little sign of any sustained upturn in activity.

The groups bottom line did not really benefit from the cost savings made last year because overcapacity and weak demand saw the benefits passed to customers through lower prices.

St Ives German operation remains loss-making, and the groups 120.6m-turnover operation in North America also posted an operating loss.

St Ives share price, which hit a 52-week high of 420p last month, rose 2.5p to 390p on the results.