"If anything in the UK we're recruiting," said UK sales director Nigel Street.

It is laying off more than  200 staff as part of its restructuring to hit a pre-tax profit target of 8% by the end of its 2005 financial year.

It will take a 3.4m ($6m) hit in its fourth quarter to cover the move, which includes the 60 staff and 1.7m charge announced with its third-quarter results, (PrintWeek, 12 August). Chief executive Amos Michelson wouldn't rule out further restructuring to hit is target. He told analysts: "Management is totally committed to 8% or better profit before tax and will take all means necessary to achieve it."

Research and development staff are being cut by 8% "spread across a number of product lines where we've made significant improvements in the past few years".

Sales and service staff in its US and European offices are also being cut. It has also worked with suppliers to reduce its manufacturing costs.

The firm predicts its plate business, which it claims is now the fourth biggest in the world, will grow by over 50% again next year. It is investing in additional logistics as demand increases and announced that it is building an extra plate line at its US factory.

It will announce further details of its planned European plate factory and US plans within the next quarter.

"Our strategy is succeeding and is the cornerstone of our success," said Michelson of the firm's plate business. He said that 8% of Creo CTP customers were now using its plates and that over 30% of new installations were with its plates.

The firm has slightly lowered its sales expectations for the fourth quarter to 90m-93m.

Story by Barney Cox