The significant decline in demand for promotional print, plus overcapacity, had led to severe downward pressure on prices, he added.

However, paperback book subsidiary Bookmarque is trading well, and Taylor felt the south London-based group was still well positioned to withstand the tough conditions.

Fulmars sales fell by over 400,000 to 20.55m, while pre-tax profits fell 2.5% to 1.81m, before an exceptional charge of 930,000 relating to the relocation and rationalisation of WE Baxter in May.

And without the contribution of Quadracolor, which Fulmar acquired in February, the groups sales from commercial printing would have dropped by 17.6%.

Fulmars first 12-colour Heidelberg Speedmaster became fully operational in August, and the second is due for delivery in January.

Fulmars shares fell 8.5p, or 11.2%, to 67.5p after the announcement.