In a trading update issued this week, the group said it had increased market share and had addressed issues surrounding the underperforming commercial and direct mail business.

Wyndeham suffered poor trading in the first half and issued a profit warning at the end of last year.

Analysts are now predicting pre-tax profits of 4.3m (2003: 6.4m). The group won the contract for five Reed Business Information titles in the second half of the financial year. It also picked up IPC monthly Ideal Home and pre-press work for the publisher's TV listings and women's weekly titles.

The group had made "strong progress" towards creating a centralised sales team to achieve a more integrated offering. This will be completed by next month. Industry sources claimed the strategy resulted in 10 job cuts, some from senior staff. Wyndeham declined to comment on this.

Chairman Bryan Bedson said: "We have put the group on a sound basis for growth by rationalising our cost base, addressing the issues in our under-performing businesses and strengthening our management and group-wide offering."

Story by Andy Scott