Turnover rose 5.4% to 62.5m but pre-tax loss after exceptional items and goodwill amortisation was 113,000, compared to a profit of 6.6m this time last year.

Chief executive Bryan Bedson said the group believed there were good prospects for growth beyond the present year.

He said the speed and magnitude of any recovery were difficult to predict and that it was too early to comment on the groups second-half performance.

Bedson said Wyndeham had become considerably more technologically advanced than its competitors at a time when they will find it difficult to close that investment gap.

But turnover in the groups magazine division suffered due to advertising reduction and the resulting lower paginations.

It is negotiating to print a greater number of titles but this has been delayed due to the notice periods that must be given to incumbent printers, it said.

Operating profit before exceptionals and goodwill amortisation was only 2.7m compared to 7.9m last year.

Wyndeham expects to realise cost savings in the second half from the relocation of four operations within its commercial division and the amalgamation of its two direct mail sites.