Despite reaching the top end of profit forecasts the group's warning on costs that are out of its control caused the City to re-appraise this year's forecasts. Wyndeham shares fell by almost 16% to 111.5p as PrintWeek went to press.

Huge hikes in electricity and gas prices will raise Wyndeham's energy bill by more than 1m this year.

Wyndeham is working on further efficiency and cost-reduction initiatives, and is introducing lean manufacturing techniques at a number of sites.

Turnover in the year to 31 March increased by 14% to 141.3m, while pre-tax profits prior to exceptionals jumped 70% to 7.5m a 5.3% margin and a recovery to the levels of profitability achieved in 2002-2003.

Operating margins grew from 5.36% to 6.73%. Exceptional costs of 600,000 (for redundancies and restructuring at Keyne) and a goodwill write-off of 1.17m (related to past acquisitions) reduced the pre-tax profit figure to 5.7m.

Chairman Bryan Bedson said that despite ongoing challenging market conditions "the board is cautiously optimistic of further progress this year and thereafter."

He has agreed to remain as chairman, supporting Paul Utting who stepped up to chief executive at the beginning of April.
Print management wing Wyndeham Bespoke has gained the group "an important foothold", with ambitions for further significant growth this year.

The new 64pp Lithoman at Wyndeham Heron will be operational by September and a decision will be made over the summer about retiring older capacity at the plant.