In a trading update following its financial year-end on 31 March the group said its final results were likely to be in line with the downgraded expectations it announced in February.

Grafenia said competitive trading conditions included “continued aggressive pricing and promotions from competitors”, but said it had "made further progress" with its new initiatives.

The business has targeted an annualised monthly run rate of £3m for the Marqetspace service, with the operation exceeding that target last month.

It has been migrating existing Printing.com franchisees to its new subscription model, and signed up a further seven partners following the Expoganza roadshows held in Manchester, London and Bristol earlier this year. “We have a bit of a pipeline going on,” said Grafenia chief executive Peter Gunning.

The group has also signed additional contracts for its Nettl web studios offering, and will soon have more than 50 studios, while it has racked up more than 130 subscribers for its Brambl web design tool.

"Our new financial year has started and we're seeing good traction with Nettl and a resurgence of interest in our new, simpler Printing.com model," Gunning added. "People want assuredness of supply chain and the tools to connect with clients. It's encouraging."

Grafenia had sales of £17m last year, but sold off its £6m turnover Dutch subsidiary in October 2015. It will announce its year-end results in June.

The firm’s share price was up by 0.22p, or 1.91%, to 11.46p at the time of writing (52-week high: 23p, low: 6.89p).