The investment included R&D, the development of company brands, and the purchase of a Xeikon digital press and two Edale presses.

A further four jobs have also been created at the £2.5m-turnover Cannock-based site, which now has 23 staff, in the past 12 months.

In April last year, the group acquired the assets and goodwill of barcode labelling specialist AC Labels, and the Derby site now has nine staff.

Hugo Gell, Mercian Labels sales director, said: "We have refitted and remodelled the existing offices, and are still looking to grow organically. We haven't ruled out further acquisition.

"Business is good and growing. We are pleased with the results so far this year, although the outlook for the remainder of the year is unclear."

Mercian Labels is looking to continue to expand its export market products, which currently consists of 25% of its output and is "growing rapidly".

As part of the £1m investment, it has also developed the coating and printing technology for its Label Lock product, which Gell said is cutting-edge and innovative.

He added that the company would also launch a security tape this year, which will be used by the airline cargo industry to securely seal cargos.

The opening of the refitted site was conducted by MP Aidan Burley, and was attended by several industry executives.

Adrian Steele, Mercian Labels managing director, said: "Last year, Mercian Labels reached a landmark following 40 years of printing self-adhesive labels, as well as completing the acquisition of the new business in Derby.

"The past 10 years have been spent in our purpose-built factory and offices in Cannock, and we felt it fitting that our latest investment programme concluded with a makeover that creates an even better working environment for our growing number of local employees."

Mercian Labels was formed in 1969 and prints self-adhesive labels in medium and short runs for UK businesses.

It uses a variety of methods including digital, flexo and hot foil technologies.