For the year to 31 December 2001, turnover was down 800,000 to 39.7m, while pre-tax profits before exceptionals and businesses disposed fell by 700,000 to 3.3m.

Chief executive Mike Taylor said commercial printing operations, which accounted for 65% of the south London-based groups turnover, had "generally performed creditably" in a market suffering from reduced demand and overcapacity.

But White Quill, its book jacket and cover printer, boosted sales by 19% due to increased demand from Bookmarque, its mass market paperback book production site. Fulmars specialist book finishing operation will move to 24-hour working next month.

However, Royle Financial Print, Fulmars City printing business, continued to suffer from the severe reduction in corporate activity, said Taylor.

In October 2001 the group sold The Box Room, its Tamworth-based pre-press operation, but last month it added 7m-turnover Quadracolor to its stable and spent 3.7m on two 12-colour Heidelberg Speedmasters.

Fulmars shares fell 5%, or 3.5p, to 66.5p on the results, but were still trading above last weeks price.