Joint managing director Gerry Mulvaney said that despite an increase in CTP installations, Litho Supplies had seen a fall in its overall consumables business.

"There is still severe pricing pressure, with other people in our business selling at low prices," said Mulvaney.

Pre-tax profits for the year to 31 December 2001 fell 39% to 2.04m, after the company was able to add back 1.47m of exceptional charges relating to last years reorganisation of its business.

Mulvaney said these costs fell outside of the business, and as they were shown as a separate item due to accounting rules, the company was allowed to add them back.

Sales for the year fell 7% to 70.7m, while consumables sales were down 10% to 54.3m, which was also due to price discounting.

But electronic equipment sales of 13.6m were up 12% on last year, representing "another record year" for Litho Supplies.

"With small- to medium-sized customers investing 13m in those sales, that represents a lot of confidence in us and our business," Mulvaney said.

Traditional equipment sales, such as plate and film processors, fell by almost a third to 2.9m, in an expected gradual decline due to new technology.

Mulvaney said the outlook remained tough, but he felt the firm, with more than 7,000 customers, was a good barometer of the industry. "I remain confident," he said. "We will only reassess our structure if the market conditions change, but for now our reorganisation process is complete."

Story by Andy Scott