In the six months to 31 December print sales at the West Midlands business fell 6.3% to 12.7m, mainly due to customers supplying their own paper. Print's operating loss increased to 307,000. Group sales were 13.3m (2003: 14.2m).

A complete restructure involving "significant but necessary upheaval" in its publishing wing produced an operating loss of 375,000 on sales of 643,000.

Managing director Chris Jordan said timing changes on some large projects had impacted the print figures. "The balance between loading and margin is very difficult these days," he said. "Our second half will be more straightforward."

The group could benefit from the displacement of work from fire-stricken Graphoprint. Cradley has a similar press set up and has expertise in small formats and press finished products. "A lot of their work is very similar," Jordan said.

Cradley also renewed its Time and Newsweek contracts with a new three-year deal.

It also plans to promote its specialist offerings via a marketing campaign this year.

Story by Jo Francis