Litho Supplies says it will not achieve profit expectations for the year.

Joint managing director Gerry Mulvaney said 60 jobs had been lost across the group, including the closure of its Brittons printing inks site at Herne Bay.

The announcement follows the news earlier this month of 35 job cuts, which form part of the 60, as part of a consolidation of regional offices (PrintWeek, 2 November).

"What we are trying to do is reduce working capital and this includes talking with suppliers about negotiating deals to bulk buy supplies," said Mulvaney.

The company cited the downturn following the events of 11 September, which hit trading through October normally one of its stronger months.

Mulvaney said the company had implemented a number of measures to improve handling of customers orders, including the creation of an online ordering system.

"The system is not being taken quite as quickly as we had hoped, but we are still continuing to invest in line with the rate of interest in the system," he said.

In a move to further reduce outgoings and improve efficiencies Litho Supplies has set up a virtual private network (VPN), which will allow staff to access any of the groups systems around the country.

Litho Supplies has also set up a nationwide 0800 sales number as it tries to reduce ordering costs for its customers.

"We are a good barometer of the printing industry due to our widespread customer base, but we are not preparing to see any upturn in the short-term," said Mulvaney.

Story by Andy Scott