Managing director Tim Elliott said that far from being "full of doom and gloom", the firm was extremely upbeat.

In addition, he said the way some of the larger merchants were currently operating was opening up more opportunities for new business for the independents.

"We see the huge multi-national merchants almost playing into our hands."

Elliott said the message he wanted to send to not only printers but also blue-chip customers was that the firm was large enough and strong enough to satisfy all their needs.

The independent paper merchanting group has reported a half-year turnover of 34.4m to the end of June, an increase of 8.5% on the same period last year.

Elliott Baxter employs 242 staff across its eight regional branches, and last year had a turnover of 75m.

Story by Andy Scott