For the year to 31 March 2003 group turnover across all its operations fell 6% to 38.9m, while it made a pre-tax loss of 4.1m, compared to a profit of 940,000 the previous year.

However, last year European Colour restructured selling its coatings business Tor Coatings to Deancove for 13m in September. It also closed its head office in December, saving 500,000 a year.

Chairman Paul Deakin said: This change has been positive and we have commenced the new financial year in a much improved financial position, with a significantly stronger management team and with real confidence that continued organic growth can be achieved.

Turnover on European Colours continuing operations increased 5% to 32.5m, where it also recorded a pre-tax loss of 1.35m, compared to a pre-tax loss of 1.05m the previous year.

Deakin added that the company now had the right team, strategy and funding to return to growth.

The cash-rich shell of the former print and packaging company Jarvis Porter has invested heavily in the company over the last few months. In May it increased its stake in European Colour to 29.7%.

Story by John Davies