Despite what the commercial and book printer described as "challenging trading conditions throughout 2005", pre-tax profits were up 8% on the previous year to 3.8m on sales down 4% to 41m.

The firm said the improved result was consistent with its strategy of targeted re-organisation of the unprofitable elements of its business. Sales for the group's commercial and financial printing business fell by 8% to 26.6m.

A 1.44m exceptional gain, which related to the sale of the group's Royle Corporate Print freehold site in Old Street, London, helped bolster Fulmar's results. The figure included a second-stage payment of 900,000 received from the sale of the group's unused property in Lewes, Sussex sold in 2003.

The WE Baxter property in Lewes was sold for an initial cash sum of 1.6m.

However, the firm's book businesses continued to perform well, with sales up 4% to 14.3m, reflecting sustained demand.

Chief executive Mike Taylor said that while the commercial print business continued to operate in a sector in which demand was static, capacity under-utilised and prices forced down, signs of improvement were visible.

"This is further supported by increased demand for financial print," said Taylor.

Although there was still pricing pressure in the commercial print market, Taylor said this had eased, albeit slightly, which he added could be down to other firms going out of business.