Chairman and chief executive Tim Brettell also said talks were ongoing with an unnamed suitor over the acquisition of its entire share capital (PrintWeek, 2 May).

Print management, which accounts for 66% of group sales, reported a 6% rise in sales to 10.4m.

Total turnover increased 8% to 15.8m thanks to contract wins over the last year.

Pre-tax profits of 2.3m, before goodwill, were up 5% on the same period last year.

The results demonstrate a significant improvement in our performance, with print management, our major business area, continuing to perform well, said Brettell.

Net debt has been reduced from 983,000 in December 2002 to 153,000.