Speculation over the firm's future arose following the loss of a major contract with banking group HBOS earlier in the year.

This led to 45 layoffs from a staff of around 350. The contract represented 10% of K2 Group's 25m turnover.

 "I'm very happy with our business, we're at the cutting edge of data technology, we're very strong and we're investing," said Coleman. "Sometimes you lose a contract but it can focus your mind and your efforts."

K2 Group was profitable this year, with a 166,000 pre-tax profit on turnover just over 24m in the year to 30 April.

He flatly refuted claims from sources, who refused to identify themselves, that K2 was quoting unsustainably low prices on jobs.

"We aim to be in the middle on price. If we were putting in the prices that people were talking about, we'd be winning everything," he said.

Coleman invited the unnamed sources to identify themselves and to meet him in the presence of PrintWeek for an on-the-record discussion of pricing policy.

This year's results marked a return to profit for K2, which posted a 355,000 pre-tax loss on a turnover of 25m in the year to 30 April 2004.