The Irish-based print and packaging firm, which owns companies including Bell & Bain and Hythe Offset, reported a 2% fall in overall sales to 16m, mainly due to tough exchange rate conditions.

Chairman Martin Delaney expected the groups trading outlook to remain competitive for the remainder of the year, with no sign of any immediate improvement.

In speciality print, which includes its books and journals business, and labels business in the UK and Ireland, sales fell 7% to 7.1m, but operating profits rose 89% to 723,000.

Sales fell in its label business, comprising Technique Labels and Label Art, but operating profits benefited from improvements in manufacturing efficiencies.

The company said its card services business, which includes Hythe Cards and PCC, continued to develop in line with plans.

Oakhills banking facilities mature within the next 12 months, so the company is currently in refinancing talks.

In February, Oakhill sold its US-based speciality print business, Meridian Printing, to MPI Acquisition, using the net cash proceeds of 3.5m to repay bank debt (PrintWeek, 31 January).

Oakhill Group employs 450 people in the UK and Ireland.