In a statement to shareholders at its AGM this morning, the company said it was below its budget for this year but trading had still increased year-on-year.

Chairman George Hardie said: "With the vast majority of Printing.com orders being used for promotional purposes, it is not surprising that in the present economic downturn, trading conditions are more difficult than in recent years.

"However, the fact that the company is still trading above last year's level, albeit from an increased number of outlets, reflects our belief in the strength of the Printing.com offering.

"Also it reflects our belief that we can mitigate aspects of the present downturn with potent monthly offers and other such initiatives."

The statement went on to report that the Network Partner initiative, which allows producers of merchandise products to sell their wares through the Printing.com network, had generated its first orders.

The company reported a "cautious outlook" in view of the worsening economic conditions but said should trading continue as it is, "modest advancement would be made in the present year".

For more see next week's PrintWeek.