Trading was brisk following the announcement and led to a sharp increase in the company's share price, which surged 27.8% back to £1 - still some way below the highs of more than £2.50 of this time last year.

London-headquartered St Ives posted a 3.3% increase in turnover, to £439.1m, together with a 17.4% increase in pre-tax profit, which rose to £32.4m for the year ending 1 August . The printer's underlying pre-tax profits also rose marginally, from £30.3m to £31.1m.

Chief executive Brian Edwards said the group was pleased to have recorded positive results in the face of the worsening economic climate, although he warned that St Ives would not be immune to its affects.

He said: "Our business is likely to be affected by the current economic uncertainty, which will make it hard to achieve progress in the short term. However, in the longer term, we are confident that our range of products and added value services, coupled with a continuing focus on controlling costs and preserving margins, will allow us to create value for shareholders over time."

Chairman Miles Emley explained that the rise in pre-tax profit reflected the curtailment credit arising from the closure of the group's final salary pension scheme, as well as profits and costs arising from rationalisations and disposals made during the year.

He added that the increases in underlying sales and underlying pre-tax profits had come in the face of extremely challenging market conditions and also warned that the coming year would bring further challenges.

Emley said: "The new financial year started slowly, and although activity has now increased in line with seasonal patterns, it is uncertain how long this will be sustained.

"In addition, most markets are subject to price pressure and erratic demand makes effective utilisation very challenging. We continue to take actions to address these ongoing challenges, but it is likely that they will be insufficient to offset fully the impact of the difficult economic environment in the current year."

Revenue growth came from increased sales of point of purchase products and services, magazines, and a full year's revenue from Service Graphics, which the group acquired in November 2006).

The success of St Ives' group sales strategy was also instrumental in the company's results, as seen in contract wins such as the £40m print management deal with Royal Mail.

For more see this week's PrintWeek.