St Ives share price fell to a new 52-week low of 354.5p this week after the firm revealed a 4% dip in half-year profits to 30.7m.


Group sales slipped 2.4% to 233.3m for the six months to 26 January, despite a 30% increase in US sales following last years acquisitions there.


However, the picture in the UK was much worse as sales fell by almost 16m because of a slowdown in corporate financial printing activity. "The last time it slowed down by this amount was 10 years ago, at the end of the voluntary privatisations," noted group managing director Brian Edwards.


Chairman Miles Emley said the results were "creditable" given challenging conditions. The group wasnt helped by industrial action in its web division last autumn, which cost it "a seven figure sum, although its difficult to know exactly how much," said Edwards.


The group made just under 100 redundancies, "wherever possible voluntary", across its operations (but mostly in financial printing) during the period.


Emley said that St Ives focus on specialist niche markets had helped mitigate the results: "Our exposure to a broad range of products and markets is a particular strength. I believe our position vis-a-vis our competitors is stronger than ever."


In magazines, new work has been won despite the "speculative" addition of extra capacity at competitors and continuing competition from the continent on longer-run, less time sensitive work. Emley said that due to the overcapacity and price cutting in the UK market, "for sure something will go pop. Its bound to."


Whether the groups low share price and market capitalisation of 372m leaves St Ives vulnerable to a takeover bid remains to be seen. "Someone might make a bid, and as directors we would consider our shareholders interests," said Emley.


St Ives confirmed its order for a new Rotoman N web for Edenbridge, and that it would be installing a CreoScitex CTP system at Plymouth "and maybe other plants if customers commit to it". The order for an Indigo digital press for its Bradford plant is expected to be confirmed shortly.


Story by Jo Francis