A statement issued to the exchange today said: "Litho Supplies has requested a suspension of trading in its ordinary shares with effect from 8am this morning, pending clarification of its financial position."

This morning, a spokesman for the company told PrintWeek that receivers were expected to be appointed this week.

However, a seperate spokesman  subsequently refuted the claim and said that it is "business as usual".

"We are seeking a long term solution to a short term problem," he said. "We will trade through the holiday period."

At this stage, it is unclear how this affects the company’s subsidiaries, including finishing equipment supplier Graphic Arts Equipment.

The announcement has come as a surprise as it is less than a month since the company predicted that the overall performance of the second half of this year would be "significantly improved" on the first half.

In August, the company claimed it was "in better shape than its ever been", despite recording a £1.3m loss in the first half of the year.

The consumables specialist also branched out its services in August, with a move that saw it take on sales customer support and marketing for Mitsubishi presses.