Turnover in the year to 31 March increased by 14% to 141.3m, while pre-tax profits prior to exceptionals jumped 70% to 7.5m a margin of 5.3% and a recovery to the levels of profitability achieved in the 2002-2003 financial year.

Operating margins grew from 5.36% to 6.73%.

Exceptional costs of 600,000 and a goodwill write-off of 1.17m reduced the pre-tax profit figure to 5.7m.

Chairman Bryan Bedson said the group was now more efficient, and set to benefit from the restructuring measures that have been put in place. "In 2005 Wyndeham has started to show the benefits of the change undergone in previous years. Despite ongoing challenging market conditions the board is cautiously optimistic of further progress this year and thereafter," he said.

Bedson said he had agreed to remain as the group's chairman, supporting Paul Utting who stepped up to chief executive at the beginning of April.

In his own review, Utting said margin pressure remained an issue, and cited increased energy costs as a concern going forward.

Wyndeham is working on a number of efficiency and cost-reduction initiatives, and is introducing lean manufacturing techniques at a number of sites.

Print management wing Wyndeham Bespoke has gained the group "an important foothold" in that market.

The new 64pp Lithoman at Wyndeham Heron will be operational by September and new contract wins have provided a base loading for the press.

The closure of Keyne Print in Milton Keynes came after the group's year-end.

Despite reaching the top end of analyst's forecasts Wyndeham shares fell 10p, or 7.5%, to 122.5p in trading this morning.