Black Country-based print business Cradley Group has announced widening losses, but said it remains confident that its current restructuring will improve performance in 2006.
In the year to June 30, pretax losses increased to £2.6 million from £1.4 million, while sales slipped to £ 25.8 million from £27.8 million.
Cradley yesterday said the results "need to be set in context of the work that has been carried out to rationalise the cost base of the business, and the continued investment in the publishing sector," which included the loss of 62 jobs in the firm's printing division this summer.
It said that the cost saving measures that have been implemented "are beginning to show encouraging results", adding it has seen an improvement in performance since August.
Cradley said it had written off the cost of integrating Chelmsford-based 3D Publishing, which it acquired in October 2004.
A spokesman for the firm also said it would not rule out further acquisitions in 2006 with "one or two things currently set in motion".
Cradley said there has been a "very positive" customer response to its range of products developed to capitalise on changes being made by the Post Office.
The group also reported the sale of one of its surplus properties in Cradley Heath to a local business which yielded cash proceeds of £908,000 and allowed repayment of a bank mortgage totalling £696,000. ..SUPL: