Print software and supplies group Grafenia (LON:GRA) warned trading has not picked up and results this year will be well below market forecasts.
Markets have never been more competitive, it said, with aggressive pricing from new European entrants and domestic commercial printers diversifying into the trade print sector.
Downward price pressure has intensified and in response Grafenia has increased its promotional activity, incentives and selective discounting.
Cost savings measures have included renegotiating supplier contracts, underperforming store closures and job cuts. but these will not show through fully until the first half of the next financial year.
A new subscription model has been introduced for printing.com franchisees, whereby they licence its web-to-print software w3p in return for exclusivity for the printing.com brand in their local territory.
Online trade arm Marqetspace is still attracting orders and new clients, it added, with the annualised monthly run rate expected to hit £3m by the year end.
Digital textiles are expected to become an increasingly important part of the product range.
Peter Gunning has now been appointed as chief executive on a permanent basis.