Oakhill Group, the print company spun off from James Crean, has reported a pre-tax loss of €19.6 million for 2002, up from a loss of €13.8 million the previous year.

Sales were down by 12 per cent to €65.1 million, although this reflected the disposal during the year of Meridian Printing.

Operating profits before exceptional items and goodwill amortisation rose by 13 per cent to €4.2 million.

But the group incurred an exceptional charge of €15.7 million. This included a provision of €1.9 million in respect of Meridian based on the selling price of $6.25 million. The company also reviewed the carrying value of its remaining businesses in light of current market conditions, resulting in an impairment provision of €14.2 million.

This is made up of a provision of €8.8 million in respect of Oakhill's general commercial print businesses and €5.4 million in respect of its specialty print division.

It described the provisions as "necessary and prudent", given widespread expectations that trading conditions in the commercial print and label sectors are expected to remain very difficult for the foreseeable future.