Oakhill Group has reported a small loss for 2004 and warned that trading in the early part of 2005 has been particularly weak.

The printing firm, spun off from James Crean in 1999, reported a pre-tax loss of €142,000 last year compared to a profit of €1 million in 2003 as operating profits were hit by the disposal of its labels business last year.

While overall sales were down by nearly 19 per cent to €38.7 million, sales from continuing operations were up by 1 per cent to €34 million. Operating profit from continuing operations before exceptional items was up by 6 per cent on 2003 at €2.5 million.

However, Oakhill warned that all its businesses operate in an environment of severe downward price pressure and rapidly changing markets.

Its managed services business, which includes card production and printing of marketing materials, is facing challenges in replacing sales from diminishing sectors and significant increases in raw materials. Sales in the first quarter were 14 per cent behind last year while operating profit was down 69 per cent.

Its other main division, book and journal printing in the UK, posted a 6 per cent increase in first-quarter sales with operating profit up 2 per cent .