Dundee printing firm Tradeprint recorded a loss last year as it underwent a significant restructure of the business.
The Wester Gourdie company, which is a major player in the business to business print sector, said the restructure would create a strong platform for profitable future growth.
Its turnover increased by 19% from £10.1 million to £12m for the year ending June 30 2017.
However, a large jump in administrative expenses from £3.7m to £6.5m saw the company record a pre-tax loss of £2.5m. In 2016 it recorded a £423,000 pre-tax profit.
Founded in 1997, the company was bought for more than £20m by Dutch firm Cimpress in 2015.
During the 2017 financial year, staff were reorganised in preparation of a merger of UK operations with another of Cimpress’ companies, Exaprint.
In his strategic report within the company accounts, director Simon Cooper explained: “Operationally, this integration introduced some complexities for us, although the financial impact of the integration was immaterial.
“During the period, we accelerated our marketing efforts and were able to acquire a large number of new resellers, who have remained loyal to the business.”
The firm, which employs 160 staff, said it had invested heavily in upgrading its website.
The new platform will allow it to quickly add categories to its portfolio such as labels and packaging.
Mr Cooper added: “Having invested significantly in ecommerce, we expect to benefit as customers continue to migrate towards mass customisation businesses and away from more traditional print partners.”