The Leeds-based company yesterday reported pre-tax profit rose to £7.6m for the first six months, from £4m last year.

Communisis, which has focused on more lucrative high-technology marketing campaigns instead of low-margin print jobs, said all operations reported profit. Revenue was up only slightly at £148m from £146m last year.

More customers are now buying multiple services, Communisis said, with 26 of its top customers buying more than one service, up from 24 at the year end.

Chief executive Steve Vaughan said since his appointment in October 2006, the business has undergone a remarkable transformation.

"Two years ago this was a business which had all the classic symptoms of a business that was under-invested and poorly managed," Mr Vaughan said. "Now it's a business that's properly invested in and properly managed."

The Leeds-based direct mail business which employs 750 staff in the city "is responding absolutely brilliantly to the investment and turnaround plan". Profit in the division increased more than 640 per cent to £3.6m.

Communisis intends to invest another £10m into the business in coming months, with more than half of this in Leeds. Investment is being done "more cleverly", Mr Vaughan said, with more complicated marketing campaigns.

Communisis completed the sale of its Bath Business Forms subsidiary on June 30, for which it received £8.2m, rising to £12.8m. The group said the business, which employed 500 staff, had "limited growth prospects" under its ownership, and the disposal allows it to concentrate on higher margin business.

Net debt was slashed to £15m on June 30, from £39.1m a year ago and based on its financial position, Communisis said will pay an interim dividend of 0.86p per share, up from 0.818p a year ago.

Mr Vaughan said while the economic downturn has not significantly hit customers' spending, they are switching to more targeted mailing campaigns – holding on to current customers rather than trying to win new ones – and ultimately spending more with the company. "Aspects of the economic conditions may play in our favour," Mr Vaughan said.

Analysts at brokerage Panmure said improvements are "beginning to transform Communisis towards being a company with much more significant levels of added value".