Oakhill Group posted a loss in the first half of this year after demand for its print services declined amid increased competition from Eastern Europe and Asia.

The Dublin-based firm, which was spun off from James Crean in 1999, posted a net loss of €7.2 million in the first six months of the year, compared with a profit of €616,000 in the year-earlier period. Total revenue fell 9 per cent to €15.7 million.

The company said its two divisions were experiencing "severe downward price pressures" as well as increases in raw material prices.

Revenue from the group's managed services division, which includes the printing of mobile phone top-up cards and retail gift vouchers, fell by 12 per cent to €10.9 million, while its operating profit dropped by 55 per cent to €657,000.

Oakhill said demand for top-up cards had declined significantly as mobile phone companies adopt electronic top-up systems. It said it saw the market declining further in the future.

Meanwhile, the group's books and journals division performed better, with revenue increasing by 6 per cent from the year-earlier period to €4.8 million. Operating profit slipped by 10 per cent to €649,000.

Oakhill said it should start to see the benefits of the installation of a new printing press in the second half of the year.