The loss has been blamed on the restructuring of its business arm, which included consolidating its business publishing activities at one location.
Highbury House chairman Ian Fletcher said that so far for 2004 trading was "exceeding expectations", adding that "the prospects for the rest of the year are favourable".
Fletcher also said that the year ahead would also be a year of consolidation in which it aims to focus on its consumer arm.
During 2003, the consumer side of the business was significantly strengthened by the acquisition of Cabal Communications, publisher of Front and Real Homes Magazine, and Paragon Publishing.
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