The present invention discloses a method and apparatus for imaging and cutting a label from a linerless label substrate 6, the substrate 6 comprising: a paper or polymeric film base layer; a colour change layer, incorporating a colour change compound operable to change colour in response to illumination by a laser 1; an adhesive layer; and a release layer adapted to have low adherence to the adhesive layer. The label substrate 6 is transported from a storage reel to an imaging area. At the imaging area, the label substrate 6 is selectively illuminated by laser 1 to form an image in the colour change layer. Subsequently, further laser illumination is used to cut the label substrate 6 thereby providing a single label for application to an object. The invention is characterised in that the laser spot size is varied for imaging and cutting.