I have four of my books with Willow Bank Publishing, under their imprint Butterfly. They have done everything correctly and the first book out, The Lombardy Grotto, looks good. I’ve promoted it myself, like mad and it’s done okay but isn’t exactly a best seller yet.
A friend of mine may be about to be published with Pegasus Elliot Mackenzie. You can’t fault them on being a traditional publisher and they are completely upfront about the likelihood of sales being slow. They don’t ask for payment. Their web site looks good.
All of these are better than self-publishing or subsidy publishing. Their books do tend to be more expensive than those of mainstream publishers. That isn’t always a bad thing. They lead to a book on a shelf. They will probably allow you into the Society of Authors. Most importantly, they may allow you to produce something which is not what the mass market wants but for which there is nevertheless a market.