‘Marked improvement’ for Communisis
COMMUNISIS, the Yorkshire marketing services provider, has increased annual turnover and pre-exceptional profits, after closing four locations and cutting costs during the year.
Profits before exceptional items hit £9.4m (2010: £7.9m), while turnover increased 7.8% to £208.3m for the year to the end of December 2011 (2010: £193.2m). However, pre-tax profits fell to £4.2m (2010: £4.9m).
The group, which reduced its office locations from 14 to 10 and restructured its Leeds manufacturing facility during the year to reduce costs, said it was making progress towards achieving a double-digit operating margin on sales (excluding pass through) over the medium term.
Andy Blundell, chief executive of Communisis, said: “Our 2011 operating results before exceptional items showed a marked improvement on 2010 and signalled the group’s continued success in executing its strategy as a leading UK marketing services provider.
“The macro-economic environment presents a blend of risks and opportunities and Communisis is well positioned to respond to both.”
He added that the group expects to see further financial progress in the current year, and that trading in the early weeks of 2012, together with new customer prospects, support this.
The company also announced it is investing £10m in digital printing technology, which it said would keep it ahead of the industry.
New customers during the year include Boots, Premium Credit, Speedy Hire, Virgin Money (Northern Rock), Nationwide and Proximity London (BBC TV Licensing).
The company will pay a final dividend of 1p per share, with its full year dividend up 16% to 1.5p per share.
