Communisis wins Yorkshire Building Society contract as sales rise

COMMUNISIS today announced major new contract wins as it saw a third year in a row of growing sales and profitability.

The Leeds-based group, which has evolved from a traditional printing business into a “provider of personalised customer communication services”, has won two major three-year contracts with Yorkshire Building Society and Thames Water as well as renewed contracts from a financial services group.

It announced the deals as it unveiled results for the year to December 31 that showed profits before exceptional items up 23% to £11.6m, operating margin increasing to 6.5% from 5.5% and year end net debt reduced to £20m from £24.7m.

Turnover grew from £208m to £230m during the year and increased overseas revenues from 4% to 7% of total revenues.

Earlier this year the group raised growth capital of £20m to invest in new contracts, restructuring costs, acquisitions and working capital.

Communisis is paying a final dividend of 1.1p a share, making a full year dividend, up 10% at 1.65p.

Chief executive, Andy Blundell said: “In 2012 Communisis has successfully grown the business and substantially improved operating profitability for the third consecutive year.

“We are established as the trusted partner of many leading, consumer-facing brands in delivering their personalised customer communications. The continuing market trends coupled with our recent equity raise of £20m mean that the group is well-positioned for another year of growth.”

The contract with Yorkshire Building Society will see Communisis produce all direct mail for YBS as well as managing all of its point of sale branch material.

Mr Blundell added: “Winning these contracts proves that our proposition stands-out in the market and is attractive both to new and existing clients.”