Communisis back on track with profits increase

MARKETING services business Communisis has kept revenues steady but made improvements in pre-tax profits following a restructure of the business.

Revenues stayed relatively static at £174.9m, up from £174.6m in the first half of 2015.

Half year pre-tax profits increased to £4.4m from £3.2m, following the trend which saw the company get back in the black earlier this year.

Communisis said that it had been working on “delayering” its management, outsourcing non-core activities and reducing central costs, which it believes will save £3m.

Group managing director Dave Rushton was part of these plans, and in June it was announced he would be leaving six months earlier than planned.

The company said that international sales now account for 24% of total revenue after an overseas expansion programme.

Communisis chief executive, Andy Blundell, said: “Communisis has grown profitability, sustained strong cash generation, further reduced net debt and increased the dividend. Trading in our main markets has been good and we have won significant new, long-term contracts.

“A simplified two divisional structure addresses our main client opportunities and reduces cost. We remain confident of delivering on our full year expectations for the Group.”