Communisis upbeat despite contract loss

MARKETING services provider Communisis announced yesterday it has lost a major contract with HSBC but remains confident that the development won’t affect its full year results.

The Leeds-based company said it expects that its existing contract with HSBC Bank for direct mail services will be awarded to another supplier following a competitive tendering process.

The current annual sales value of the direct mail contract is around £7m and the company said it expects that the loss of revenue from the contract, were it to be terminated in the current financial year, would “largely be limited to the fourth quarter”.

Communisis said: “With strong performance in certain of our other service areas, including work with new customers, management’s current expectations for overall group results for both 2011 and 2012 are unchanged by this development.”

Communisis’ separate and significant contracts with HSBC for transactional (statement and billing) and cheque printing are unaffected.