Listed communications firm reports initial volume reduction due to GDPR
A Leeds-based communications business has seen revenues rise and pre-tax profits drop in the period it saw an initial volume reduction in marketing communication due to GDPR.
Listed Communisis this morning published it results for the half year ended 30 June, which showed revenues for the period were up 9% from £173m last year to £188m. Its pre-tax profits dipped 16% to £4m from £4.8m reported in the same period last year.
Chief executive Andy Blundell, said: “Communisis traded positively in the first half of 2018 and total sales were up 9%. Outbound statement volume grew with an increasing digital proportion but the volume of marketing communication has seen an initial reduction as an effect of the introduction of the General Data Protection Regulation (GDPR) in May.
“The Group won two significant contracts; the first with Zurich, a new insurance client, and the second with an existing client in Fast Moving Consumer Goods (FMCG) for a major expansion of services. Trading saw good free cash flow and net debt materially lowered. There was also a marked reduction in the pension deficit. Overall expectations for FY 2018 are unchanged.”
During the period, the firm saw net debt reduce to £23.7m from £28.3m in H1 2017. Its pension deficit reduced to £32.4m from £42m at 30 June 2017
Communisis said: “We continue to transform our clients’ customer communications, with the emphasis primarily on digital within a multi-channel delivery. As an example, Communisis has won a five-year contract with Zurich Insurance in the UK for the provision of these services.
“During H1 2018, 14% of outbound communications were delivered via digital channels vs 9% in H1 2017.”
Its expansion of its relationship with a global FMCG brand owner for a three-year term means that its existing coverage in Poland, Portugal and Spain will now expand to include Italy and the Middle East, the latter serviced from the firm’s Dubai hub. “Sales will start to increase from the second half of this year and we expect this client account to scale rapidly,” added Communisis.
The firm has also secured a contract with Bacardi for a further three years, operating in nine European countries. Overseas revenue now represents 34% of group revenue (H1 2017 33%).
