Profits and sales slump at Communisis

PRINTING and marketing communication group Communisis has recorded a sharp fall in sales and profits after enduring a “very challenging year”.

The Leeds-based group saw sales fall 26% to £190m during the year to December.

Pre-tax profits dropped by 80% to £2.5m after taking into account finance costs and exceptional charges relating to the disposal of a business in Bath, and property leases. After stripping out these costs profits halved to £7.2m.

Chief executive, Andy Blundell, said the company had not escaped the impact of the recession but he stressed that every division of the business had remained profitable and its technology and services arm delivered revenue and profit growth.

He said: “At this point in the year, and as the economy emerges from recession, it is too early to say just how quickly demand will return. We take some encouragement from increased activity taking place now at the marketing campaign planning stage: activity which should filter through to Communisis later in the year.

“Whilst the macro economy remains uncertain, the board believe we are well placed to benefit from the opportunities that an upturn will bring.” 

Communisis provides direct mail services for many of the major financial institutions leaving it exposed to cost-cutting following the banking crisis.

At its direct mail business sales slumped to £53.6m from £91.8m and it managed a profit of just £500,000, compared to £5.5m last time.

The growth area, technology and services, manages information for clients, such as a database of photos used in publications by the Department for Children, Schools and Families. It saw sales double to £20.3m and profits grow by 23% to £6.3m.
 
The company is to pay a final dividend of 0.43p taking the full-year payment to 1.29p, down on last year’s 2.495p.