31st Jul 2014 10:59
LONDON (Alliance News) - Communisis PLC Thursday raised its interim dividend as it expressed confidence in its prospects for the remainder of the year, as it posted a rise in the pretax profit in the half-year to the end of June.
The marketing services company proposed an interim dividend of 0.67 pence, up from 0.60 pence in the previous year.
Communisis posted a pretax profit of GBP2.9 million, up from GBP1.3 million, as revenue rose to GBP169.3 million from GBP121.2 million. The company saw growth in all of its segments, particularly its Produce business as new contracts from 2013 took effect, offsetting reduced demand for direct mail and a decline in higher-margin chequebook volumes.
The proportion of revenue from overseas was 19%, Communisis said, approaching its medium-term target of 20% earlier than it had expected.
Communisis said that fees from creative and digital agencies it acquired during the last nine months boosted revenue in its Design segment, however, this was offset by lower sales in data due to lower demand for prospect lists in the insurance sector.
The company signed a new multi-year contract with Lloyds Banking Group PLC, and extended its contract with Procter & Gamble Europe SA.
The company posted an exceptional charge of GBP1.2 million relating to restructuring and rationalisation.
As of August 1, Communisis' Finance Director Nigel Howes will be relinquishing the role to focus on his other executive position of strategic and corporate development director. He will be succeeded by Mark Stoner, who was previously finance director at Atmel Inc.
"This was another strong half-year performance. It demonstrates that our strategy is delivering consistent and profitable growth and the board is confident about the group's prospects for the remainder of the year," the company said in a statement.
Shares in Communisis were trading down 2.0% at 61.75 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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