12th Nov 2015 09:11
LONDON (Alliance News) - Customer communication services provider Communisis PLC saw its shares sold off on Thursday morning after it said its adjusted earnings per share for the full year will fall slightly short of previous expectations.
Shares in the company were down 14% to 44.45 pence on Thursday, one of the worst performers in the FTSE All-Share.
Communisis said it expects its adjusted operating profit for 2015 to show double-digit year-on-year growth and improved free cash flow, but adjusted earnings per share, though growing, will be slightly weaker than previous expected.
Trading in its Design, Produce and Deploy divisions have been in line with its expectations, but the weakness has come from Life, the shopper marketing agency it bought in January. The Life business is taking longer than anticipated to deliver its projected earnings due to contract delays and deferrals, the company said.
"Communisis will show good growth overall and increased cash generation in 2015, despite being held back in the short term by a slower-than-expected start at Life. Recent contract wins and renewals together with the health of our pipeline, provide positive indicators of the group's prospects for 2016," said Andy Blundell, Communisis' chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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