2nd Aug 2018 11:34
LONDON (Alliance News) - Marketing firm Communisis PLC hiked its interim dividend Thursday despite profit falling amid rising costs as it looks forward to benefiting from recent contracts wins.
For the six months ended June, pretax profit narrowed 17% to GBP4.0 million from GBP4.8 million the year prior. This was despite revenue rising 11% to GBP87.7 million from GBP79.2 million the year before.
Profit performance was hurt by a rise in costs to GBP9.9 million from GBP8.8 million the year prior.
"Communisis traded positively in the first half of 2018," Communisis Chief Executive Officer Andy Blundell said. "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 in May."
Communisis proposed a 0.93 pence per share interim dividend, up 4.5% from 0.89p the year prior.
"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 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 2018 are unchanged."
Shares in Communisis were 0.8% higher at 51.40 pence on Thursday.
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Communisis PLC