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Communisis Lifts Annual Dividend, Signs New UK TV Licensing Contract

8th Mar 2018 11:32

LONDON (Alliance News) - Communisis PLC on Thursday reported a "strong" set of annual results with a rise in both profit and revenue in 2017, with the company also increasing its dividend.

The integrated business service provider recorded pretax profit of GBP14.4 million in 2017, up 24% from GBP11.6 million the prior year, on revenue of GBP375.9 million, up 4.0% from GBP361.9 million.

Communisis said its Customer Experience segment had a strong overall increase in profitability with adjusted profit up to GBP22.4 million from GBP19.9 million. Revenue also rose, to GBP189.3 million from GBP185.0 million in 2016.

The Brand Deployment segment, however, achieved proportionately less profit growth than revenue growth due to country mix and investment in new markets. Revenue for 2017 grew to GBP186.6 million from GBP176.9 million, while adjusted profit only slightly rose to GBP16.5 million from GBP16.2 million the prior year.

Communisis proposed a final dividend of 1.77 pence per share, taking its total dividend for 2017 to 2.66p, up 10% from the 2.42p it paid the prior year.

The company said it believes itself to be well protected from potential negative economic impacts related to Brexit, as there is not yet any clear political impact on the economies in which the company operates.

Communisis Chief Executive Officer Andy Blundell said: "Strong trading in 2017 saw Communisis generating profitable growth with good levels of free cash flow and a significant reduction in net debt. Long-term contracts have been secured with a major UK Bank and with Proximity Ltd to provide communication services to the BBC for the TV Licensing programme.

"A strategy for the group's next phase of growth is being launched today: a focused, three year plan to create enhanced returns to shareholders as we raise the value we provide to our clients."

In the separate statement on Thursday, Communisis announced that it renewed a contract with Proximity London Ltd for the UK's TV licensing for six years with an option to extend by a further four years.

The company said as a part of the contract it is responsible for fulfilling 55.0 million pieces of transactional mail and 15.0 million emails per year. In support of response management in TV licensing contact centres, the company processes up to 135 data files per day to meet specific release timings.

''Communisis is delighted to have confirmed this contract with Proximity and to have been entrusted to provide these vital communication services to the BBC/TVL. Looking forward, formats and the way in which end customers prefer to receive information will continue to evolve and we are ready to respond through our strategy for Digital First,'' Blundell added.

Communisis shares were up 3.7% at 66.60 pence each on Thursday.


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