15th May 2014 10:48
LONDON (Alliance News) - Marketing services provider Communisis PLC Thursday said it trading in line with expectations in the first quarter but plans to "rationalise" its facility at Cross Gates Leeds, in response to declining direct mail volumes.
Communisis said a consultation has started with a view to reducing the headcount of the Cross Gates Leeds facility by about 75 people. This would give rise to an estimated exceptional charge of approximately GBP1.5 million in the second quarter with an equivalent cash cost in the second half of the year, the company said.
Communisis said its other sites in Leeds and in Copley, Halifax will not be affected by this proposal.
Earlier this year Communisis acquired video and film production specialist Jacaranda Productions Ltd and digital creative agency Public Creative Ltd for a total initial consideration of GBP1.9 million in an effort to support and build on its design division.
Looking ahead the company said its outlook for 2014 remains unchanged.
Communisis shares were quoted down 4.5% at 66.00 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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