6th Mar 2014 12:50
LONDON (Alliance News) - Communisis PLC Thursday raised its total dividend as it saw pretax profit rise in 2013, driven by new contract wins.
The outsourcing company posted a total dividend of 1.8 pence, up from 1.65 pence in the previous year.
Communisis posted a pretax profit of GBP6.3 million, up from GBP5.2 million in the previous year, as revenue rose to GBP270.1 million from GBP229.8 million in the previous year.
Profit was hampered by higher employee benefits, expenses and exceptional costs, said the firm, as it posted GBP3.5 million in restructuring costs resulting from the closure of its cheque production at Trafford Wharf and rationalisation of its direct mail facility in Leeds.
Communisis said its key financial target for the medium term was to deliver a double-digit margin on sales, and to derive more than 20% of its total revenues from overseas sources as it continues to grow UK sales.
International revenues rose to 18% of total turnover from 7% in the previous year.
Revenue growth was boosted by three new long-term contracts throughout the year, two with Lloyds Banking Group PLC and the other with Nationwide Building Society.
"The growth was achieved through a relentless focus on clients as new contracts were secured to underpin the Group's expansion plans for the foreseeable future," Chief Executive Andy Blundell said in a statement.
Communisis noted the improving UK economy, saying it was an early indication that marketing budgets will generally increase to drive business growth. It said it was well positioned to capitalise on this, as well as the trend towards more outsourcing of both in-bound and out-bound customer communications.
Shares in Communisis were trading down 0.71% at 69.50 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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