2nd Jul 2009 14:00
2 July 2009
Communisis plc
("Communisis" or "the Company")
Statement re: Consumer White Paper
The Board of Communisis plc (LSE: CMS.L), the print and business process outsourcer, notes the UK Government's proposal to ban the issue of unsolicited credit card cheque mailers, as contained in the 'Consumer White Paper' released earlier today by the Department for Business, Innovation and Skills. Communisis has exposure to this area through its Transactional Print business.
The Board believes it would be prudent to expect this proposal, whilst not yet binding in law, to have an immediate effect on customer behaviour in this segment. Whilst representing a relatively small proportion of overall group revenue (FY08: £4.2m), the impact on profit is likely to be material due to the high operational gearing within this business.
The Company has a keen focus on cost control right across the business and it has already implemented measures to take cost out of this particular business segment. However, the benefits of any further cost measures would not be felt until the next financial year and it is therefore likely that any change in customer behaviour would have an impact on Group profitability in the current year.
Communisis Chief Executive Officer, Steve Vaughan, commented:
"We have already taken steps to reduce costs and mitigate the effects of this news and we will continue to pay close attention to our cost base as we move forward through the period. My Board colleagues and I remain confident in the long term prospects for our Group and we continue to concentrate on building the diverse range of value added services we now have in our portfolio to ensure long term success."
For further information please contact:
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Communisis plc |
+ 44 (0)113 222 6515 |
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Steve Vaughan, Chief Executive / Peter King, Finance Director |
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FD |
+44 (0)20 7831 3113 |
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Edward Bridges / James Melville-Ross / Matt Dixon |
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