22nd Jul 2009 12:00
22 July 2009
Communisis plc
("Communisis" or the "Company")
Trading update
The Board of Communisis ("The Board"), the leading provider of print and marketing communication services, provides the following update on trading for the half year ended 30 June 2009.
In its Interim Management Statement of 20 May 2009, the Board noted that challenging market conditions had continued to reduce volumes in its less value-added segments. As the year has gone on, so these factors have continued to impact the business in all of its business areas.
Most recently, the Board notes a trend amongst its larger customers to delay decisions on buying some of the higher margin services provided by Communisis such as data analysis projects, business change initiatives, cheque rebranding and highly personalised marketing campaigns. This has led to a deterioration in the Group's margins, on top of the impact that was already being felt due to reduced volumes.
As a result of these combined factors the Board now expects Communisis to report full year operating profit below its previous expectations. The Board expects these poor trading conditions to remain a feature of the second half of the financial year although, at this stage, considers a stronger weighting of profits towards the second half to be achievable.
The Board intends to maintain the interim dividend at the same level as last year.
Steve Vaughan, Communisis Chief Executive, commented: "There is no question that our customers are keen to move towards a model which allows them to achieve a more profitable and effective marketing approach, but the downturn has meant that decisions around buying these services are being delayed. Although volumes have been more encouraging in recent weeks, the impact that customer delays are having on our revenues and margins has led us to take a more cautious view of the outcome for the year as a whole."
Communisis expects to announce its interim results for the period ended 30 June on 27 August 2009.
For further information please contact:
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Communisis plc |
+44 (0)113 222 6515 |
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Steve Vaughan, Chief Executive |
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Financial Dynamics |
+44 (0)20 7831 3113 |
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Edward Bridges |
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James Melville-Ross |
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Matt Dixon |
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