Trading Update

12 November 2015

Communisis plc

("Communisis" or the "Group")

Trading Update

Leading provider of personalised customer communication services, Communisis plc (LSE: CMS), provides a third quarter trading update for its financial year ending 31 December 2015.

The Group expects to deliver results for 2015 that reflect double-digit growth in adjusted operating profit, improved free cash flow and increased adjusted earnings per share when compared to 2014, but slightly below previous expectations, due specifically to the performance of Life. Otherwise trading in the Design, Produce and Deploy divisions is in-line with expectations.

In Design, Life, the Group's shopper marketing agency acquired in January 2015, is taking longer than anticipated to contribute its projected earnings, due to some reduction or deferral in spend by existing clients and to the phasing of certain new business opportunities. Nevertheless Life's pipeline for 2016 is building and the strategic rationale for its acquisition remains clear, with synergy opportunities emerging as the Design and Deploy segments offer their combined services to brand owners.

Produce has continued to take advantage of its market leading position, particularly in the provision of outbound transactional services, where the Group has signed three important contract renewals during the period and is well-positioned in other competitive tenders.

Strong new business momentum has also been seen within Deploy where, in recent months, three brand deployment contract wins have been secured with large clients across Europe in the fast moving consumer goods and electronics sectors. Additionally the Group's relationship with Boots, the UK's leading pharmacy-led health and beauty retailer, has been renewed.

Andy Blundell, Chief Executive, commented:

"Communisis will show good growth overall and increased cash generation in 2015, despite being held back in the short term by a slower than expected start at Life. Recent contract wins and renewals together with the health of our pipeline, provide positive indicators of the Group's prospects for 2016."

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About Communisis

Communisis is a UK leading provider of personalised customer communication services that specialises in helping clients communicate with their customers more effectively and more profitably in fast-changing markets.

Communisis has a reputation for production excellence and innovation and is trusted by many leading, consumer-facing brands to design, produce and deploy multi-channel personalised customer communications accurately, securely, reliably and at scale.

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