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Communisis profits boosted by long-term contract signings
Integrated marketing services company Communisis saw pre-tax profits grow just shy of a quarter in its most recent trading year, as the Leeds-based group renewed its marketing communication and transactional mailing based contract for British TV licences.
Communisis posted a total revenue of £375.9m for the twelve months ended 31 December, a 4% improvement on the year before, and pre-tax profits of £14.4m, up 24% versus the prior year.
Communisis also revealed to investors on Thursday that it had secured a contract renewal with Proximity London, a contractor to the BBC, for the UK's TV Licensing communications and transactional mailing - initially extended for a six-year period, the contract did contain an option to extend an additional four years.
Net debt was down 20% to £24.3m and free cash flow dropped 3% to £12.5m.
Communisis also launched its Value Enhancement Programme, a three-year plan designed to improve returns to our shareholders.
Chief executive Andy Blundell, said, "Strong trading in 2017 saw Communisis generating profitable growth with good levels of free cash flow and a significant reduction in net debt. Long-term contracts have been secured with a major UK Bank and with Proximity Ltd to provide communication services to the BBC for the TV Licensing programme."
"A strategy for the group's next phase of growth is being launched today: a focused, three year plan to create enhanced returns to shareholders as we raise the value we provide to our clients," he added.
Earnings per share improved 5% to 6.4p and Communisis increased its full-year dividend per share by 10% to 2.66p.
As of 1120 GMT, shares had gained 3.74% to 66.60p.